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HomeMy WebLinkAbout14-3403s E C T I 0 N A s E C T I 0 N B Supreme Cou>rtof Pennsylvania CourtPleas Civil Cover;Sheet C County For Prothonotary Use Only: Petition Declaration of Taking Docket No: / y - 3 0 3 CILJ'L The information collected on this form is used solely for court administration purposes. This form does not supplement or replace the filing and service of pleadings or other papers as required by law or rules of court. Co iencement of Action: Petition Declaration of Taking Ell Complaint a Writ of Summons ® Transfer from Another Jurisdiction Lead Plaintiff's Name: K:4. I`✓r,v 'Fge A r ) Lead Defendant's Name: Al C(%eucps- (2l It xi.- £ d4m,lJ(. In, rspc, t1;N Dollar Amount Requested: a within arbitration limits Are money damages requested? 1-= Yes a No (check one) ® outside arbitration limits Is this a Class Action Suit? ® Yes [No Is this an MDJAppeal? = Yes [No Name of Plaintiff/Appellant's Attorney: A/tfte k C , l) v g'ir- . Check here if you have no attorney (are a Self -Represented [Pro Se] Litigant) Nature of the Case: Place an "X" to the left of the ONE case category that most accurately describes your PRIMARY CASE. if you are making more than one type of claim, check the one that you consider most important. TORT (do not include Mass Tort) O Intentional O Malicious Prosecution O Motor Vehicle 0 Nuisance 0 Premises Liability O Product Liability (does not include mass tort) O Slander/Libel/ Defamation O Other: MASS TORT O Asbestos ▪ Tobacco O Toxic Tort - DES O Toxic Tort - Implant O Toxic Waste ▪ Other: PROFESSIONAL LIABLITY O Dental Legal O Medical O Other Professional: CONTRACT (do not include Judgments) O Buyer Plaintiff ▪ Debt Collection: Credit Card O Debt Collection: Other ▪ Employment Dispute: Discrimination 0 Employment Dispute: Other 0 Other: REAL PROPERTY 0 Ejectment 0 Eminent Domain/Condemnation O Ground Rent 0 Landlord/Tenant Dispute 0 Mortgage Foreclosure: Residential O Mortgage Foreclosure: Commercial • Partition O Quiet Title O Other: CIVIL APPEALS Administrative Agencies O Board of Assessment O Board of Elections 0 Dept. of Transportation 0 Statutory Appeal: Other 0 Zoning Board 0 Other: MISCELLANEOUS O Common Law/Statutory Arbitration O Declaratory Judgment O Mandamus 0 Non -Domestic Relations Restraining Order 0 Quo Warranto 0 Replevin QrOjr: t4 n4) Updated 1/1/2011 Johnson, Duffle, Stewart & Weidner By: Mark C. Duffle I.D. No. 75906 301 Market Street P. O. Box 109 Lemoyne, Pennsylvania 17043-0109 (717) 761-4540 KAITLYNN F. BENSON 190 Melbourne Lane Mechanicsburg, PA 17055, Plaintiff v. MELBOURNE PLACE CONDOMINIUM ASSOCIATION, 1300 Market Street P.O. Box 622 Lemoyne, PA 17043 MICHELLE C. CRYTZER 105 Melbourne Lane Mechanicsburg, PA 17055 MICHAEL D. PATCH 126 Melbourne Lane Mechanicsburg, PA 17055 DENISE H. KOSER 111 Melbourne Lane Mechanicsburg, PA 17055 LOU ANN GUILLES 128 Melbourne Lane Mechanicsburg, PA 17055 CINDY CONNORS 195 Melbourne Lane Mechanicsburg, PA 17055, Defendants THE PRO 1 HUN017\f if JUN -6 AH}i : 39 CUMBERLAND COUNTY PENNSYLVANIA Attorneys for Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. /// _ 3g0.3 ai/t CIVIL ACTION FOR SPECIAL INJUNCTIVE RELIEF 103.75 -pd fjff✓' cAt- 1/7/614 R*366g31/45- NOTICE TO DEFEND To the Defendants: You have been sued in court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this complaint and notice are served, by entering a written appearance personally or by attorney and filing in writing with the court your defense or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the court without further notice for any money claimed in the complaint or for any other claim or relief requested by the Plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association Lawyer Referral and Information Service 32 South Bedford St. Carlisle, PA 17013 Telephone (717) 249-3166 Toll Free (800) 990-9108 AVISO USTED HA SIDO DEMANDADO/A EN CORTE. Si usted desea defenderse de las demandas que se presentan mas adelante en las siguientes paginas, debe tomar accibn dentro de los pr6ximos veinte (20) dias despues de Ia notificacion de esta Demanda y Aviso radicando personalmente o por medio de un abogado una comparecencia escrita y radicando en Ia Corte por escrito sus defensas de, y objecciones a, las demandas presentadas aqui en contra suya. Se le advierte de que si usted falla de tomar accibn como se describe anteriormente, el caso puede proceder sin usted y un fallo por cualquier suma de dinero reclamada en Ia demanda o cualquier otra reclamacion o remedio solicitado por el demandante puede ser dictado en contra suya por Ia Corte sin mas aviso adicional. Usted puede perder dinero o propiedad u otros derechos importantes para usted. USTED DEBE LLEVAR ESTE DOCUMENTO A SU ABOGADO INMEDIATAMENTE. SI USTED NO TIENE UN ABOGADO, LLAME 0 VAYA A LA SIGUIENTE OFICINA. ESTA OFICINA PUEDE PROVEERLE INFORMACION A CERCA DE COMO CONSEGUIR UN ABOGADO. SI USTED NO PUEDE PAGAR POR LOS SERVICIOS DE UN ABOGADO, ES POSIBLE QUE ESTA OFICINA LE PUEDA PROVEER INFORMACION SOBRE AGENCIAS QUE OFREZCAN SERVICIOS LEGALES SIN CARGO 0 BAJO COSTO A PERSONAS QUE CUALIFICAN. Cumberland County Bar Association Lawyer Referral and Information Service 32 South Bedford St. Carlisle, PA 17013 Telephone (717) 249-3166 Toll Free (800) 990-9108 Johnson, Duffle, Stewart & Weidner By: Mark C. Duffie I.D. No. 75906 301 Market Street P. O. Box 109 Lemoyne, Pennsylvania 17043-0109 (717) 761-4540 Attorneys for Plaintiff KAITLYNN F. BENSON IN THE COURT OF COMMON PLEAS OF 190 Melbourne Lane CUMBERLAND COUNTY, Mechanicsburg, PA 17055, PENNSYLVANIA Plaintiff v. MELBOURNE PLACE CONDOMINIUM ASSOCIATION, 1300 Market Street P.O. Box 622 Lemoyne, PA 17043 MICHELLE C. CRYTZER 105 Melbourne Lane Mechanicsburg, PA 17055 MICHAEL D. PATCH 126 Melbourne Lane Mechanicsburg, PA 17055 DENISE H. KOSER 111 Melbourne Lane Mechanicsburg, PA 17055 LOU ANN GUILLES 128 Melbourne Lane Mechanicsburg, PA 17055 CINDY CONNORS 195 Melbourne Lane Mechanicsburg, PA 17055, Defendants NO./if — 3 V& CIVIL ACTION FOR SPECIAL INJUNCTIVE RELIEF COMPLAINT FOR SPECIAL INJUNCTIVE RELIEF PURSUANT TO PA.R.C.P. 1531 AND NOW, comes the Plaintiff, Kaitlynne F. Benson, by and through her attorneys, Johnson, Duffle, Stewart & Weidner, and files this Complaint, and in support thereof avers as follows: 1. Kaitlynne F. Benson, is an adult individual who resides at 190 Melbourne Lane, Mechanicsburg, Pennsylvania 17055 (hereinafter, "Plaintiff"). 2. Defendant, Melbourne Place Condominium Association, is a Pennsylvania non-profit corporation with a registered address of 1300 Market Street, P.O. Box 6222, Lemoyne, Pennsylvania 17043 (hereinafter, the "Association"). 3. Defendant, Michelle C. Crytzer, is an adult individual residing at 105 Melbourne Lane, Mechanicsburg, Pennsylvania 17055 and at all times relevant to averments set forth herein was acting as the President of the Executive Board of the Association. 4. Defendant, Michael D. Patch, is an adult individual residing at 126 Melbourne Lane, Mechanicsburg, Pennsylvania 17055 and at all times relevant to averments set forth herein was acting as the Treasurer of the Executive Board of the Association. 5. Defendant, Denise H. Koser, is an adult individual residing at 111 Melbourne Lane, Mechanicsburg, Pennsylvania 17055 and at all times relevant to averments set forth herein was acting as the Secretary of the Executive Board of the Association. 6. Defendant, Lou Ann Gullies, is an adult individual formerly residing at 128 Melbourne Lane, Mechanicsburg, Pennsylvania 17055 and at all times relevant to averments set forth herein was a Member of the Executive Board of the Association. 7. Defendant, Cindy Connors, is an adult individual residing at 195 Melbourne Lane, Mechanicsburg, Pennsylvania 17055 and at all times relevant to averments set forth herein was a Member of the Executive Board of the Association. 8. Plaintiff, on December 27, 2010, purchased a condominium unit municipally known and numbered as 190 Melbourne Lane, Mechanicsburg, Pennsylvania 17055 ("Property"). Plaintiff purchased said Property from Kensington Arms Associates, a Pennsylvania limited partnership, by Deed dated December 14, 2010, and recorded in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania, on December 27, 2010 to Instrument No. 201038317. A true and correct copy of said Deed is attached hereto and incorporated herein as Exhibit "A". 9. Kensington Arms Associates, a Pennsylvania limited partnership, is the Declarant at Melbourne Place, A Townhome Condominium, established by Declaration of Condominium of Melbourne Place, A Townhome Condominium, dated March 28, 2006, and recorded in the Office of the Recorder of Deeds in and for Cumberland County on March 30, 2006, in Deed Book 725, Page 4313. Said Declaration has been subsequently amended for the purpose of converting convertible real estate. A true and correct copy of said Declaration is attached hereto and incorporated herein as Exhibit "B". 10. The Declaration, as amended, identifies the Property as Unit No. 19-190. 11. On or about December 23, 2013, Plaintiff listed the Property for sale with Jeff Chubb of Keller Williams of Central PA, located at 4242 Carlisle Pike, Camp Hill, Pennsylvania 17011. 12. Plaintiff entered into an Agreement of Sale on March 14, 2014, for the sale of the Property to Laura Anne Weakland. A true and correct copy of the Agreement of Sale is attached hereto and incorporated herein as Exhibit "C": 2 13. The Agreement of Sale provides in Paragraph 8 that the purchase is contingent upon Laura Anne Weakland's ability to obtain a mortgage through Wells Fargo on a conventional basis at a rate of 4.5% interest and at a minimum repayment term of thirty (30) years. 14. As part of the underwriting approval process, the underwriters at Wells Fargo sent a Condominium Project Underwriting Questionnaire (the "Questionnaire") to the Purchaser and to the Association to be completed outlining and requesting certain facts about the Condominium and its Association to allow the Lender to assess the Unit, the project and any attendant risk in said lending. A true and correct copy of said Questionnaire is attached hereto and incorporated herein as Exhibit "D". 15. The Association has entered into an agreement with Sterling Property Management, Inc., a Pennsylvania corporation, with a registered address of 1442 Trindle Road, Carlisle, Pennsylvania 17043, to manage and provide services on behalf of the Association. 16. Defendant Association, its individual Defendant Board Members and Sterling Property Management, Inc. acting on behalf of the Association refused to complete the Questionnaire as well as any questionnaires or provide any additional information over and above the standard Resale Certificate issued for Melbourne Place Condominium Association. A true and correct copy of said Resale Certificate pertaining to the Property is attached hereto and incorporated herein as Exhibit "E". 17. It is believed and therefore averred that most banks or mortgage companies lending money on a condominium unit with conventional mortgages require a similar questionnaire to be completed and signed by an officer or by an authorized representative of the condominium unit owners' association. 18. All FHA insured loans issued for the purchase of a condominium unit require that the community be certified for FHA loans. The lenders who issue the FHA insured loan require a similar questionnaire to be completed as well as the community certification. 3 19. Melbourne Place, A Townhome Condominium, was an FHA approved and certified community but that certification expired on May 4, 2014. It is believed and therefore averred that the Association has taken no steps towards renewing the FHA certification for the community and therefore no further FHA loans will be available to future purchasers. 20. The actions of the Defendant Association and its individual Defendant Executive Board Members have and will continue to prohibit prospective purchasers from obtaining loans to purchase Units in the community. 21. The actions of the Defendant Association and the individual Defendant Executive Board Members have reduced the pool of prospective purchasers to cash purchasers and as a result reduced the value of the units in the community. 22. It is believed and therefore averred that the Defendant Association and the individual Defendant's policy of refusing to complete the questionnaires is selectively implemented as Defendant Guilles, an Executive Board Member, had her buyer's questionnaire completed and recently closed on the sale of her Unit. 23. The Defendant Association's, and the individual Defendant Executive Board Members', refusal to complete the conventional loan Questionnaire has caused the Plaintiffs prospective purchaser, Laura Anne Weakland, to lose her mortgage commitment date of March 28, 2014. The settlement date was May 7, 2014 and the actions of the Defendant Association and the individual Defendant Executive Board Members have prevented the Buyer, Laura Anne Weakland, from obtaining a loan thereby terminating the Agreement of Sale. The closing date was extended by addendum to May 31, 2014. 24. Section 3303 of the Pennsylvania Condominium Act states, in part, that "The Executive Board may act in all instances on behalf of the Association. In the performance of their duties, the officers and members of the Executive Board shall stand in a fiduciary relation to the Association and shall perform their duties, including duties as members of an committee of the Board upon which they may serve, in good faith, in a manner they reasonably believe to be in the 4 best interests of the Association and with such care, including reasonable inquiry, skill and diligence, as a person of ordinary prudence would use under similar circumstances." 68 Pa.C.S. §3303(a). 25. Section 3303 of the Pennsylvania Condominium Act further states that "The Executive Board and its members shall have no liability for exercising their powers provided they are exercising good faith, in the best interests of the Association and with such care in the manner set forth in this Section." 68 Pa. C.S. §3303(a). 26. Section 3303 of the Pennsylvania Condominium Act goes on to state that "In performing his duties, and officer or and Executive Board member shall be entitled to rely in good faith on information, opinions, reports or statements, including financial statements and other financials data, in each case prepared or presented by any of the following: "(1) One or more other officers or employees of the Association whom the officer or Executive Board member reasonably believes to be reliable and competent in the manner presented. (2) Counsel, public accountants or other person as to matters which the officer or Executive Board member reasonably believes to be within the professional or expert competence of such person. (3) A committee of the Executive Board upon which he does not serve, duly designated in accordance with law, as to matters within its designated authority, which committee the officer or Executive Board member reasonably believes to merit confidence." 68 Pa.C.S. §3303(a)(1)(2) and (3) 27. Should the Defendant Association and the individual Defendant Board Members continue to refuse to provide the information required by the lender, the Plaintiff will lose her buyer and further be unable to sell her Unit to any prospective buyer who is borrowing money. 28. The Defendant Association's and the individual Board Members' action and/or inaction has caused and will cause immediate and irreparable injury to Plaintiff. 5 29. Section 3303(a) of the Pennsylvania Condominium Act insulates the Association and its members from liability and therefore any bonds required by Section 3303(b) would be unnecessary. WHEREFORE, Plaintiff respectfully requests this Honorable Court to enter an Order of Injunctive Relief against Defendant Association and the individual Defendant Board Members compelling them to complete the required questionnaire and provide all other information required by the lender to allow Plaintiff to sell her Unit. :621451 It Respectfully submitted, JOHNSON, DUFFIE, STEWART & WEIDNER By: ark uffie Attorney ID. No. 75906 301 Market Stree P.O. Box 109 Lemoyne, PA 17043-0109 Telephone (717) 761-4540 Attorneys for Plaintiff 6 VERIFICATION 1, Mark C. Duffle, attorney for Katelynn F. Benson, hereby certify that the matters asserted herein constitute matters of record, legal arguments and matters within the direct knowledge of counsel. The statements contained herein are true and correct to the best of the knowledge of the undersigned. This verification is made pursuant to the pr visions of 18 Pa.C.S.A. §4904. Date: '4( Mark C. DLIffi 7 EXHIBIT "A' n\ -`\41d\ 5017 DEED Cumberland County UPI #42-10-0646-089.-U190 190 Melbourne Lane 4,,011 Lek MADE the-oS ✓ day of 2010, RIR BETWEEN KENSINGTON ARMS ASSOCIATES, a Pennsylvania limited partnership ("Grantor), AND KAITLYNN E. FLANAGAN, an adult individual ("Grantee"): WITNESSETH That the Grantor, in consideration of One Hundred Forty -Six Thousand Nine Hundred Dollars ($146,900.00), paid by the Grantee to the Grantor, the receipt whereof is hereby acknowledged, does hereby grant and convey to the Grantee: ALL THAT CERTAIN Unit, being Unit No. 19-190 (the "Unit"), of Melbourne Place, A Townhome Condominium (the "Condominium"), located in Upper Allen Township, Cumberland County, Pennsylvania, which Unit is designated in the Declaration of Condominium of Melbourne Place, A Townhome Condominium (the "Declaration of Condominium") and Declaration Plats and Plans recorded in the Office of the Cumberland County Recorder of Deeds in Miscellaneous Book 725, Page 4313 and Right of Way Plan Book 13, Page 135 respectively, together with any and alt amendments thereto. TOGETHER with the undivided percentage interest in the Common Elements appurtenant to the Unit as more particularly set forth in the aforesaid Declaration of Condominium, as last amended. TOGETHER with the right to use the Limited Common Elements applicable to the Unit being conveyed herein, pursuant to the Declaration of Condominium and Declaration Plats and Plans, as last amended. UNDER AND SUBJECT to any and all covenants, conditions, restrictions, rights-of-way, easements and agreements of record in the aforesaid Office, the aforesaid Declaration of Condominium, and matters (A2207627:1) which a physical inspection and survey of the Unit and Common Elements would disclose. BEING part of the same premises which Stonehedge Lane Associates, by its deed dated November 14, 2005 and recorded in the Office of the Cumberland County Recorder of Deeds in Deed Book 271, Page 4715 granted and conveyed unto Kensington Arms Associates, Grantor herein. Being also part of the same premises which Linden R. Gates, Jr. by his deed dated November 14, 2005 and recorded in the Office of the Cumberland County Recorder of Deeds in Deed Book 271, Page 4710 granted and conveyed unto Kensington Arms Associates, Grantor herein. THE Grantee, for and on behalf of the Grantee and the Grantee's heirs, personal representatives, successors and assigns, by the acceptance of this Deed, covenants and agrees to pay all assessments, fees and/or charges as may be assessed against him, her, them, it, or said Unit, from time to time by the Executive Board of the Melbourne Place Condominium Association in accordance with the Uniform Condominium Act of Pennsylvania, and further covenants and agrees that the Unit conveyed by this Deed shall be subject to a lien for all amounts so assessed except insofar as Section 3407(c) of said Uniform Condominium Act may relieve a subsequent Unit Owner of liability for prior unpaid assessments. This covenant shall run with and bind the Unit hereby conveyed and all subsequent owners thereof. AND the Grantor shall and will SPECIALLY WARRANT the property hereby conveyed. IN WITNESS WHEREOF, the Grantor has caused this Deed to be executed as of the day and year first written above. ATTEST: {A2207627:1} KENSINGTON ARMS ASSOCIATES, a Pennsylvania limited partnership By: CAPITOL VIEW DEVELOPMENT CO., INC., General Partner By ' .4r! CDA - 4 Name: c C• 14no-S Title: (Vice) Pre d - t COMMONWEALTH OF PENNSYLVANIA tel COUNTY OF 1btx uLd SS: U On this, the i4 ' day of I\ULhrthVr , 2010, before me, a Notary Public, &tit/lel E c1-0 the undersigned officer, personally appeared who acknowledged himself to be the (Vice) President of CAPITOL VIEW DEVELOPMENT CO., INC., a Pennsylvania corporation (the "Corporation"), said Corporation being the General Partner of KENSINGTON ARMS ASSOCIATES, a Pennsylvania limited partnership (the "Partnership"), and that he as such officer, being authorized to do so pursuant to a resolution of the Corporation's board of directors dated May 7, 2007, a copy of which is recorded in Cumberland County Miscellaneous Book 736, Page 3777, executed the foregoing instrument for the purpose therein contained by signing the name of the Corporation by himself as such officer in the Corporation's capacity as General Partner and as authorized by the Partnership. IN WITNESS WHEREOF, I have hereunto set my hand and official seal. My commission expires:r4l4bt4 ary\ubli (SEAL) COMMONWEALTH OF PENNSYLVANIA Notarial Seal Stacey Nekligh, Notary Public Lemoyne Bao, Cumberland County My Comwdsslon Byres lily 12, 201 Member. Pennsylvania Association d Notaries I hereby certify that the precise address of the Grantee herein is: (A2207627:1) 190 Melbourne Lane Mechanicsburg, PA 17055 Attorney or Antee UPI #42-10-0646-089.-U190 MELBOURNE PLACE, A TOWNHOME CONDOMINIUM CERTIFICATE OF UNIT COMPLETION The undersigned, ROBERT J. FISHER, P.E., being a Professional Engineer License No. 033262-E, in accordance with Section 3414(d) of the Pennsylvania Uniform Condominium Act, 68 Pa. C.S. §3101, et sem., hereby certifies that Unit No. 19-190 contained within Melbourne Place, A Townhome Condominium, located in Upper Allen Township, Cumberland County, Pennsylvania, created pursuant to a certain Thirteenth Amendment to Declaration of Condominium dated March 26, 2010, and recorded in Cumberland County Instrument No. 201007700, is substantially completed. The Declaration of Condominium is recorded in Cumberland County Miscellaneous Book 725, Page 4313. I WITNESS WHEREOF, this Certificate of Unit Completion is executed this 11714 day of , 2010. COMMONWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND i Robert J s er, . E. SS. On this; the Zc1'" day of lac cywheJ , 2010, before me, the undersigned officer, personally appeared Robert J. Fisher, P.E., known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument, and acknowledged that he executed the same for the purpose therein contained. IN WITNESS WHEREOF, I have hereunto set my hand and official seal. After recording, return to: IA2934404:1} Notary Public (SEAL) COMMONWEALTH OF PENNSYLVANIA Notarial Seal Usti R. Barker, Notary Public City of Harrisburg, Dauphin County My Commission Expires Nov. 5, 2012 ROBERT P. ZIEGLER RECORDER OF DEEDS CUMBERLAND COUNTY 1 COURTHOUSE SQUARE CARLISLE, PA 17013 717-240-6370 Instrument Number - 201038317 Recorded On 12/27/2010 At 2:35:38 PM * Instrument Type - DEED Invoice Number - 79278 User ID - ES * Grantor - KENSINGTON ARMS ASSOCIATES * Grantee - FLANAGAN, KAITLYNN E * Customer - RICHARD MISLITSKY *FEES STATE TRANSFER TAX $1,469.00 STATE WRIT TAX $0.50 STATE JCS/ACCESS TO $23.50 JUSTICE s. RECORDING FEES — $11.50 RECORDER OF DEEDS PARCEL CERTIFICATION $10.00 FEES AFFORDABLE HOUSING $11.50 COUNTY ARCHIVES FEE $2.00 ROD ARCHIVES FEE $3.00 MECHANICSBURG SCHOOL $734.50 DISTRICT UPPER ALLEN TOWNSHIP $734.50 TOTAL PAID $3,000.00 *Total Pages - 5 Certification Page DO NOT DETACH This page is now part of this legal document. I Certify this to be recorded in Cumberland County PA RECORDER OF DDS * - Information denoted by an asterisk may change during the verification process and may not be reflected on this page. Hilihl IIIIII 11 111 EXHIBIT "B" RECORD '`",LER CUt.!$ERL�ND?' 'COUJtEDS 2006 BAR 30 TY -PA 0� 10 2? DECLARATION OF CONDOMINIUM OF MELBOURNE PLACE, A TOWNHOME CONDOMINIUM Pursuant to the provisions of the Pennsylvania Uniform Condominium Act, 68 Pa. C.S. §3101 et seq. Prepared by: Robert M. Cherry, Esquire McNees, Wallace & Nurick 100 Pine Street Harrisburg, PA 17101 email: rcherry©mwn.com (A771451:} 0125P643 ! 3 Date: March 28, 2006 DECLARATION OF CONDOMINIUM OF MELBOURNE PLACE, A TOWNHOME CONDOMINIUM Table of Contents ARTICLE I 1 SUBMISSION; DEFINED TERMS 1 1.1. Declarant; Property; County; Name 1 1.2. Easements and Licenses 1 1.3. Defined Terms 2 1.4. Provisions of the Act 5 ARTICLE II 5 ALLOCATION OF PERCENTAGE INTERESTS, VOTES AND COMMON EXPENSE LIABILITIES; UNIT IDENTIFICATION AND BOUNDARIES 5 2.1. Percentage Interests, Votes and Common Expense Liabilities 5 2.2. Unit Boundaries 6 ARTICLE III 8 RELOCATION OF BOUNDARIES; SUBDIVIDING UNITS 8 3.1. Subdividing Units 8 3.2. Relocating Boundaries Between Adjoining Units 8 3.3. Subdividing a Combined Unit 8 3.4. Costs of Relocating Unit Boundaries or Subdividing Combined Units 9 ARTICLE IV g LIMITED COMMON ELEMENTS; RESERVED COMMON ELEMENTS 9 4.1. Description of Limited Common Elements 9 4.2. Parking Spaces 9 4.3. Designation of Reserved Common Elements 9 4.4. Assignment of Limited Common Elements 10 ARTICLE V 10 ADDITIONS, ALTERATIONS AND IMPROVEMENTS 10 5.1. Additions, Alterations and Improvements by Unit Owners 10 5.2. Additions, Alterations and Improvements by Executive Board 12 ARTICLE VI 12 MAINTENANCE, REPAIR AND REPLACEMENT RESPONSIBILITIES 12 6.1. Maintenance Responsibilities 12 6.2. Common Elements 12 6.3. Units and Limited Common Elements 12 6.4. Chart of Maintenance Responsibilities 12 6.5. Repairs Resulting From Negligence 12 `O725PG431 k {A771451:) 6.6. Access 12 6.7. Watering of Shrubs and Lawns 13 6.8. Failure to Maintain 13 6.9. Cost of Township's Maintenance Activities 14 ARTICLE VII " 14 EASEMENTS 14 7.1. Additional Easements 14 7.1.1. Declarant's Use for Sales Purposes 14 7.1.2. , Utility Easements 14 7.1.3. Declarant's Easement to Correct Drainage 15 7.1.4. Association's Easement to Inspect and Maintain Units and Limited Common Elements 15 7.1.5. Easements in Favor of Units Benefited 15 7.1.6. Easement for Structural Support 16 7.1.7. Easement for Decorating, Cleaning and Maintaining Certain Surfaces 16 7.1.8. Declarant's Easement to Facilitate Completion, Conversion and Expansion 17 7.1.9. Declarant's Reservation of Right to Grant Easements 17 7.1.10. Easement for Encroachments 17 7.1.11. Unit Owner's Use for Construction Purposes 18 ARTICLE VI I I 18 USE RESTRICTIONS 18 8.1. Use and Occupancy of Units, Limited Common Elements and Common Elements 18 8.1.1. ° Permitted Use 18 8.1.2. _` No Unlawful Purposes 18 8.1.3. Satellite Dishes; Antennas 19 8.1.4. Rules and Regulations 20 ARTICLE IX 21 LEASING 21 9.1. Leases 21 9.2. Exceptions 21 ARTICLE X 22 ASSESSMENT AND COLLECTION OF COMMON EXPENSES, INCLUDING LIMITED COMMON EXPENSES; OTHER ASSESSMENTS 22 10.1. Definition of Common Expenses 22 10.2. Apportionment of Common Expenses 22 10.3. Special Allocations of Expenses as Limited Common Expenses 22 10.4. Initial Conveyance Assessment 23 10.5. Lien 23 10.6. Budget Adoption 24 10.7. Adoption of Non -Budgeted Common Expense Assessments 25 10.8. Certificate of Payment of Common Expense Assessments 25 10.9. Monthly Payment of Common Expenses 25 (O725PG43I5 (A771451:} ii 10.10. Acceleration of Common Expense Assessments 25 10.11. Commencement of Common Expense Assessments 25 10.12. Personal Liability of Unit Owners 25 10.13. No Waiver of Liability for Common Expenses 25 10.14. Surplus Funds 26 10.15. Association Records 26 ARTICLE XI 26 MORTGAGEE PROTECTIONS 26 11.1. Introduction 26 11.2. Percentage of Eligible Mortgagees 26 11.3. Notice of Actions 26 11.4. Consent and Notice Required 27 11.4.1. Document Changes 27 11.4.2.;: Actions 27 11.4.3.` Implied Approval 28 11.5. Special Declarant Rights 28 11.6. Inspection of Books 28 11.7. Enforcement 28 11.8. Appointment of Trustee 28 ARTICLE XII 28 DECLARANT CONTROL OF THE ASSOCIATION AND SPECIAL DECLARANT RIGHTS 28 12.1. Control of the Association 28 12.2. Special Declarant Rights 29 ARTICLE XIII` 29 LIMITATION OF LIABILITY 29 13.1. Limited Liability of the Executive Board Members of the Association 29 13.2. Indemnification of Executive Board Members and Officers of the Association ...t, 30 13.2.1. Third Party Actions 30 13.2.2! Derivative Actions 30 13.2.3. Procedure for Effecting Indemnification 30 13.2.4. Expenses Advanced 30 13.2.5. Indemnification of Other Persons 30 13.3. Indemnification Insurance 31 ARTICLE XIV 31 INSURANCE 31 14.1. Coverage 31 14.2. Property Insurance 31 14.2.1.; Project Facilities 31 14.2.2.; Amounts 31 14.2.3.;. Risks Insured Against 32 14.2.4. Other Provisions 32 14.3. Liability Insurance 33 14.3.1:Other Provisions 33 t0725PG4316 (A771451:} 14.4. Fidelity Bonds 33 14.5. Unit Owner Policies 34 14.6. Worker's Compensation Insurance 34 14.7. Directors' and Officers' Liability Insurance 34 14.8. Other Insurance 34 14.9. Premiums and Deductibles 34 ARTICLE XV 34 DAMAGE TO OR DESTRUCTION OF PROPERTY 34 15.1. Duty to Restore 34 15.2. Cost 34 15.3. Plans 35 15.4. Replacement of Less Than Entire Property 35 15.5. Insurance Proceeds 35 15.6. Certificates by the Executive Board 36 15.7. Certificates by Attorneys 36 ARTICLE XVI 36 AMENDMENTS TO DECLARATION 36 16.1. Amendment Generally 36 16.2. Lithitation of Challenges 36 16.3. Recordation of Amendments 36 16.4. When Unanimous Consent Required 36 16.5. Execution of Amendments 37 16.6. Special Declarant Rights 37 16.7. Consent of Holders of Security Interests 37 16.8. Corrective Amendments 37 ARTICLE XVII 37 AMENDMENTS TO BYLAWS 37 17.1. Amendments to Bylaws 37 ARTICLE XVIII 38 RIGHTS TO NOTICE AND COMMENT; NOTICE AND HEARING 38 18.1. Right to Notice and Comment 38 18.2. Right to Notice and Hearing 38 18.3. Appeals 38 ARTICLE XIX 38 CONVERTIBLE REAL ESTATE 38 19.1. Reservation 38 19.2. Assurances 39 ARTICLE XX 39 WITHDRAWABLE REAL ESTATE 39 20.1. Reservation to Withdraw 39 20.2. Easements Regarding Withdrawable Real Estate 40 (A771451 :} ©725PG4311 iv ARTICLE XXI 41 OPTION TO EXPAND THE CONDOMINIUM 41 21.1. Reservation to Expand 41 21.2. Assurances 41 ARTICLE XXII 42 POWERS OF THE ASSOCIATION 42 22.1. Powers of the Association 42 22.2. Merger of Consolidation 42 22.3. Conveyance or Encumbrance of the Common Elements 42 22.4. Judgments Against the Association 42 ARTICLE XXIII 43 TERMINATION OF THE CONDOMINIUM 43 23.1. Procedure for Termination 43 ARTICLE XXIV 43 INTERPRETATION 43 24.1. Interpretation 43 ARTICLE XXV 43 SEVERABILITY 43 25.1. Severability 43 ARTICLE XXVI 44 EFFECTIVE DATE 44 26.1. Effective Date 44 EXHIBIT A - LEGAL DESCRIPTION OF THE REAL ESTATE EXHIBIT B - INTENTIONALLY OMITTED EXHIBIT C - PLATS AND PLANS EXHIBIT D - LEGAL DESCRIPTION OF THE CONVERTIBLE AND WITHDRAWABLE REAL ESTATE EXHIBIT E - L:EGAL DESCRIPTION OF THE ADDITIONAL REAL ESTATE Mt 72-5PG43.1.8 (A711451:) DECLARATION OF CONDOMINIUM FOR MELBOURNE PLACE, A TOWNHOME CONDOMINIUM ARTICLE I SUBMISSION; DEFINED TERMS Section 1.1. Declarant; Property; County; Name. Kensington Arms Associates, a Pennsylvania limited partnership (the "Declarant"), owner in fee simple of the Real Estate described in Exhibit A attached hereto, located in Upper Allen Township, Cumberland County, Pennsylvania, hereby submits the Real Estate, including all easements, rights and appurtenances thereunto belonging and the Buildings and improvements erected or to be erected thereon (collectively, the "Property") to the provisions of the Pennsylvania Uniform Condominium Act, 68 Pa. C.S. §3101 et seq., as amended (the "Act"), and hereby creates with respect to the Property a flexible condominium to be known as "Melbourne Place, A Townhome Condominium" (the "Condominium"). Section 1.2. Easements and Licenses. Included among the easements, rights and appurtenances referred to in Section 1.1 above are the following recorded easements, rights and licenses: 1.2.1. Rights granted to Mechanicsburg Water Co. in Misc. Book 222, Page 248. 1.2.2. Rights granted to PP&L in Misc. Books 126, Page 267; 677, Page 420; and 700, Page 4761. 1.2.3. Conditions set forth on all subdivision and land development plans for the Property, now or hereafter existing, as the same may be amended or modified by Declarant from time to time in accordance with Upper Allen Township and other applicable governmental requirements, including, but not limited to, the Final Subdivision/Land Development Plan for Phase 1 of Kensington Place, recorded in Cumberland County Plan Book 91, Page 88 (collectively, the "Subdivision/Land Development Plan"). 1.2.4. Conditions set forth in Sanitary Sewer Easement Agreement in Misc. Book 216, Page 463. :1.2.5. Rights granted to United Electric Company in Misc. Book 53, Pages 72, 74 and 76. 464. (A771451:} 1.2.6. Rights granted to Comcast Cable, Inc. in Misc. Book 680, Page m(0725PG4319 :1.2.7. Rights granted to Verizon in Misc. Book 681, Page 2917; and 706, Page 2872. 11. 1.2.8. Subject to Deed of Dedication as set forth in Deed Book 250, Page 1.2.9. Subject to a Declaration of Reciprocal Easements in Misc. Book 708, Page 4545. 1.2.10. Conditions shown on Plan Book 42, Page 128. 1.2.11. Rights granted to Sinclair Refining Company in Miscellaneous Book 75, Page 326, as last assigned in Book 377, Page 232. 1.2.12. Rights granted to Socony Vacuum Oil Company in Miscellaneous Book 81, Page 552. Rights granted in Amended and Restated Sanitary Sewer, Storm Sewer and Utility Easement in Miscellaneous Book 293, Page 1184. 1.2.14. Public and private rights in and to that portion of the Property lying in the bed of the public road known as Allendale Road. Section 1.3. Defined Terms. 1.3.1. Capitalized terms not otherwise defined herein or in the Plats and Plans shall have the meanings specified or used in the Act. 1.3.2. The following terms when used herein shall have the meanings set forth below: (a) "Additional Real Estate" means the Real Estate described in Exhibit E attached hereto, so long as the Declarant's rights to add such Real Estate to the Condominium continue to exist. (b) "Annual Assessment" means a Unit's individual share of the anticipated Common Expenses for each fiscal year as reflected in the budget adopted by the Executive Board for such year. (c) "Association" means the Unit Owners' Association of the Condominium, which shall be a Pennsylvania non-profit corporation known as "Melbourne Place Condominium Association" and shall have all powers and duties designated by the Act. (A771451:} 1107225PG4320 (d) "Building(s)" means any or all of the building(s) now or hereafter included in the Property. (e) "Bylaws" means the document having that name and providing for the governance of the Association, pursuant to Section 3306 of the Act, as such document may be amended from time to time. (f) "Combined Unit" means the Unit that is created when two or more entire adjacent Units are combined pursuant to Section 3.2 hereof. (g) "Common Elements" means those parts of the Property either described in the Act as being Common Elements or described herein or in the Plats and Plans as being Common Elements. (h) "Condominium" means the Condominium described in Section 1.1 above. (i) "Condominium Documents" include the Declaration, Plats and Plans, Bylaws and Rules and Regulations. (j) "Convertible Real Estate" means the Real Estate described in Exhibit D attached hereto, so long as the Declarant's rights to create Units and/or Limited Common Elements therein continue to exist. (k) "Declarant" means the Declarant described in Section 1.1 above and all successors to any Special Declarant Rights. (I) "Declaration" means this document, as the same may be amended from time to time. (m) "Eligible Insurer" means an insurer or guarantor of a first Security Interest in a Unit which has notified the Association in writing of its name and address and that it has insured or guaranteed a first Security Interest in a Unit and the Unit number and address of the Unit which is encumbered by the Security Interest that it has insured or guaranteed. Such notice shall be deemed to include a request that the Eligible Insurer be given the notices and other rights described in Article Xl. ,(n) "Eligible Mortgagee" means the holder of a first Security Interest in a Unit which has notified the Association, in writing, of its name and address, and that it holds a first Security Interest in a Unit, and the Unit number and address of the Unit on which it has a Security Interest. Such notice shall be deemed to include a request that the Eligible Mortgagee be given the notices and other rights described in Article Xl. (A771451;) 0725PG43213" I (o) "Executive Board" means the Executive Board of the Association. (p) "First Settlement" means the date of the first closing whereby a Unit is conveyed to a Unit Owner other than Declarant. (q) "Limited Common Elements" means those parts of the Common Elements either described in the Act as being Limited Common Elements or described herein or in the Plats and Plans as being Limited Common Elements allocated for the exclusive use of one or more but fewer than all of the Units. (r) "Notice and Comment" means the right of a Unit Owner to receive notice of an action proposed to be taken by or on behalf of the Association, and the right to comment thereon. The procedures for Notice and Comment are set forth in Section 18.1 of this Declaration. (s) "Notice and Hearing" means the right of a Unit Owner to receive notice of an action proposed to be taken by the Association, and the right to be heard thereon. The procedures for Notice and Hearing are set forth in Section 18.2 of this Declaration. (t) "Party Wall" means a wall located at the perimeter of a Unit, which is a common wall shared with an adjacent Unit. (u) "Percentage Interest" appurtenant to a Unit means the undivided interest in the Common Elements appurtenant to such Unit, as calculated pursuant to the formula set forth in Section 2.1 herein. (v) "Perimeter Wall" shall mean any wall located at the perimeter of a Unit, which wall is adjacent to either the exterior of a Building or any Common Element or Limited Common Element. (w) "Plats and Plans" means the Plats and Plans attached hereto as Exhibit C and made a part hereof, as the same may be amended from time to time. (x) "Property" means the Property described in Section 1.1 above.; {y) "Rules and Regulations" means such rules and regulations as are promulgated by the Executive Board from time to time with respect to various details of the use of all or any portion of the Property, either supplejmenting or elaborating upon the provisions in the Declaration or the Bylaws. {A771451:) BKO725PG4322 -4 0 � (z) "Security Interest" means an interest in real property or personal property, created by contract or conveyance, which secures payment or performance of an obligation. The term includes a lien created by a mortgage, land sales contract, and any other consensual lien or title retention contract intended as security for an obligation. (aa) "Special Assessment" means a Unit's individual share of any assessment made by the Executive Board in addition to the Annual Assessment. (bb) "Unit" means a Unit as described herein and in the Plats and Plans. (cc) "Unit Owner" means the holder of legal title to a Unit. (dd) "Unit -Side Surface" means the surface of a ceiling, floor, Party Wall or Perimeter Wall that is adjacent to the interior space within a Unit. (ee) "Unit Title Lines" or sometimes "Unit Boundaries" means the boundaries of each Unit as shown on the Plats and Plans and as described herein. (ff) 'Withdrawable Real Estate" means the Real Estate described in Exhibit D attached hereto, so long as the Declarant's rights to withdraw such Real Estate from the Condominium continue to exist. Section 1.4. Provisions of the Act. The provisions of the Act shall apply to and govern the operation and governance of the Condominium, except to the extent that contrary provisions, not prohibited by the Act, are contained in one or more of this Declaration, the Plats and Plans or the Bylaws. ARTICLE II ALLOCATION OF PERCENTAGE INTERESTS, VOTES AND COMMON EXPENSE LIABILITIES; UNIT IDENTIFICATION AND BOUNDARIES Section 2.1. Percentage Interests. Votes and Common Expense Liabilities. 2.1.1. No Units or Limited Common Elements are being created with the recording of this Declaration. At such time as Declarant exercises its option to convert all or any portion of the Convertible Real Estate in accordance with Section 3211 of the Act and Article XIX hereof, Declarant shall record an amendment to this Declaration {A771451:) 0725PG43235- setting forth the Identifying Number and the Percentage Interest appurtenant to each Unit. The Percentage Interest of a Unit shall be determined on the basis that all Units shall be assigned a factor of 1.0. A Unit's Percentage Interest shall be calculated by converting a fraction to a decimal, the numerator of which fraction is one (1) and the denominator of which fraction is the total number of Units then currently existing within the Condominium. 2.1.2. The Percentage Interest shall automatically change upon conversion of Convertible Real Estate as set forth in Article XIX below, and the new Percentage Interest of each Unit existing after such conversion shall be determined in accordance with Section 2.1.1 above. Notwithstanding the foregoing, if the Declarant converts all or any portion of the Convertible Real Estate Into Units, the Declarant reserves the right to assign a factor ranging from between 0.8 and 1.2 to any Units created therein based reasonably upon the relative square footage of the Units and any other relevant characteristics of such additional Units such as the presence of amenities. The Declarant shall designate the factor to be assigned to Units in the Condominium in any amendment to Declaration in which additional Units are created. The Declarant's judgment regarding the factor assigned to any such additional Units shall be final., 2.1.3. The Percentage Interest shall determine the Percentage Interest in the Common°:Elements, the number of votes in the Association and the share of Common Expense Liability appurtenant to each Unit. A Unit's Percentage Interest shall always be appurtenant to that Unit, and any separate conveyance, encumbrance, judicial sale or other transfer of such Percentage Interest, whether voluntary or involuntary, shall be void unless the Unit to which the Percentage Interest is allocated is also transferred. Section 2.2. Unit Boundaries. 2.2.1. The Unit Title Lines or boundaries of each Unit are situated as shown on the; Plats and Plans, and each Unit lies within the following boundaries: ;(a) Upper and Lower (Horizontal) Boundaries: The upper and lower boundaries of the Unit shall be the following boundaries extended to intersections with the Vertical Boundaries: {A771451:} (1) Upper Boundary: The horizontal planes ,formed by the Unit -Side Surface of the uppermost ceiling of the Unit. (2) Lower Boundary: The horizontal plane of the top surface of the unfinished concrete floor slab or basement floor. .0:725P04321-6- (b) Vertical Boundaries: The vertical boundaries of the Unit shall be the vertical planes of the Unit -Side Surface of the Perimeter Walls and Party Walls which enclose the Unit, extended to intersections with each other and with the Upper and Lower Boundaries. 2.2.2. Each Unit consists of all portions of the Building within the aforesaid Unit Title Lines, except: (i) structural members and bearing columns within or passing through such Unit which are deemed to be Common Elements; and (ii) other Common Elements within such Unit Including, without limitation, chutes, flues, ducts, wires, conduits and pipe runs which serve more than one Unit. With respect to such chutes, flues, ducts, wires, conduits and pipe runs, the provisions of Section 3202(2) of the Act shall apply. There is included within a Unit (by way of illustration and not limitation): (a) The air space enclosed within such Unit Title Lines. (b) All non-bearing partitions which are wholly contained within such Unit Title Lines, including (but not limited to) all doors, door frames, hardware, windows, window frames, tracks and sills, electrical outlets and wiring, television cable facilities, telephone outlets and conduits, and other equipment and devices in such partitions serving only such Unit. -(c) All plumbing fixtures located within such Unit Title Lines and serving and affecting only such Unit, and their water and waste connections. {d) All items of kitchen equipment located within such Unit Title Lines and serving only such Unit, and such equipment's water, waste and electrical connections. (e) Exhaust fans and the grilles, registers, ventilation ducts and related fixtures which serve only such Unit, whether or not any of the foregoing is located in any portion of the Common Elements. (f) Lighting devices (including, by way of illustration and not limitation, lamps and bulbs which are surface mounted on, recessed in, or suspended from, ceilings, walls and partitions within or on the perimeter of such Unit) serving only such Unit whether or not such lighting devices are themselves located entirely within the Unit Title Lines of such Unit. '(g) Outlets, wires, cables, conduits, circuits and related equipment transmitting electricity for lighting and power or transmitting electrical impulses and signals (including, but not limited to, impulses and signals for telephone and television transmission, except to the extent otherwise specifically provided herein) which serve only such Unit and which are located entirely within the Unit Title Lines of such Unit. {A771451:} $:O7.25.PG4325 -7- (h) Surface -mounted and recessed cabinets (including, by way of illustration and not limitation, all associated lighting fixtures and accessories). (i) Refrigerators, ovens, ranges, dishwashers, garbage disposal units, water heaters, heating and air conditioning systems and components, fireplaces, if available, and all related fixtures and gas service equipment, washers and dryers, and any other appliances and the portions of their water, waste, electrical, gas and exhaust connections located within such Unit Title Lines and serving only such Unit. U) floor. Floor coverings installed on the Unit -Side Surface of the ARTICLE III RELOCATION OF BOUNDARIES; SUBDIVIDING UNITS Section 3.1. Subdividing Units. No Unit may be subdivided, except a Combined Unit as provided in Section 3.3 hereof. Section 3.2. Relocating Boundaries Between Adioinino Units. Unit Owners desiring to relocate the boundaries between adjoining Units shall submit an application to the Association in accordance with Section 3214 of the Act, and the Association shall have the powers and duties with respect to such application as set forth therein. Upon such application, two or more entire adjacent Units may be combined into a larger Unit, provided that both of the Units being combined are under common ownership at the time of effecting such combination. Upon the completion of such combination, the Percentage Interest in the Common Elements appertaining to such Combined Unit shall be the sum of the respective Percentage Interests in the Common Elements appertaining to each of the Units that have been combined. The Identifying Number of the Combined Unit shall consist of the number of the Unit having the lowest numbered Identifying Number followed by a hyphen and the Identifying Number of the other individual Unit, arranged in numerical order. By way of illustration, if Units having Identifying Numbers of "2" and "3" were to be combined, the identifying Number of the Combined Unit would be "2-3". Section 3.3. Subdividing a Combined Unit. A Unit Owner of a Combined Unit desiring to subdivide the Combined Unit in accordance with the Unit Title Lines of the original Units combined to create the Combined Unit shall submit an application to the Association irk accordance with Section 3215 of the Act, and the Association shall have the powers and duties with respect to such application as set forth therein, provided that the Combined Unit is under single ownership until after the time of effecting such subdivision. After such subdivision, the resulting individual Units shall carry the Identifying Numbers shown for such respective Units in the Plats and Plans prior to the (A771451:) BK0725PG4326 -8 creation of the Combined Unit. The respective Percentage Interests appertaining to such separate Units, and the number of votes in the Association shall be determined in accordance with Section 2.1 hereof. Section 3.4. Costs of Relocating Unit Boundaries or Subdividing Combined Units. All costs and expenses associated with relocating Unit Boundaries or subdividing a Combined Unit and, at the discretion of the Executive Board, the costs and expenses associated with preparing and recording any amendment to the Declaration and Plats and Plans required pursuant to Sections 3214 or 3215 of the Act, shall be the responsibility of the Unit Owner or Owners requesting the relocation of Unit Boundaries or the subdivision of a Combined Unit, as the case may be. ARTICLE IV LIMITED COMMON ELEMENTS; RESERVED COMMON ELEMENTS Section 4.1. Description of Limited Common Elements. Those portions of the Common Elements serving only the Unit or Units adjacent to such Common Element are Limited Common Elements allocated only to the Unit or Units which they serve. Without limiting the generality of Section 1.3.2(q) hereof, the following portions of the Property are hereby designated as Limited Common Elements: (a) Any balconies, patios, porches, decks, stoops and service walks adjacent to Units; and (b) Any space heating, water heating and air conditioning apparatus (including, by way of illustration, any air conditioner compressor, propane tank or other mechanical or service system or equipment, if any, located outside of a Unit and serving one Unit exclusively); and (c) Privacy fences, if any, adjacent to Units; and '(d) Any other areas shown and identified as such on the Plats and Plans. FI Section 4.2. Parking Spaces. Parking spaces are Common Elements available to all Unit Owners, visitors, guests and invitees on a first come first served basis, subject to the rights of the Executive Board to promulgate Rules and Regulations regarding their use. Section 4.3. Designation of Reserved Common Elements. Reserved Common Elements are those parts of the Common Elements which the Executive Board may designate from time to time for use by fewer than all of the Unit Owners or by only those {A771451:1 -9- BKO725PG4327 persons paying fees or complying with other reasonable conditions for use as may be established by the Executive Board. Section 4.4. Assignment of Limited Common Elements. The Declarant (or the Association, upon transfer of control pursuant to Subsection 12.1.3 hereof) reserves the right to allocate any Common Elements shown on the Plats and Plans as Limited Common Elements serving one or more adjacent Units or serving the Units located within an adjacent Building. ARTICLE V ADDITIONS, ALTERATIONS AND IMPROVEMENTS Section 5.1. Additions, Alterations and Improvements by Unit Owners. 5.1.1. A Unit Owner. (a) May make any improvements or alterations to the interior of his Unit that do not impair the structural integrity or mechanical systems or lessenthe support of any portion of the Condominium; (b) May not change the appearance of the Common Elements, or the exterior appearance of a Unit or any other portion of the Condominium, without permission of the Executive Board; (c) Subject to Section 3.2 hereof, after acquiring an adjoining Unit, may remove or alter any intervening partition or create apertures therein, even if the partition in whole or in part is a Common Element, if those acts do not impair the structural integrity or mechanical systems or lessen the support of any portion of the Condominium. (d) May not undertake the installation, reinstallation, removal, modification, reconstruction or repair of any Party Wall, any electrical, lighting, signal transmission and/or power circuit or system, or electric outlet box or terminal device included in such outlet box, or any item of heating or air conditioning equipment, or any ventilation or exhaust duct or related equipment, or any item of any portion of the plumbing system, any of which in any way serves or could affect any other Unit Owner, until after application has been made to and written approval has been received from tI a Executive Board and any Unit Owner(s) affected by such installation, reinstallation, removal, reconstruction or repair. Such approval shall be granted only if the work performed shall be of similar or superior quality to that then prevailing in the Building and shall be performed by qualified personnel. The cost of such installation, reinstallation, removal, reconstruction or repair, whether undertaken by a {A771451:} BK0725PG43.28 -10- Unit Owner or by the Association (under procedures to be established by the Executive Board) shall be borne by the Unit Owner of the Unit benefited thereby. 5.1.2. Subject to Section 5.1.6, a Unit Owner may submit a written request to the Executive Board for approval to do anything that he or she is forbidden to do under Subsections 5.1.1(b) or (d). The Executive Board shall answer any written request for such approval, after Notice and Hearing, within sixty (60) days after the request thereof. Failure to do so within such time shall not constitute a consent by the Executive Board to the proposed action. The Executive Board shall review requests in accordance with the provisions of the Condominium Documents. Following the completion of any alteration to a Common Element pursuant to the approval of th'e Executive Board (such as the installation of a door or window in a Perimeter Wall), the Executive Board may allocate a portion of the affected Common Element to the Unit Owner as a Limited Common Element. The Executive Board shall make such allocation by recording an appropriate amendment to this Declaration and to the Plats and Plans showing the area being allocated as a Limited Common Element. All expenses associated with the alteration itself and with preparation and recording of any required amendments shall be the responsibility of the Unit Owner making the alteration, in addition to any expenses incurred pursuant to Section 5.1.3. herein. 5.1.3. Any applications to any department or to any governmental authority for a permit to make any addition, alteration or improvement in or to any Unit shall be the responsibility of and executed by the Unit Owner. Such execution will not, under any circumstances, create any liability on the part of the Association or any of its members, other than the Unit Owner making such application, to any contractor, subcontractor or materialman on account of such addition, alteration or improvement or to any persori having any claim for injury to person or damage to property arising therefrom. All costs incurred for such additions, alterations and improvements by a Unit Owner to any;, portion of the Property shall be the responsibility of such Unit Owner. 5.1.4. All additions, alterations and improvements to the Units and Common Elements shall not, except pursuant to prior approval by the Executive Board, cause any increase in the premium of any insurance policies carried by the Association or by the owners of any Units other than those affected by such change. 5.1.5 If a Unit Owner makes additions, alterations or improvements to any part of the Project Facilities (as defined in Subsection 14.2.1 hereof) that would typically be insured by the Association as part of the property insurance maintained by the Associatipn, such Unit Owner shall promptly notify the Association in writing of all such additions, alterations or improvements, and, at the discretion of the Executive Board, shall pay any additional insurance premiums which may be due as a result of the additions, alterations or improvements. {A771451:) O725PG4329 -11- 5.1.6 The provisions of this Section 5.1 shall not apply to the Declarant in the exercise of any Special Declarant Right. Section 5.2. Additions. Alterations and improvements by Executive Board. Subject to the limitations of Section 10.6 and 10.7 of this Declaration, the Executive Board may make any additions, alterations or improvements to the Common Elements which, in its judgment, it deems necessary. ARTICLE VI MAINTENANCE, REPAIR AND REPLACEMENT RESPONSIBILITIES Section 6.1. Maintenance Responsibilities. Notwithstanding the ownership of the various portions of the Common Elements and the Units, the Units and Common Elements shall be maintained and repaired by each Unit Owner and by the Association in accordance with the provisions of Section 3307 of the Act, except as expressly set forth to the contrary in the Condominium Documents. Section 6.2. Common Elements. The Association shall maintain, repair and replace all of the Common Elements, except the portions of the Limited Common Elements which are required by this Declaration or the Bylaws to be maintained, repaired or replaced by the Unit Owners. Section 6.3. Units and Limited Common Elements. Each Unit Owner shall maintain, repair and replace, at his or her own expense, all portions of his or her Unit, and the Limited Common Elements appurtenant thereto, except the portions thereof to be maintained, repaired or replaced by the Association. Section 6.4. Chart of Maintenance Responsibilities. The respective responsibilities of the Association and the Unit Owners with respect to maintenance, repair and replacement are set forth in the Chart of Maintenance Responsibilities attached as Exhibit "A" to the Bylaws, as amended from time to time. } Section 6.5. Repairs Resulting From Neclicence. Each Unit Owner shall reimburse the Association and any Unit Owners whose Units were damaged for any damages to the Common Elements or to any other Unit caused intentionally, negligently or by his or her failure to properly maintain, repair or make replacements to his or her Unit or to Limited Common Elements which are the responsibility of such Unit Owner. The Association shall be responsible for damage to Units caused intentionally, negligently or by its failure to maintain, repair or make replacements to the Common Elements, except for any Limited Common Elements which are required by the Condominium Documents to be maintained, repaired or replaced by Unit Owners. Section 6.6. Access. Any person authorized by the Executive Board shall have the right of access to all portions of the Property upon such notice, if any, as shall be (A771451:} a725P04330 -12- T reasonable under the circumstances for the purpose of correcting any condition threatening a .Unit or the Common Elements; for the purpose of performing installations, alterations, maintenance or repairs; for the purpose of reading, repairing, replacing utility meters and related pipes, valves, wires and equipment; for the purpose of performing pest control inspections and treatment; and for any other proper purpose, provided that all requests for entry are made in advance and that any such entry is at a time reasonably convenient to the affected Unit Owner. In case of an emergency, no such request or notice is required and such right of entry shall be immediate, whether or not the Unit Owner is present at the time. Section 6.7. Waterino of Shrubs and Lawns. Since the Association does not maintain, in its name, any extemal water spigots, Unit Owners may be required to permit the use of their outside water spigots for lawn and/or shrub watering or other proper purposes by the Association maintenance personnel. Procedures shall be promulgated as necessary by the Executive Board. Section 6.8. Failure to Maintain. If the Association shall fail to maintain those portions of the Common Elements for which it is responsible, other than portions of Buildings that are Common Elements, in safe order and condition, including but not limited to anystorm water drainage facilities, open space areas and private roadways within the Condominium, Upper Alien Township (the "Township") may serve written notice upon the Association, setting forth the details of any such deficiencies. The notice shall require that such deficiencies in maintenance be cured within thirty (30) calendar days and shall state the date and place of a hearing thereon which shall be held within fourteen (14) calendar days of the notice. At such hearing, the Township may modify the terms of the original notice and may give an extension of time within which the deficiencies shall be cured. If the deficiencies, as finally described, shall not have been cured within said thirty (30) calendar day period, or any extension thereof, the Township, in order to preserve the taxable values of the Property and to prevent the Common Elements from becoming a public nuisance, may enter upon such Common Elements and maintain the same for a period of one (1) year. Said entry and maintenance by the Township shall not vest the public with any rights to use the Common Elements. Prior to the expiration of the one (1) year period, the Township shall, upon its initiative or upon the request of the Association, call a public hearing with notice to the Association, at which hearing the Association shall show cause why such maintenance by the Townsbhip, at the election of the Township, should not continue for an additional year. If the Township shall determine that the Association shall resume the maintenance "responsibilities for the Common Elements, then the Township shall cease its maintenance activities at the end of the initial year. If the Township shall determine that the Association shall not resume the maintenance of the Common Elements, then, at the Township's discretion, the Township may continue its maintenance activities during the next succeeding year, and, subject to a similar hearing, a determination for {A771451:) S.0725PG4331 -13- each year thereafter shall be made. The decision of the Township in each such case shall constitute a final administrative decision subject to judicial review. This Section 6.8 may not be amended without the prior consent of the Township. Section 6.9. Cost of Township's Maintenance Activities. If the Township shalt assume maintenance activities for all or any portion of the Common Elements in accordance with Section 8.8 above, the Township shall have the right to impose a Municipal Lien (See, 53 P.S. §7106, as amended) against the Association and/or the Unit Owners for the costs incurred by the Township, together with any other amounts collectible by the Township under the Pennsylvania Municipal Lien Law, as amended from time to t'i`me. This Section 6.8 may not be amended without the prior consent of the Township. ARTICLE VII EASEMENTS Section 7.1. Additional Easements. Each Unit Owner shall have an unrestricted right of ingress and egress to and from his or her Unit over, upon and through the Common Elements and upon Melbourne Lane and any other streets constructed within the Condominium until they are dedicated to and accepted by Upper Allen Township. In addition to such and in supplementation of the easements provided for by, and hereby created pursuant to, Sections 3216, 3217, 3218(1) and 3302(ax9) of the Act, the following additional easements are hereby created: 7.1.1. Declarant's Use for Sales Purposes. Declarant shall have the right to maintain one or more sales offices, management offices and models throughout the Property and to maintain one or more directional, promotional and advertising signs on the Common Elements and on Units owned by Declarant pursuant to Section 3217 of the Act. Declarant reserves the right to place models, management offices and sales offices on any portion of the Common Elements or in a Unit in such a manner, or such size and number and in such locations as Declarant deems appropriate. Declarant may from time to time relocate models, management offices and sales offices to different locations within the Property notwithstanding that the Condominium Documents may otherwise preclude such use in those locations. Upon the relocation of a model, management office or sales office constituting a Common Element, Declarant may remove all personal property and fixtures therefrom. Any fixtures not so removed shall be deemed Common Elements, and any real or personal property not so removed shall be deemed the property of the Association. 7.1.2. Utility Easements. The Units and Common Elements shall be, and are hereby, made subject to easements in favor of the Declarant, appropriate utility and service companies and govemmental agencies or authorities (including Upper Alien {A771451:) 14 BkO725PG4332 - - r Township and' municipal and sewer authorities) for such utility and service lines, ducts and equipment as may be necessary or desirable to serve any portion of the Property. The easements created in this Section 7.1.2 shall include, without limitation, rights of Declarant, or the providing utility or service company, or governmental agency or authority to install, lay, maintain, repair, relocate and replace gas lines, pipes and conduits, water mains and pipes, sewer and drain lines, telephone wires and equipment, television equipment and facilities (cable or otherwise), electric wires, conduits and equipment and ducts and vents over, under, through, along and on the Units and Common Elements. Notwithstanding the foregoing provisions of this Section 7.1.2, unless approved in writing by the Unit Owner or Unit Owners affected thereby, any such easement through a Unit shall be located either in substantially the same location as such facilities or similar facilities existed at the time of first conveyance of the Unit by the Declarant, or so as not to materially interfere with the use or occupancy of the Unit by its occupants. 7.1.3. Declarants Easement to Correct Drainage. Declarant reserves an easement on`over and under those portions of the Common Elements not located within a Building for the purpose of maintaining and correcting drainage of surface water in order to maintain reasonable standards of health, safety and appearance. The easement created by this Section 7.1.3 expressly includes the right to cut any trees, bushes, or shrubbery, to grade the soil, or to take any other action reasonably necessary to achieve this purpose, following which the Declarant shall restore the affected property as closely to its original condition as practicable. 7.1.4. Association's Easement to Inspect and Maintain Units and Limited Common Elements. The Units and the Limited Common Elements are hereby made subject to an easement in favor of the Association and its agents, employees and independent contractors, (1) for inspection of the Units and Limited Common Elements in order to verify the performance by Unit Owners of all items of maintenance, repair or replacement for which they are responsible, and to perform such items of maintenance, repair or replacement on behalf of a nonperforming Unit Owner as the Association shall elect to perform in its discretion; (ii) for inspection, maintenance, repair, and replacement of the Common Elements or the Limited Common Elements situated in or accessible from such Units or Limited Common Elements, or both; (iii) for correction of emergency conditions in one or more Units or Limited Common Elements, or both, or casualties to the Common Elements, the Limited Common Elements and/or the Units; and (iv) for any of the purposes set forth in Section 7.1.7 hereof, it being understood and agreed that the Association and its agents, employees and independent contractors shall take reasonable steps to minimize any interference with a Unit Owner's use of his or her Unit resulting from the Association's exercise of any rights it may have pursuant to this Article. 7.1.5. Easements in Favor of Units Benefited. The Common Elements (including, but not limited to, the Limited Common Elements) shall be and are hereby made subjecttto the following easements in favor of the Units benefited: {A771451:) B0725PG4333 -15- (a) For the installation, repair, maintenance, use, removal and/or replacement of pipes, ducts, heating and air conditioning systems, electrical, telephone and other communication wiring and cables and all other utility lines and conduits which are a part of or exclusively serve a single Unit and which pass across or through a portion of the Common Elements; provided that such installation, repair, maintenance, use, removal and/or replacement does not unreasonably interfere with the common use of any part of the Common Elements or impair or structurally weaken the Building or adversely affect the use of any Unit by its Owner. (b) For the installation, repair, maintenance, use, removal and/or replacement of overhead lighting fixtures, electrical receptacles and the like which are located in a portion of the ceiling, wall or floor adjacent to a Unit which is a part of the Common Elements; provided that the installation, repair, maintenance, use, removal or replacement of such fixtures, receptacles, and the like does not unreasonably interfere with the common use of any part of the Common Elements or impair or structurally weaken the Building, or adversely affect the use of any Unit by its Owner. (c) For driving and removing nails, screws, bolts and the like into the Unit -Side Surface of walls, ceilings and floors which are part of the Common Elements; provided that such action does not unreasonably interfere with the common use of any part of the Common Elements or impair or structurally weaken the Building or adversely affect the use of any Unit by its Owner. (d) For the maintenance of the encroachment of any lighting devices, outlets, cabinets, exhaust fans, ventilation ducts, registers, grilles and similar fixtures which serve only one Unit but which encroach into any part of any Common Element or Limited Common Element on the date this Declaration is recorded. A 7.1.6. Easement for Structural Support. To the extent necessary, each Unit shall hae an easement for structural support over every other Unit in the Building, the Common Elements and the Limited Common Elements, and each Unit and the Common Elements shall be subject to an easement for structural support in favor of every other Unit in the Building, the Common Elements and the Limited Common Elements. 7.1.7. Easement for Decorating, Cleaning and Maintaining Certain Surfaces. Wherever in this Declaration and the Plats and Plans a Unit Title Line of a Unit is described as being the Unit -Side Surface of a designated portion of the Property, it is intended thereby, and it is hereby declared, that if and to the extent necessary the Owner of such Unit shall have an easement for the purpose of decorating such surfaces and affixing thereto and removing therefrom floor coverings, paint, wallpaper, other decorative material, pictures, mirrors, wall systems and decorative articles, and (with {A771451:) BK0725PG4334 -16- respect to all such portions of the Property) cleaning and maintaining such surfaces, all at the cost and expense of the Owner of such Unit. Thus, by way of illustration and not limitation, the Owner of a Unit has an easement to paint the Unit -Side Surface of doors and window sills. It is understood and agreed that the Association, acting by its Executive Board on behalf of all Unit Owners, shall, at all times while this Declaration is in effect, retain the right and duty to maintain, repair and/or replace the portions of the Property to which said surfaces are attached, notwithstanding the fact that such maintenance, cleaning, repair or replacement may temporarily adversely affect the Unit Owner's aforesaid easement and right to use the Unit -Side Surface of such portion of the Property. 7.1.8. Declarant's Easement to Facilitate Completion, Conversion and Expansion. Declarant reserves an easement on, over and under the Common Elements as may be reasonably necessary for the purpose of discharging Declarant's obligations or exercising Special Declarant Rights, however arising, including, but not limited to, the development of Convertible/Withdrawable and/or Additional Real Estate, for all purposes relating to the construction, development, leasing, and sale of improvements within the Condominium. This easement shall include without limitation, the right of vehicular and pedestrian ingress and egress, the right to park motor vehicles and to engage in construction and marketing activities of any nature whatsoever, including the movement and storage of building materials and equipment, the conduct of sales, leasing and management activities, the maintenance of models and offices and the erection and maintenance of directional and promotional signs. Declarants easement hereunder shall remain in full force and effect on, over and under any portions of the Withdrawable Real Estate, even after said portion(s) have been withdrawn from the Condominium. 7.1.9. Declarant's Reservation of Richt to Grant Easements. Declarant reserves the right to grant, sell and convey easements for the purpose of benefiting the Property and/or any tract of land adjacent to or near the Property. Without limiting the generality of the preceding sentence, the Declarant may subject the Property to storm water and detention pond easements to be used by or jointly with adjoining property owners. 7.1.10. Easement for Encroachments. To the extent that any Unit or portion of the Common Elements encroaches upon any other Unit or portion of the Common Elements because of the construction, reconstruction, repair, shifting, settlement orother movement of any portion of the improvements, a valid easement for the encroachment and its maintenance shall exist, provided that the physical boundaries of the Units after construction, reconstruction or repair will be in substantial accord to the descriptions thereof set forth in the Declaration. The easement shall extend for whatever period of time the encroachment continues to exist. This easement does not relieve a Unit Owner of liability in the case of willful misconduct nor the Declarant or its agents of liability for failure to comply with the Declaration Plats and Plans. (A7714511 0725PG4335 -17- IF 7.1.11. Unit Owner's Use for Construction Purposes. Upon obtaining the prior consent of the Executive Board, a Unit Owner shall have a nonexclusive access easement through the Common Elements as may be reasonably necessary for the purpose of construction, repair or renovation of such Unit Owner's Unit, subject, however to the requirements of this Declaration, including but not limited to, Articles III, V, VI and VIII, and provided that the exercise of such easement rights shall not adversely affect the use and enjoyment of the Common Elements by other Unit Owners or the Association. The Association shall have the rights and powers granted to an association by the provisions of Section 3218 of the Act, including the right to require financial security for the repair of damage caused to the Common Elements in the exercise of the easement rights granted hereunder. A Unit Owner who exercises the easement rights hereunder, whether directly or indirectly through an agent, servant, contractor or employee, shall have the obligation to promptly return any portion of the Common Elements damaged by the exercise of the easement under this section to the appearance, condition and function which existed prior to the exercise of the easement, or to reimburse the Association for all reasonable costs, fees and expenses incurred by the Association to retum any portion of the Common Elements so damaged to the appearance, condition and function which existed prior to the exercise of the easement. ARTICLE VIII USE RESTRICTIONS Section 8.1. Use and Occupancy of Units, Limited Common Elements and Common Elements. All Unit Owners, including Declarant, shall have the same rights and duties which are appurtenant to each Unit. The occupancy and use of the Units and Common Elements shall be subject to the following restrictions: 8.1.1. Permitted Use. The Units in the Condominium (with the exception of any Units quring the time period when they are being used by the Declarant as a sample, model or sales office) are restricted to residential use and may not be used for any other purposes by the Unit Owner. Notwithstanding the foregoing, Units may also be used for accessory uses which are customarily incidental to the foregoing use, including a professional office; provided that any such use conforms with the applicable zoning regulations of Upper Allen Township, as the same may be amended from time to time, and further provided that the prior written approval of the Executive Board is obtained. 8.1.2. No Unlawful Purpose. No Unit Owner may permit his Unit to be used or occupied for any prohibited or unlawful purpose. (A771451:) -18- 0725PG4336 8.1.3. Satellite Dishes; Antennas. (a) Subject to subsection 8.1.3(b), (c) and (d) below, a Unit Owner may install and maintain on his or her Unit satellite dishes or other facilities for the receipt of radio or television broadcasts, subject to compliance with the following requirements: (i) The satellite dish or other facilities must be of the smallest size reasonably commercially obtainable that will provide reception of an acceptable quality signal; (ii) The satellite dish or other facilities may not be located in front of the plane created by the front of the Building of which the Unit is a part; (iii) If possible, the satellite dish or other facilities shall not be visible from the street in front of the Unit; (iv) Without limiting the preceding requirements, the location of such installations must be as unobtrusive as possible, provided reception is of adequate quality in such location; (v) Unit Owners may not install such facilities on or over the Common Elements or any other Unit not within the exclusive use or control of the Unit Owner; (vi) The Executive Board, in its sole discretion, may require a Unit Owner at the sole expense of the Unit Owner, to paint or screen any such installation, including requiring that wiring be concealed, provided that the painting or screening does not invalidate any manufacturer's warranty relating to such installation; (vii) A Unit Owner having a satellite dish or other such facilities shall be responsible for all related maintenance, repair and replacement obligations and costs associated therewith, including moving or removing the satellite dish or other facilities when necessary for the Association to perform required maintenance to any portion of the Condominium required to be maintained by the Association; provided however, that such Unit Owner shall obtain the prior consent of the Executive Board to perform any of such maintenance, repair or replacement obligations that in any way affect any portion of the Common Elements; (viii) Any such installation must be done and maintained in a safe manner and location so as not to pose a threat to the safety or welfare of any person, or damage to any property, real or personal; {A771451:} f' B{0725PG4337 - 9- A (ix) The Unit Owner of a Unit in, on, or appurtenant to which any such facilities have been installed in accordance with this Subsection 8.1.3, or otherwise, agrees to indemnify the Association and the Executive Board from any and all claims and liability for personal injury or property damage arising out of the installation, maintenance, existence or use of such facilities; (x) The Unit Owner must submit a plan showing the proposed location and size of the satellite dish or other facilities to the Executive Board at least thirty (30) days prior to the installation thereof. The Executive Board shall determine whether such installation complies with the requirements of this Subsection 8.1.3 (subject, however, to the Executive Board's discretion pursuant to Subsection 5.1.2 hereof); and (xi) All such installations shall be performed only by professional installers, in accordance with all applicable local, state and/or federal regulations and the manufacturer's specifications and instructions. (b) Notwithstanding subsection 8.1.3(a) above and in lieu thereof to the extent permitted by the FCC, the Executive Board shall have the right to install satellite dishes or other facilities on or within any Common Element portion of the Condominium as it deems appropriate, for the purpose of making the benefit of such facilities available to all Unit Owners in the Condominium. Any such facilities installed to benefit all Unit Owners shall be a Common Element, and the costs and expenses of installation, maintenance end repair shall be a Common Expense, allocated in accordance with the provisions of Section 10.3 hereof. (c) This Section 8.1.3 shall apply in all respects to satellite dishes or other facilities installed by tenants or other non -owner occupants of a Unit. (d) In the event that any of the provisions of this Subsection 8.1.3 contradict any rules, rulings or determinations of the Federal Communications Commission or any other agency having jurisdiction (the "FCC") in effect, the then current rules, rulings, or determinations of the FCC shall prevail. 8.1.4. Rules and Regulations. Reasonable Rules and Regulations, not in conflict with the provisions of this Declaration, concerning the use and enjoyment of the Property, may be promulgated from time to time by the Executive Board, subject to the right of the A§sociation to change such Rules and Regulations. Copies of the then current Rules: and Regulations and any amendments thereto shall be furnished to all Unit Owners fy the Executive Board promptly after the adoption of such Rules and Regulations or any amendments thereto. {A771451:I -20- BKO725PG4338 ARTICLE IX LEASING Section 9.1. Leases. A Unit Owner may lease or sublease his Unit (but not less than his entire Unit) at any time and from time to time provided that: 9.1.1. A Unit may not be leased or rented for a term of less than one hundred eighty (180) days; 9.1.2. All leases and rental agreements shall be in writing and subject to the requiremg°nts of the Condominium Documents and the Association; 9.1.3. A Unit Owner shall deliver a copy of the Declaration, the Bylaws and Rules and Regulations to the Unit Owner's tenant at the time any lease or rental agreement is executed, and the tenant shall sign a receipt therefor. Copies of any amendments to the Declaration, the Bylaws and Rules and Regulations received by the Unit Owner during the term of the lease shall be forwarded to the tenant upon receipt if the said amendment(s) affect the tenant's occupancy of the Unit; 9.1.4. The rights of any lessee of a Unit shall be subject to, and each lessee shall be bound by the Condominium Documents, and a default thereunder shall constitute a default under the lease; 9.1.5. Notwithstanding that a lease may require the lessee to be responsible for the payment of the Common Expense assessments during the term of the lease, any such provision shall not relieve the Unit Owner of his obligation for payment of same in the event that lessee fails to do so; 9.1.6. A copy of such lease or rental agreement and a copy of the receipt referred to in Section 9.1.3 shall be furnished to the Executive Board within ten (10) days after execution of the lease; and 9.1.7. A Unit Owner leasing his Unit shall provide his then current mailing address to the Executive Board, if at a location other than his Unit. Section 9.2. Exceptions. Notwithstanding the foregoing, the provisions of this Article shall not apply to Units leased or subleased by the Declarant, or by an Eligible Mortgagee which is either in possession or is a purchaser at judicial sale. (A771451:) _0725PG4339 -21- ARTICLE X ASSESSMENT AND COLLECTION OF COMMON EXPENSES, INCLUDING LIMITED COMMON EXPENSES; OTHER ASSESSMENTS Section 10.1. Definition of Common Expenses. Common Expenses shall include: 10.1.1. Expenses of administration, maintenance, and repair or replacement of the Common Elements; and 10.1.2. Expenses declared to be Common Expenses by the Condominium Documents or the Act; and 10.1.3. Expenses agreed upon as Common Expenses by the Association; and 10.1.4. Such reserves as may be established by the Association, whether held in trust or by the Association, for repair, replacement or addition to the Common Elements or any other real or personal property acquired or held by the Association. Section 10.2. Apportionment of Common Expenses. Except as provided in Section 10.3, all Common Expenses shall be assessed against all Units in accordance with their Percentage Interest determined in accordance with Section 2.1 hereof. Section 10.3. Special Allocations of Expenses. 10.3.1. Any Common Expense associated with the maintenance, repair or replacement of Limited Common Elements shall be assessed in equal shares against the Units to which the Limited Common Elements were assigned at the time the expenses were incurred. -10.3.2. Any Common Expense benefiting fewer than all of the Units shall be assessed exclusively against the Units benefited. 10.3.3. Any Common Expense for services provided by the Association to an individual Unit at the request of the Unit Owner shall be assessed against the Unit which benefits from such service. 10.3.4. Any increase in insurance premium attributable to a particular Unit by virtue of activities in or construction of the Unit, including but not limited to any fireplace installed within a Unit (if available), shall be assessed against that Unit. (A771451:) O725PG4340 -22- 10.3.5. Assessments to pay a judgment against the Association may be made only against the Units in the Condominium at the time the judgment was rendered, in proportion to their Common Expense liabilities, except as provided in Section 3319(c) of the Act. 10.3.6. If any Common Expense is caused by the negligence or misconduct of a Unit Owner, the Association may, after Notice and Hearing, assess that expense exclusively against his Unit. 10.3.7. Fees, including attorneys' fees, late charges, fines and interest charged against a Unit Owner pursuant to the Condominium Documents and the Act are enforceable as Common Expense assessments. Section 10.4. Initial Conveyance Assessment. Commencing with the First Settlement, upon the transfer of title from the Declarant (or a successor to Special Declarant Rights) to the initial purchaser of each Unit, the Association shall be permitted to collect from such initial purchasers an assessment equal to two (2) months' estimated Common Expense liability for such Unit, which monies shall be used by the Association for any proper Association purposes, including for general operating funds. Any amount paid hereunder shall not be considered as advance payments of regular Common Expense assessments. No Unit Owner is entitled to a refund of these monies by the Association upon the subsequent conveyance of his Unit or otherwise. Section 10.5. Lien. 10.5.1. The Association has a statutory lien on a Unit for any assessment levied against that Unit and for late fees or fines imposed against its Unit Owner from the time the assessment, late charge or fine becomes delinquent. Fees, including attorneys' fees, late charges, fines and interest charged pursuant to the Act and the Condominium Documents are enforceable as assessments under this Section. If an assessment is payable in installments, and one or more installment is not paid when due, the entire outstanding balance of the assessment becomes effective as a Tien from the due date of the delinquent installment. 10.5.2. Any lien for delinquent Common Expense assessments or other charges that the Association has on a Unit will be subordinate to a first mortgage on the Unit, if,the mortgage was recorded before the due date of the assessment or the due date of tle unpaid installment, if the assessment is payable in installments, or to a judgment obtained for obligations secured by any mortgage. 10.5.3. Recording of this Declaration constitutes record notice and perfection of the lien. No further recordation of any claim of lien for assessment under this Section is required. 10.5.4. A lien for unpaid assessments is extinguished unless proceedings to enforce the lien are instituted within three (3) years after the {A771451:) BK0725PG434 L 1 -23- assessments become payable; provided, that if an Owner of a Unit subject to a lien under this Section files a petition for relief under the United States Bankruptcy Code, the period of time for instituting proceedings to enforce the Association's lien shall be tolled until thirty days after the automatic stay of proceedings under Section 362 of the Bankruptcy Code is lifted. 10.5.5. This Section does not prohibit actions to recover sums for which Section 10.5.1. creates a lien or prohibit the Association from taking a deed in lieu of foreclosure. 10.5.6. A judgment or decree in any action brought under this Section shall include costs and reasonable attomey's fees for the prevailing party. 10.5.7. The Association's lien may be foreclosed in like manner as a mortgage on real property. 10.5.8. If a holder of a first or second Security Interest in a Unit forecloses that Security Interest, the purchaser at the foreclosure sale is not liable for any unpaid assessments against that Unit which became due before the sale, other than no more than six (6) months of assessments which are prior to that Security Interest in accordance with the provisions of the Act. Any unpaid assessments not satisfied from; the proceeds of sale shall become Common Expenses collectible from all the Unit Owners, including the purchaser. 10.5.9. Notwithstanding any restrictive endorsements, designation or instructions placed on or accompanying payment, any payments received by the Association in the discharge of a Unit Owner's obligation may, at the Association's discretion, be applied first, to any interest accrued by the Association, then to any late fee, then to any costs and reasonable attorney fees incurred by the Association in collection or enforcement, and then to the delinquent assessment. 10.5.10. Any fees, including attorneys' fees, late charges, fines and interest which may be levied by the Executive Board pursuant to Sections 3302(aX10), (11) and (12) of the Act, shall be subordinate to the lien of a Security Interest on a Unit. Section 10.6. Budget Adoption. Immediately after adoption of any proposed budget or approval of any capital expenditure for the Condominium by the Executive Board, the Executive Board shall provide a copy or summary of the budget and notice of any capital expenditure approved by the Executive Board to all the Unit Owners. Unless a majority of all Unit Owners vote to reject the budget or any capital expenditure approved by the Executive Board, within thirty (30) days after approval by the Executive Board, the budget or capital expenditure is ratified. In the event the proposed budget is rejected, the periodic budget last ratified by the Unit Owners shall be continued until such time as a subsequent budget is adopted by the Executive Board, and such subsequent budget is not rejected in accordance with this Section and Section 3303(b) of the Act. (A771451:) BX072•5PG4342 -24- Q Section 10.7. Adoption of Non-Budoeted Common Expense Assessments. If the Executive Board votes to levy a Common Expense assessment not included in the current budget, other than one enumerated in Section 10.3 of this Declaration, the Executive Board shall immediately submit a copy or summary of such Common Expenses to the Unit Owners and such Common Expenses shall be subject to rejection in the same manner as a budget under Section 10.6. Notwithstanding the foregoing, the Unit Owners shall not have the power to reject the imposition of Common Expense assessments due to the actual cost of a budgeted item being in excess of the amount originally budgeted. Section 10.8. Certificate of Payment of Common Expense Assessments. On written request, the Association shall fumish to a Unit Owner a statement in recordable form setting forth the amount of unpaid assessments currently levied against the Unit as required by Section 3315(g) of the Act and any credits of surplus in favor of his or her Unit pursuant:to Section 3313 of the Act. The statement shall be furnished within ten (10) business days after receipt of the request and is binding on the Association, the Executive Board and every Unit Owner. Section 10.9. Monthly Payment of Common Expenses. All Common Expenses assessed under Sections 10.2 and 10.3 shall be due and payable in monthly installments in advance on the first day of each month, unless the Executive Board provides otherwise in the case of assessments under Section 10.3. Special Assessments shall be due and payable in one or more monthly installments in advance on the first day of the month, as determined by the Executive Board. Section 10.10. Acceleration of Common Expense Assessments. In the event of default for a period of ten (10) days by any Unit Owner in the payment of any Common Expense assessment levied against his or her Unit, the Executive Board shall have the right, after Notice and Hearing, to declare all unpaid assessments for the pertinent fiscal year to be imediately due and payable. Section 10.11. Commencement of Common Expense Assessments. In general, Common Expense assessments shall begin as of the date of the conveyance of the first Unit to a Unit Owner other than the Declarant. The Common Expense assessment for an individual Unit shall commence as of the date of settlement on that Unit between Declarant and the Unit Owner or beginning the first full calendar month thereafter, at Declarant's discretion. Section 10.12. Personal Liability of Unit Owners. The Owner of a Unit at the time a Common Expense assessment or portion thereof is due and payable is personally liable for the assessment. Personal liability for the assessment shall not pass to a successor in title to the Unit unless he or she agrees to assume the obligation. Section 10.13. No Waiver of Liability for Common Expenses. No Unit Owner may exempt himself or herself from liability for payment of the Common Expenses by (A771451:) BK0725PG4343 - 25 - waiver of the use or enjoyment of the Common Elements or by abandonment of the Unit against which the assessments are made. 1k Section 10.14. Surplus Funds. Any amounts accumulated from Assessments for Common Expenses or Assessments for Limited Common Expenses and income related thereto, in excess of the amounts required for actual Common Expenses, Limited Common Expenses and reserves for future Common Expenses or Limited Common Expenses, as the case may be, shall be credited to a Unit, as applicable, in accordance with Section 3313 of the Act and shall be applied to subsequent monthly assessments against that Unit until exhausted. Section 10.15. Association Records. During the period of Declarant control, the Association shall keep detailed financial records, including, without limitation, a record of expenses paid by the Declarant until the commencement of Common Expense assessments by the Association under section 3314(a) of the Act, the commencement date of Common Expense assessments by the Association, and, for the period commencing on such date, a record for each Unit in the Condominium (including those owned by Declarant) of its Common Expense assessments and the payments thereof. The Association shall keep financial records sufficiently detailed to enable the Association to comply with Section 10.8 of the Declaration and Section 3407 of the Act. All financial and other records shall be made reasonably available for examination by any Unit Owner and his or her authorized agents. ARTICLE XI MORTGAGEE PROTECTIONS Section 11.1. Introduction. This Article establishes certain standards and covenants which are for the benefit of the holders, insurers and guarantors of certain Security Interests. This Article is supplemental to, and not in substitution for, any other provisions of the Condominium Documents, but in the case of conflict, this Article shall control. Section 11.2. Percentage of Eliaible Mortaaaees. Wherever in this Declaration the approval or consent of a specified percentage of Eligible Mortgagees is required, it shall mean the approval or consent of Eligible Mortgagees holding Security Interests in Units which in the aggregate have allocated to them such specified percentage of votes in the Association as compared to the total allocated to all Units then subject to Security Interests held by Eligible Mortgagees. Section 11.3. Notice of Actions. The Association shall give prompt written notice to each Eligible Mortgagee and Eligible Insurer of: 11.3.1. Any condemnation loss or any casualty loss which affects a material portion of the Condominium or any Unit in which there is a first Security Interest {A771451:) BK0725PG4344 -26- held, insured, or guaranteed by such Eligible Mortgagee or Eligible Insurer, as applicable; 11.3.2. Any delinquency in the payment of Common Expense assessments owed by a Unit Owner whose Unit is subject to a first Security Interest held, insured, or guaranteed, by such Eligible Mortgagee or Eligible Insurer, as applicable, which remains uncured for a period of sixty (60) days; 11.3.3. Any lapse, cancellation, or material modification of any insurance policy or fidelity bond required by the provisions of the Condominium Documents to be maintained by the Association; and 11.3.4. Any proposed action which would require the consent of a specified percentage of Eligible Mortgagees as specified in Section 11.4 of this Declaration. Section 11.4. Consent and Notice Required. '11.4.1. Document Changes. Notwithstanding any lower requirement permitted by this Declaration or the Act, no amendment of any material provision of the Condominium Documents by the Association or Unit Owners described in this Subsection 11.4.1 may be effective without notice to all Eligible Mortgagees and Eligible Insurers, as required by Section 11.3 above, and the vote of the specified percentage of Unit Owners required in this Declaration or the Act, and until approved by at least fifty-one percent (51 %) of the Eligible Mortgagees (or any greater Eligible Mortgagee approval required by this Declaration). The foregoing approval requirements shall not apply to amendments effected pursuant to Articles XIX, XX or XXI, or Section 16.8 of this Declaration. The following would be considered material: (a) Termination of the legal status of the Condominium after occurrence of substantial destruction or condemnation or for other reasons; and (b) An amendment to any provision that expressly benefits mortgage holders, insurers or guarantors, if such amendment is of a material adverse nature to such mortgage holders, insurers or guarantors. 11.4.2. Actions. Notwithstanding any lower requirement permitted by this Declaration or the Act, the Association may not take any action to terminate the legal status of the Condominium after the occurrence of substantial destruction or condemnation, or for other reasons, without notice to all Eligible Mortgagees, and Eligible Insurers as required by Section 11.3 above, the vote of the specified percentage of Unit Owners required in this Declaration or the Act, and approval of at least fifty-one percent (51%) of the Eligible Mortgagees. {A771451:) BK.0725PG4345-27- 11.4.3. Implied Approval. The failure of an Eligible Mortgagee or Insurer to respond within sixty (60) days to any written request of the Association delivered by certified or registered mail, return receipt requested in accordance with Section 3221 of the Act, for approval of an addition or amendment to the Condominium Documents or of an action under Section 11.4.2 above wherever Eligible Mortgagee or Insurer approval is required, shall constitute an implied approval of such addition, amendment or action. Section 11.5. Special Declarant Rights. No Special Declarant Rights may be voluntarily abandoned or terminated by the Declarant unless all persons holding Security Interests in such Special Declarant Rights consent to the abandonment or termination. Section 11.6. Inspection of Books. The Association must maintain current copies of the Declaration (and amendments thereto), Articles of Incorporation, Bylaws, Rules and Regulations, books and records and financial statements. The Association shall permit any Unit Owner, Eligible Mortgagee or Eligible insurer or other first mortgagee of Units, to inspect the books and records of the Association during normal business hours. Section 11.7. Enforcement. The provisions of this Article are for the benefit of Eligible Mortgagees and Eligible Insurers and their successors, and may be enforced by any of them by any available means, at law, or in equity. Section 11.8. Appointment of Trustee. in the event of damage or destruction to the Property or condemnation of all or a portion of the Condominium, any Eligible Mortgagee may require that proceeds arising out of such damage or destruction be payable to a Trustee established pursuant to Section 15.5 of this Declaration. Such Trustee maybe required to be a corporate trustee licensed by the Commonwealth of Pennsylvania. Proceeds will thereafter be distributed pursuant to Article XV or pursuant to a condemnation award. Unless otherwise required, the members of the Executive Board, acting by majority vote through the president, may act as Trustee. ARTICLE XII DECLARANT CONTROL OF THE ASSOCIATION AND SPECIAL DECLARANT RIGHTS Section 12.1. Control of the Association. 12.1.1 Until the one hundred eightieth (180th) day after conveyance of seventy-five percent (75%) of the Units which may be constructed on the Property to Unit Owners they than Declarant, Declarant shall have the right to appoint and remove any and all officers and members of the Executive Board, except that Declarant may not (A771451:} BKO725PG4346 -2$- unilaterally remove any members of the Executive Board elected by Unit Owners other than Declarant. 12.1.2. Not later than sixty (60) days after conveyance of twenty-five percent (25%) of the Units which may be constructed on the Property to Unit Owners other than Declarant, two (2) of the five (5) members of the Executive Board shall be elected by Unit Owners other than Declarant. 12.1.3. Not later than the earlier of (i) seven (7) years after the date of the recording of this Declaration, or (ii) one hundred eighty (180) days after seventy-five percent (75%) of the Units which may be constructed upon the Property have been conveyed to Unit Owners other than Declarant, all members of the Executive Board shall resign, and the Unit Owners (including Declarant to the extent of Units owned by Declarant) shall elect a new five (5) member Executive Board. Within sixty (60) days after the termination of the period of Declarant control of the Association, Declarant shall deliver to the Association all property of the Unit Owners and of the Association, together with all applicable items designated in Section 3320 of the Act. 12.1.5. Following the transfer of control of the Executive Board by the Declarant to the Unit Owners pursuant to Section 12.1.3 above, the Unit Owners shall have the right to increase or decrease from time to time the number of members comprising the Executive Board. Section 12.2. Special Declarant Rights. Notwithstanding the transfer by Declarant to Unit Owners of control of the Association pursuant to Section 12.1 hereof, the Declarant reserves unto itself all Special Declarant Rights as defined in Section 3103 of the Act, with the exception of the right to cause the Condominium to be merged or consolidated with another condominium and the right to make the Condominium subject to a master association, which Declarant shall not have, for as long as Declarant owns any Unit or any Convertible Real Estate exists within the Condominium. These Special Declarant Rights include, inter gig, the right to transfer any or all of Declarant's Special Declarant Rights to one or more successors, provided that the transfer(s) shall be effected in accordance with the provisions of this Declaration and Section 3304 of the Act. Any successor to any Special Declarant Right shall have the liabilities and obligations set forth in Section 3304(e) of the Act. ARTICLE XIII LIMITATION OF LIABILITY Section 13.1. Limited Liability of the Executive Board Members of the Association. To the fullest extent permitted by Pennsylvania law, as now in effect and as modified from time to time, an Executive Board Member of the Association shall not {A771451:) BK0725PG4347 29- be personally liable for monetary damages for any action taken or any failure to take any action. Section 13.2. Indemnification of Executive Board Members and Officers of the Association. 4 13.2.1. Third Party Actions. The Association shall indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of the Association) by reason of the fact that the person is or was an Executive Board member or officer of the Association, against expenses (including attorneys' fees), judgments, fines and amounts paid in settlement, actually and reasonably incurred by the person in connection with such threatened, pending or completed action, suit or proceeding. ;13.2.2. Derivative Actions. The Association shall indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the Association to procure a judgment in its favor by reason of the fact that the person is or was an Executive Board member or officer of the Association, against expenses (including attorneys' fees), judgments, fines and amounts paid in settlement, actually and reasonably incurred by the person in'connection with such threatened, pending or completed action or suit by or in the right of the Association. 13.2.3. Procedure for Effecting Indemnification. Indemnification under Subsections 13.2.1 and 13.2.2 shall be automatic and shall not require any determination that indemnification is proper, except that no indemnification shall be made in any case where the act or failure to act giving rise to the claim for indemnification is determined by a court to have constituted willful misconduct or recklessness. 13.2.4. Expenses Advanced. The Association shall advance expenses incurred by an Executive Board member or officer of the Association who is entitled to beindemnified pursuant to the provisions of this Section 13.2 in advance of the final disposition of such action, suit or proceeding, upon receipt of an undertaking by or on behalf of such person to repay such amount if it shall ultimately be determined by a court of competent jurisdiction that such person is not entitled to be indemnified by the Association. 13.2.5. Indemnification of Other Persons. The Association may, at the discretion of, and to the extent and for such persons as determined by the Executive Board of the Association, (1) indemnify any person who neither is nor was an Executive Board member or officer of the Association but who is or was a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (and whether brought by or in the right of the Association), by reason of the fact that the person is or was a representative (A771451:} :tt 725PG4348 -30- of the Association, against expenses (including attorneys' fees), judgments, fines and amounts paid in settlement, actually and reasonably incurred by the person in connection with such threatened, pending or completed action, suit or proceeding and (11) pay such expenses in advance of the final disposition of such action, suit or proceeding, upon receipt of an undertaking by or on behalf of such person to repay such amount,if it shall ultimately be determined by a court of competent jurisdiction that such person is not entitled to be indemnified by the Association. Section 13.3. Indemnification Insurance. The Executive Board may obtain insurance to satisfy the indemnification obligations set forth in Section 13.2 above, if and to the extent available at a reasonable cost. ARTICLE XIV INSURANCE Section 14.1. Coverage. Commencing no Tater than the date of the First Settlement and to the extent reasonably available, the Executive Board shall obtain and maintain Insurance coverage as set forth in Sections 14.2 and 14.3 of this Article and in accordance v'yith the provisions of Section 3312 of the Act. Any property or comprehensive general liability insurance carried by the Association may contain a deductible provision. If such insurance is not reasonably available, and the Executive Board determines that any insurance described herein will not be maintained, the Executive Boprd shall cause notice of that fact to be hand -delivered or sent prepaid by United States mail to all Unit Owners and Eligible Mortgagees at their respective last known addresses. Section 14.2. Property Insurance. 14.2.1. Proiect Facilities. Property insurance covering: (a) The Project Facilities (which term means all Buildings on the Property, including the Units and all fixtures, equipment and any improvements and betterments whether part of a Unit or a Common Element or Limited Common Element, and such personal property of Unit Owners as is normally insured under building coverage), but excluding land, excavations, portions of foundations below the undersurfaces of the lowest, basement floors, underground pilings, piers, pipes, flues and drains and other Items normally excluded from property policies; and 'f(b) All personal property owned by the Association. 14.2.2. Amounts, The Project Facilities shall be insured for an amount equal to one hundred percent (100%) of their replacement cost at the time the {A771451:) O725PG4349-31 insurance is purchased and at each renewal date. Personal property owned by the Association shall be insured for an amount equal to its actual cash value. (a) The maximum deductible amount on the policy for the Project Facilities shall be the lesser of $10,000 or one percent (1 %) of the face amount of the policy. Funds to cover these deductible amounts shall be considered a Common Expense, levied in accordance with Sections 3312(i) and 3314(c) of the Act. ((b) The Executive Board is authorized to obtain appraisals periodically for the purpose of establishing said replacement cost of the Project Facilities and the actual cash value of the personal property. The cost of such appraisals shall be a Common Expense. 14.2.3. Risks Insured Aaainst. The insurance shall afford protection against "all risks" of direct physical loss commonly insured against. 14.2.4. Other Provisions. Insurance policies required by this Section shall provide that: (a) The insurer waives its right to subrogation under the policy against any Unit Owner or member of his or her household; 1(b) No act or omission by any Unit Owner, unless acting within the scope of his or her authority on behalf of the Association, will void the policy or be a condition to recovery under the policy; (c) If, at the time of a loss under the policy, there is other insurance in the name of a Unit Owner covering the same risk covered by the policy, the Association's policy provides primary insurance; (d) Loss shall be adjusted with the Association; (e) Insurance proceeds shall be paid to any insurance trustee designated in the policy for that purpose, and, in the absence of such designation, to the Association, in either case to be held in trust for each Unit Owner and such Unit Owner's mortgagee; (f) The insurer may not cancel or refuse to renew the policy until thirty (30) days after notice of the proposed cancellation or non -renewal has been mailed to the Association, each Unit Owner and each holder of a Security Interest to whom a certificate or memorandum of insurance has been issued, at their respective last known address; and {n77I451:j . KQ725PG4.350 -32- (g) The name of the insured shall be substantially as follows: "Melboume Place Condominium Association" for the use and benefit of the individual unit owners. Section 14.3. Liability Insurance. Liability insurance, including medical payments insurance, in an amount determined by the Executive Board but in no event less than $1,000,000, covering all occurrences commonly insured against for death, bodily injury and property damage arising out of or in connection with the use, ownership or maintenance of the Common Elements. 14.3.1. Other Provisions. Insurance policies carried pursuant to this Section shall provide that: la) Each Unit Owner is an insured person under the policy with respect to liability arising out of his or her interest in the Common Elements or membership in the Association; r(b) The insurer waives its rights to subrogation under the policy against any Unit Owner or member of his or her household; (c) No act or omission by any Unit Owner, unless acting within the scope of his or her authority on behalf of the Association, will void the policy or be a condition to recovery under the policy; (d) If, at the time of a loss under the policy, there is other insurance in the name of a Unit Owner covering the same risk covered by the policy, the Association's policy provides primary insurance; and '(e) The insurer may not cancel or refuse to renew the policy until thirty (30) days after notice of the proposed cancellation or non -renewal has been mailed to the Association, each Unit Owner and each holder of a Security Interest to whom a certificate or memorandum of insurance has been issued, at their respective last known addresses. Section 14.4. Fidelity Bonds. The Association shall maintain a blanket fidelity bond for anyone who either handles or is responsible for funds held or administered by the Association, whether or not they receive compensation for their services. The bond shall name the Association as obligee and shall cover the maximum funds that will be in the custody of the Association or the manager at any time while the bond is in force, and in no event less than the sum of three months' assessments plus reserve funds. The bond shall include a provision that calls for thirty (30) days written notice to the Association, to each holder of a Security Interest in a Unit and to each servicer that services a FNMA -owned or FHLMC-owned mortgage on a Unit before the bond can be canceled or substantially modified for any reason; except that if cancellation is for nonpayment of premiums, only ten (10) days' notice shall be required. {A771451:) BKO725PG4351 -33- Section 14.5. Unit Owner Policies. An insurance policy issued to the Association does not prevent a Unit Owner from obtaining insurance for his or her own benefit. A Unit Owner may insure his Unit for all losses to his Unit, including all losses not covered by the insurance maintained by the Association due to a deducible provision or otherwise. Section 14.6. Worker's Compensation Insurance. The Executive Board shall obtain and maintain worker's compensation insurance to meet the requirements of the laws of the Commonwealth of Pennsylvania. Section 14.7. Directors' and Officers' Liability Insurance. The Executive Board shall obtain and maintain directors' and officers' liability insurance, if reasonably available, covering all of the Executive Board members and officers of the Association in such limits as the Executive Board may, from time to time, determine to be advisable. Section 14.8. Other Insurance. The Association may carry other insurance in such reasonable amounts and with such reasonable deductibles as the Executive Board considers appropriate to protect the Association or the Unit Owners. r Section 14.9. Premiums and Deductibles. Insurance premiums and deductibles for insurance carried by the Association shall be Common Expenses, levied in accordance with Sections 3312 and 3314 of the Act. Any increase in any Association insurance premium attributable to a particular Unit by virtue of the use of the Unit, activities in, or construction of the Unit shall be assessed against that Unit. ARTICLE XV DAMAGE TO OR DESTRUCTION OF PROPERTY Section 15.1. Duty to Restore. Any portion of the Property for which insurance is required under Section 3312 of the Act or for which insurance carried by the Association is in effect, whichever is more extensive, shall be repaired or replaced promptly by the Association unless: 15.1.1. The Condominium is terminated; Repair or replacement would be illegal under any state or local statute or ordinance goveming health or safety; 15.1.3. Eighty percent (80%) of the Unit Owners, including every owner of a Unit or assigned Limited Common Element that will not be rebuilt, vote not to rebuild. Section 15.2. Cost. Except for the costs of repair or replacement which are not covered due to deductibles, the cost of repair or replacement in excess of insurance (A771451:} BK0725PG4352 -34- proceeds and reserves which have not been identified by the Executive Board to fund costs of capital expenditures for the current fiscal year of the Association shall be a Common Expense. If any insurance policy maintained by the Association contains a deductible, then that portion of any loss or claim which is not covered by insurance due to the application of a deductible, as well as any claim or loss for which the Association is self-insured, shall be levied by the Executive Board in accordance with Section 3314(c) of the Act. Section 15.3. Plans. The Property must be repaired and restored in accordance with either the original plans and specifications or other plans and specifications which have been approved by the Executive Board, a majority of Unit Owners and fifty-one percent (51 %) of Eligible Mortgagees. Section 15.4. Replacement of Less Than Entire Progeny. 15.4.1. The insurance proceeds attributable to the damaged Common Elements shall be used to restore the damaged area to a condition compatible with the remainder of the Condominium. 15.4.2. Except to the extent that other persons will be distributees, (a) The insurance proceeds attributable to Units and Limited Common Elements that are not rebuilt shall be distributed to the owners of those Units and the owners of the Units to which those Limited Common Elements were allocated, or to lien holders, as their interests may appear; and (b) The remainder of the proceeds shall be distributed to all the Unit Owners or lien holders, as their interests may appear, in proportion to the Common Expense liabilities of all the Units. 15.4.3. If the Unit Owners vote not to rebuild any Unit, that Unit's Percentage Interest is automatically reallocated on the same basis as if the Unit has been condemned under Section 3107 of the Act, and the Association shall promptly prepare, execute and record an amendment to this Declaration reflecting the reallocations. Section 15.5. Insurance Proceeds. The insurance trustee, or if there is no insurance trustee, then the Association, shall hold any insurance proceeds in trust for the Association, Unit Owners and lien holders as their interests may appear. Subject to the provisions of Subsection 15.1.1 through Subsection 15.1.3, the proceeds shall be disbursed first for the repair or restoration of the damaged Property, and the Association, Unit Owners and lien holders are not entitled to receive payment of any portion of the'proceeds unless there is a surplus of proceeds after the Property has been completely repaired or restored, or the Condominium is terminated. (A771451:) NO725P04353 -35- Section 15.6. Certificates by the Executive Board. A trustee, if any, may rely on the following certifications in writing made by the Executive Board: 15.6.1. Whether or not damaged or destroyed Property is to be repaired or restored; 15.6.2. The amount or amounts to be paid for repairs or restoration and the names and addresses of the parties to whom such amounts are to be paid. Section 15.7. Certificates by Attomevs. If payments are to be made to Unit Owners or mortgagees, the Executive Board, and the trustee, if any, shall obtain and may rely on an attomey's certificate of title or a title insurance certificate based on a search of the land records of the county in which the Property is located from the date of the recording of the original Declaration stating the names of the Unit Owners and the mortgagees. ARTICLE XVI AMENDMENTS TO DECLARATION Section 16.1. Amendment Generally. Except in cases of amendments that may be executed by the Declarant in the exercise of its Special Declarant Rights, including those rights described in Articles XIX, XX or XXI of this Declaration, or by the Association pursuant to Section 16.8 below, or as otherwise permitted by the Act or other provisions of this Declaration, and except as limited by Section 16.4 and Article XI of this Declaration, or by certain provisions of the Act, this Declaration, including the Plats and Plans, may be amended only by vote or agreement of Unit Owners of Units to which at least sixty-seven percent (67%) of the votes in the Association are allocated. Section 16.2. Limitation of Challenges. No action to challenge the validity of an amendment adopted by the Association pursuant to this Article may be brought more than one year after the amendment is recorded. Section 16.3. Recordation of Amendments. Every amendment to this Declaration shall be recorded in the county in which the Property is located and shall be effective only on recording. An amendment shall be indexed in the name of the Condominium in both the grantor and grantee index. Section 16.4. When Unanimous Consent Required. Except to the extent expressly permitted or required by other provisions of the Act and this Declaration, no amendment may create or increase Special Declarant Rights, increase the number of Units, change the boundaries of any Unit, the Percentage Interest of any Unit, or the uses to which any Unit is restricted, in the absence of unanimous consent of the Unit Owners. {A771451:) 0725Pt4354 -36- I Section 16.5. Execution of Amendments. Amendments to this Declaration required by the Act to be recorded by the Association, which have been adopted in accordance with this Declaration and the Act, shall be prepared, executed, recorded and certified on behalf of the Association by any officer of the Association designated for that purpose or, in the absence of designation, by the president of the Association. Section 16.6. Special Declarant Rights. Provisions in this Declaration creating Special Declarant Rights may not be amended without the consent of the Declarant. Section 16.7. Consent of Holders of Security Interests. Amendments are subject to the consent requirements of Article XI. Section 16.8. Corrective Amendments. If any amendment is necessary in the judgment of the Executive Board to cure any ambiguity or to correct or supplement any provision of this Declaration, including the Plats and Plans, that is defective, missing or inconsistent with any other provisions contained therein or with the Act, or if such amendment is necessary to conform to the requirements of the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation or other agency or entity with national or regional standards for mortgage loans with respect to condominium projects, or to comply with any statute, regulation, code or ordinance which may now or hereafter be made applicable to the Condominium or Association, or to make a reasonable accommodation or permit a reasonable modification in favor of handicapped, as may be defined by prevailing Federal or state laws or regulations applicable to the Association, Unit Owners, residents, tenants, or employees, then at any time and from time to time the Executive Board may effect an appropriate corrective amendment without the approval of the Unit Owners or the holders of any liens on all or any part of the Property, upon receipt by the Executive Board of an opinion from independent legal counsel to the effect that the proposed amendment is permitted by the terms of this Section. ARTICLE XVII AMENDMENTS TO BYLAWS Section 17.1. Amendments to Bylaws. Except for amendments of a material nature which ;must be effected in accordance with Section 11.4.1 above, the Bylaws may be amended only by vote of the majority of all of the members of the Executive Board, following Notice and Comment to all Unit Owners, at any meeting duly called for such purpose. Corrective amendments to the Bylaws may be effected in the same manner as amendments to the Declaration described in Section 16.8 above. {A771451:} KO725PG435,5 -37- ARTICLE XVIII RIGHTS TO NOTICE AND COMMENT; NOTICE AND HEARING Section 18.1. Right to Notice and Comment. Before the Executive Board amends the Bylaws or the Rules and Regulations, whenever the Condominium Documents require that an action be taken after 'Notice and Comment", and at any other time the Executive Board determines, the Unit Owners have the right to receive notice of the proposed action and the right to comment orally or in writing. Notice of the proposed action shall be given to each Unit Owner in writing and shall be delivered personally or by mail to all Unit Owners at such address as appears in the records of the Association, or published in a newsletter or similar publication which is routinely circulated to all Unit Owners. The notice shall be given not less than five (5) days before the proposed action is to be taken. The right to Notice and Comment does not entitle a Unit Owner to be heard at a formally constituted meeting. Section 18.2. Right to Notice and Hearing. Whenever the Condominium Documents require that an action be taken after "Notice and Hearing", the following procedure shall be observed: The party proposing to take the action (e.g., the Executive Board, a committee, an officer, the manager, etc.) shall give written notice of the proposed action to all Unit Owners or occupants of Units whose interest would be significantly affected by the proposed action. The notice shall include a general statement of the proposed action and the date, time and place of the hearing. At the hearing, the affected person shall have the right, personally or by a representative, to give testimony orally, in writing or both (as specified in the notice), subject to reasonable rules of procedure established by the party conducting the meeting to assure a prompt and orderly resolution of the issues. Such evidence shall be considered in making the decision but shall not bind the decision makers. The affected person shall be notified of the decision in the same manner in which notice of the meeting was given. Section 18.3. Appeals. Any Person having a right to Notice and Hearing shall have the right to appeal to the Executive Board from a decision of persons other than the Executive Board by filing a written notice of appeal with the Executive Board within ten (10) daysafter being notified of the decision. The Executive Board shall conduct a hearing within thirty (30) days, giving the same notice and observing the same procedures as were required for the original meeting. ARTICLE XIX CONVERTIBLE REAL ESTATE Section 19.1. Reservation. Declarant hereby explicitly reserves an option, until the seventh (7th) anniversary of the recording of this Declaration, to convert all or any portion of the Convertible Real Estate to Units, Limited Common Elements or any combination thereof from time to time in compliance with Section 3211 of the Act, (A771451:) BK 0725PG11356 -38- A without the consent of any Unit Owner or holder or insurer of any Security Interest in any Unit. This option to convert may be terminated prior to such anniversary only upon the filing of an amendment to this Declaration by the Declarant. Declarant expressly reserves the right to convert any or all portions of the Convertible Real Estate at any time, at different times, in any order, without limitation and without any requirement that any other real estate be converted, added or withdrawn; provided, however, that the Convertible Real Estate shall not exceed the area(s) described as such on Exhibit D hereto. There are no other limitations on this option to convert Convertible Real Estate. Section 19.2. Assurances. If the Convertible Real Estate is converted, the Building(s) on the Convertible Real Estate will be located approximately as shown on Exhibit C attabhed hereto and on the Subdivision/Land Development Plan described in Section 1.2.3'hereof. At such time as all of the Convertible Real Estate is completely converted, the maximum number of Units in the Condominium as an aggregate will be no more than sixty-nine (69) Units, subject to modification of the Subdivision/Land Development Plan. All Units that may be created within the Convertible Real Estate are restricted to residential use to the same extent as all other Units. Any Buildings to be constructed within the Convertible Real Estate and Units therein shall be compatible (but not necessarily the same) in quality of construction, materials and architectural style with the Buildings and Units on other portions of the Property. All restrictions in this Declaration affecting use, occupancy and alienation of Units and Limited Common Elements shall apply to Units and Limited Common Elements created within the Convertible Real Estate. No assurances are made as to any other improvements and Limited Common Elements to be made or created in the Convertible Real Estate, nor the proportion of Limited Common Elements to Units therein. The reallocation of Percentage Interests appurtenant to each Unit created within the Convertible Real Estate and the other existing Units shall be computed as required by Section 2.1 above. ARTICLE XX WITHDRAWABLE REAL ESTATE Section 20.1. Reservation to Withdraw. Declarant hereby explicitly reserves an option, until the seventh (7th) anniversary of the recording of this Declaration, to withdraw all or any portion of the Withdrawable Real Estate in compliance with Section 3212 of the Act, without the consent of any Unit Owner or holder or insurer of any Security Interest in any Unit. This option to withdraw may be terminated prior to such anniversary only upon the filing of an amendment to this Declaration by the Declarant. Declarant expressly reserves the right to withdraw any or all portions of the Withdrawable' Real Estate at any time, at different times, in any order, without limitation and without any requirement that any other real estate be converted, added or withdrawn; provided, however, that the Withdrawable Real Estate shall not exceed the area(s) described as such on Exhibit D hereto. There are no other limitations on this option to withdraw Withdrawable Real Estate. The Percentage Interest, relative voting strength in the Association and share of Common Expense liability of each Unit in the {A771451:} BK0725PG4357 -39- Condominium as of the date this Declaration or any amendments thereto are recorded will be unaffected by the withdrawal of all or any part of the Withdrawable Real Estate. In the event that Declarant shall withdraw all or any portion of the Withdrawable Real Estate, the assurances, if any, contained in this Declaration shall not apply to the Withdrawable Real Estate withdrawn from the Condominium. Section 20.2. Easements Reoardino Withdrawable Real Estate. If and when Withdrawable Real Estate is withdrawn from the Property in accordance with the provisions of this Declaration, the following reciprocal easements shall be created and granted in favor of and against the Condominium Unit Owners and the Association, on the one hand, and the owners and occupants of the portion of the Withdrawable Real Estate withdrawn from the Property, on the other hand: (a) A non-exclusive easement and right-of-way over, on, and upon any roads and streets created within the Property for ingress and egress' to and from any public streets serving the Property; (b) The right of access for the placement and maintenance of underground utility facilities to serve any owner of any portion of the Property, including, inter alia, electrical, gas, telephone, sewer and waterlines provided that the exercise of said rights does not materially interfere with the existing utility facilities; (c) The right to use and gain access to existing utility facilities located on the Property, including the waterlines, sanitary sewer and storm sewer facilities, and to tie into said facilities, together with the right to install and maintain new utility facilities, provided that the exercise of such rights does not materially interfere with the existing utility facilities; (d) The right to enter upon the Property at reasonable times for the purpose of laying, constructing, inspecting, maintaining, repairing or removing said utility facilities. Prior to withdrawing Withdrawable Real Estate, Declarant shall execute and record a Declaration of Reciprocal Easements creating the rights above, subject inter alia, to the following conditions: (a) The party exercising such easement rights for the installation of utility facilities shall be solely responsible for all expenses of whatever nature with regard to the initial construction and installation of said utility facilities; (b) Any party exercising the easement right to install utility facilities over, under or through the Property shall observe all applicable laws pertaining thereto. All work shall be done during reasonable times, following reasonable notice to any party who will be affected by the work, (A771451:} BKO725PG4358 - 40 - and shall be done in a manner which shall not unreasonably interfere with the use of the Property by the owners and occupants thereof; (c) The party exercising such easement right, at its sole cost, shall promptly restore the Property to its original condition; (d) The expense of operating, maintaining and repairing any area or facility subject to a reciprocal easement shall be equitably apportioned among the owners using said areas or easements, considering all pertinent use factors; and (e) The party exercising any easement right shall indemnify and hold harmless all other owners within the Property from all loss, damage, claims or expenses, including reasonable attorneys' fees, resulting from its negligent or improper exercise of the easements and other rights granted herein. ARTICLE XXI OPTION TO EXPAND THE CONDOMINIUM Section 21.1. Reservation to Expand. Declarant hereby explicitly reserves an option, until the seventh (7th) anniversary of the recording of this Declaration, to add Additional Real Estate to the Condominium in compliance with Section 3211 of the Act, without the consent of any Unit Owner or holder or insurer of any Security Interest in any Unit. This option to expand may be terminated prior to such anniversary only upon the filing by Declarant of an amendment to this Declaration. Declarant expressly reserves the right to add the Additional Real Estate at any time, or portions thereof, at different times, in any order, without limitation and without any requirement that any other real estate be added, converted or withdrawn; provided, however, that the Additional Real Estate shall not exceed the area described as such on Exhibit E hereto. There are noother limitations on this option to add Additional Real Estate to the Condominium. Any Additional Real Estate added to the Condominium shall be added as Convertible and Withdrawable Real Estate, subject to all of the provisions of Articles XIX and XX, inter alia, of this Declaration. Section 21.2. Assurances. Declarant makes no assurances as to the location and description of improvements and Common Elements which may be made or created within the Additional Real Estate. At such time as the Condominium is expanded, the maximum number of Units which may be created within the Additional Real Estate as an aggregate will be One Hundred Sixty -One (161), subject to modification of the Subdivision/Land Development Plan. An assurance is hereby given that any improvements to be constructed on the Additional Real Estate and the Units therein will be compatible in quality, size, materials and architectural style with the Units in the Property. Declarant expressly reserves the right to designate Common Elements (A771451:) Bi0725PG4359 -41 - in the Additional Real Estate which may be assigned subsequently as Limited Common Elements. Declarant makes no assurances as to the type, size or maximum number of such Common Elements or Limited Common Elements, nor the proportion of Limited Common Elements to Units therein, nor as to the assignment of Limited Common Elements to the Units. The reallocation of Percentage Interests in the Additional Real Estate and the Property shall be computed as set forth in Section 2.1 herein. All restrictions in this Declaration affecting use, occupancy and alienation of Units and Limited Common Elements shall apply to the Units and Limited Common Elements created in the Additional Real Estate. In the event that Declarant does not add the Additional Real Estate, or any portion thereof, the assurances contained in this Article shall not apply in any way to the Additional Real Estate, or any portion thereof, not added to the Condominium. ARTICLE XXII POWERS OF THE ASSOCIATION Section 22.1. Powers of the Association. Subject to the provisions of this Declaration, the Association shall have all of the powers designated in Section 3302 of the Act, including the right to assign its right to future income and the right to receive the payments made on account of the assessments for Common Expenses, provided that reserve funds held for future major repairs and replacements of the Common Elements may not be assigned or pledged; however, the Association shall not have the rights set forth in Section 3302(a)(18) of the Act with respect to a Master Association. Section 22.2. Meraer or Consolidation. On the earlier of the seventh (7th) anniversary of the recording of this Declaration or the date upon which Declarant owns no Units within the Condominium, the Association shall have the right to merge with one or more condominiums, provided that any such merger or consolidation shall be effected in accordance with Section 3223 of the Act. Section 22.3. Conveyance or Encumbrance of the Common Elements. Provided that Unit Owners entitled to cast at least eighty percent (80%) of the votes in the Association, including eighty percent (80%) of the votes allocated to Units not owned by Declarant, agree, portions of the Common Elements may be conveyed or subjected to a Security Interest by the Association. Any conveyance or encumbrance of the Common Elements by the Association shall be effected in strict accordance with Section 3318 of the Act. Section 22.4. Judgments Aaainst the Association. Any creditor of the Association pursuant to a Security Interest obtained under Section 22.1 above shall exercise its rights against the Common Elements before its judgment lien on any Unit may be enforced. Otherwise, as a general rule, any judgment for money against the Association, upon perfection as a lien on real property, shall not be a lien on the Common Elements, but shall constitute a lien against all of the Units in the {n»iasi:) BK072.5PG�+360 -42- Condominium at the time the judgment was entered. No other property of a Unit Owner is subject to the claims of creditors of the Association. Any Unit Owner may have his or her Unit released from the lien of the judgment upon payment of that portion of the lien attributable to his Unit in accordance with Section 3319(c) of the Act. After payment, the Association may not assess or have a lien against that Unit Owner's Unit for any portion of the Common Expense incurred in connection with that lien. A judgment indexed against the Association must be indexed against the Condominium and the Association, and when so indexed, shall constitute notice of the lien against the Units. ARTICLE XXIII TERMINATION OF THE CONDOMINIUM Section 23.1. Procedure for Termination. Except in the case of a taking of all of the Units in the Condominium by eminent domain, the Condominium may be terminated by agreement of Unit Owners of Units to which at least eighty percent (80%) of the votes in the Association are allocated and by agreement of Eligible Mortgagees which represent at least fifty-one percent (51 %) of the Unit estates subject to Mortgages held by those Eligible Mortgagees, provided that such termination shall be effected in full compliance with the provisions set forth in Section 3220 of the Act. ARTICLE XXIV INTERPRETATION Section 24.1. Interpretation. The provisions of this Declaration shall be liberally construed in Order to effectuate Declarant's desire to create a uniform plan for development'rand operation of a condominium project. The headings preceding the various paragraphs of this Declaration and the Table of Contents are intended solely for the convenience of readers of this Declaration. ARTICLE XXV SEVERABILITY Section 25.1. Severabilitv. The provisions of this Declaration shall be deemed independent and severable, and the invalidity or unenforceability of any provision or portion thereof shall not affect the validity or enforceability of any other provision or portion thereof unless such deletion shall destroy the uniform plan for development and operation of the condominium project which this Declaration is intended to create. (A771451:) BK0726.PG4361 - 43 - ARTICLE XXVI EFFECTIVE DATE Section 26.1. Effective Date. This Declaration shall become effective when it and the Plats and Plans have been recorded. {A7714S1: .O725PG 4362 (Signature Page Follows) 44 IN WITNESS WHEREOF, Declarant, inter)ding to be legally bou d hereby has 4? duly executed this Declaration, as of this t day of l4QrC , 2006. ATT -� ',it. ;. •Name: mn)c;Msel Title: g,ccr-e f-d•&D {A771451:) DECLARANT: KENSINGTON ARMS ASSOCIATES, a Pennsylvania limited partnership By: CAPITOL VIEW DEVELOPMENT CO., INC., General Flssrtner By Name. r.0 a tce M. Mt*'s Title: (mks} President -45- 0725P6063 COMMONWEALTH OF PENNSYLVANIA COUNTY OF d Lpv, ,6 c� Ili.i�t SS: On this, the alf ,�. }"tiday of Mardi , 2006, before me, a Notary Public, the undersigned officer, personally appeared Lawrence 11. Fican $ , who acknowledged himself to be thereeiee} President of CAPITOL VIEW DEVELOPMENT CO., INC., a Pennsylvania corporation (the "Corporation"), said Corporation being the General Partner of KENSINGTON ARMS ASSOCIATES, a Pennsylvania limited partnership (the "Partnership"), and that he as such officer, being authorized to do so pursuant to a resolution of the Corporation's board of directors dated /H it 2-0Aoee , a copy of which is recorded in Cumberland County Miscellaneous Book -10, Page y3eI'executed the foregoing instrument for the purpose therein contained by signing the name of the Corporation by himself as such officer in the Corporation`klcapacity as General Partner and as authorized by the Partnership. IN WITNESS WHEREOF, I have hereunto set my hand and official seal. My commission expires: /02) / ) O 8 {A771451:} BKO725PG4364 Notary Public (SEAL) Kort K Waning",Seal Notary Public Lemoyne Bore CumberlandCountyMy Commisslon Expires Dee. 1, 2068 Member Perms nrary7:,v-... . - .4 Notaries r EXHIBIT "A" LEGAL DESCRIPTION OF THE REAL ESTATE ALL THOSE CERTAIN four Tots or tracts of land situate in the Township of Upper Allen, County of Cumberland and Commonwealth of Pennsylvania, more particularly bounded and described in accordance with the Final Subdivision & Land Development Plan for Phase 1 of Kensington Place recorded in Cumberland County Plan Book 91, Page 88, and being Lots 1, 2, 3 and 7 thereon. Lot 1 containing 2.96 acres, more or less; Lot 2 containing1.88 acres, more or less; Lot 3 containing 1.37 acres, more or less; and Lot 7 containing 2.21 acres, more or less. BEING as to part, part of the same premises which Stonehedge Lane Associates, by its deed dated November 14, 2005 and recorded in the Office of the Recorder of Deeds for Cumberland County, Pennsylvania, in Deed Book 271, Page 4715 granted and conveyed unto Kensington Arms Associates, Declarant herein. BEING as to the remaining part, part of the same premises which Linden R. Gates, Jr., by his deed dated November 14, 2005 and recorded in the Office of the Recorder of Deeds for Cumberland County, Pennsylvania, in Deed Book 271, Page 4710 granted and conveyed unto Kensington Arms Associates, Declarant herein. r {A771451:) BK0725PG4365 (A771451:1 INTENTIONALLY OMITTED BK0725PG4366 EXHIBIT "C" PLATS AND PLANS The Plat for Melbourne Place, A Townhome Condominium, consisting of one (1) page dated March 31, 2006 is being filed in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania, concurrently with the filing of this Declaration, and said Plat is hereby incorporated herein and made an integral part hereof by this reference thereto. No Units or Limited Common Elements are being created with the recording of this Declaration. Consequently, no Plans are being filed herewith. At such time as Declarant exercises its option to convert all or any portion of the Convertible Real Estate and to create Units and/or Limited Common Elements therein in accordance with Section 3211 of the Act and Article XIX hereof, Declarant shall record an amendment to this Declaration, which shall include an amended Plat and Plans as required pursuant to the Act. (A771451:) (O725PG4367 {A771451:} EXHIBIT "D" LEGAL DESCRIPTION OF THE CONVERTIBLE/WITHDRAWABLE REAL ESTATE ALL THOSE CERTAIN lots or tracts of land situate in Upper Allen Township, Cumberland County, Pennsylvania more particularly bounded and described on Exhibit "A" to this Declaration. BKO725PG4368 EXHIBIT "E" LEGAL DESCRIPTION OF THE ADDITIONAL REAL ESTATE ALL THAT CERTAIN parcel or tract of land situate in the Township of Upper Alien, County of Cumberland and Commonwealth of Pennsylvania, more particularly bounded and described in accordance with Final Subdivision & Land Development Plan for Phase 1 of Kensington Place, recorded in Cumberland County Plan Book 91, Page 88, and being Lot R thereon, having 32.37 acres, more or Tess. BEING as to part, part of the same premises which Stonehedge Lane Associates, as Pennsylvania limited partnership, by its deed dated November 14, 2005 and recorded in Cumberland County Deed Book 271, Page 4715, granted and conveyed unto Kensington Arms Associates, a Pennsylvania limited partnership. AND BEING as to the remaining part, part of the same premises which Linden R. Gates, by his deed dated November 14, 2005 and recorded in Cumberland County Deed Book 271, Page 4710, granted and conveyed unto Kensington Arms Associates, a Pennsylvania limited partnership. (A771451:) BK0725PG4369 After recordation of this document, please return to: Robert M. Cherry, Esq. McNees, Wallace & Nurick P. 0. Box 1166 Harrisburg, PA 17108 COMMONWEALTH OF PENNSYLVANIA SS: COUNTY OF CUMBERLAND RECORDED in the Office of the Recorder of Deeds in and for said County, in Record Book , Page WITNESS my hand and official seal this day of , 2006. (A771451:1 0725PG4370 Recorder of Deeds be recorded. Curn1),:•rif.1 County PA • Recorder of Deeds DocuSign Envelope ID: 20E501CD-669C-40B3-8507-23790288022E STANDARD AGREEMENT FOR THE SALE OF REAL ESTATE This form recommended and approved for. but not restricted to use by, the members of the Pennsylvania Association of REALTORS® (PAR). ASR PARTIES BUYER(S): Laura Anne Weakland BUYER'S MAILING ADDRESS: 121 Walnut Street Carlisle, PA 17013 SELLER(S): Kaitlynn Benson SELLER'S MAILING ADDRESS: 190 Melbourne Lane Mechanicsburg, PA 17055 PROPERTY PROPERTY ADDRESS 190 Melbourne Lane, Mechanicsburg, Pennsylvania ZIP 17055 in the municipality of Upper Allen , County of Cumberland in the School District of Mechanicsburg , in the Commonwealth of Pennsylvania. Identification (e.g., Tax ID #; Parcel #; Lot, Block; Deed Book, Page, Recording Date): 421006460890190 BUYER'S RELATIONSHIP WITH PA LICENSED BROKER 0 No Business Relationship (Buyer is not represented by a broker) Broker (Company) Jack Gaughan Realtor ERA Company Address 106e Harrisburg Pike, Carliale, PA 17013 Company Phone (717) 243-8080 Company Fax (717) 243-0268 Broker is: ® Buyer Agent (Broker represents Buyer only) 0 Dual Agent (See Dual and/or Designated Agent box below) Licensee(s) (Name)David M Fleming Direct Phone(s) (717) 258-0034 Cell Phone(s) (717) 385-5209 Fax (717) 243-0268 Email Dave .Flemingssjgr.cora Licensee(s) is: ® Buyer Agent with Designated Agency ❑ Buyer Agent without Designated Agency ❑ Dual Agent (See Dual and/or Designated Agent box below) 0 Transaction Licensee (Broker and Licensee(s) provide real estate services but do not represent Buyer) SELLER'S RELATIONSHIP WITH PA LICENSED BROKER 0 No Business Relationship (Seller is not represented by a broker) Broker (Company) Keller Williams of Central PA Company Address 4242 Carlisle Pike Suite 151, Camp Hill, PA 17011 Company Phone (717)761-4300 Company Fax (717) 761-4338 Broker is: 0 Seller Agent (Broker represents Seller only) ❑ Dual Agent (See Dual and/or Designated Agent box below) Licensee(s) (Name)Jeff Chub ti Saruantha Lockhart Direct Phone(s) (717) 579-3492 Cell Phone(s) (717) 574-1197 Fax (717) 761-4338 Email jandskwrealty8gmail.com Licensee(s) is: ❑ Seller Agent with Designated Agency ❑ Seller Agent without Designated Agency ❑ Dual Agent (See Dual and/or Designated Agent box below) 0 Transaction Licensee (Broker and Licensee(s) provide real estate services but do not represent Seller) DUAL AND/OR DESIGNATED AGENCY A Broker is a Dual Agent when a Broker represents both Buyer and Seller in the same transaction. A Licensee is a Dual Agent when a Licensee represents Buyer and Seller in the same transaction. All of Broker's licensees are also Dual Agents UNLESS there are separate Designated Agents for Buyer and Seller. If the same Licensee is designated for Buyer and Seller, the Licensee is a Dual Agent. By signing this Agreement, Buyer and Seller each acknowledge having been previously informed of, and consented to, dual agency, if applicable. Buyerinittals: ,Z,4 it)/ Ow IPennsylvania Association of REALTORS' fad, Gaugben REALTORS ERA - Carlisle,1068 Ihnitlnug Pike Ca thie,PA 17013.165E Plume: e: (717)243-808D ASR Pagel of ll Revised 9/13 Seiler InitIaLsiff COPYRIGHT PENNSYLVANIA ASSOCIATION OF REALTORS® 2012 9113 Fax (717)243-0268 190 Melbourne - David Fleming Produced with rlpForme by tiptop's 113070 Fifteen Mlle Road, Fraser, Miel6Oan 48026 www.tlotoolx.com 1. By this Agreement, dated lurch 14, 1014 2 3 4 5 6 7 8 9 t D 4. 'Remaining balance will be paid in se1de nent. Seller hereby agrees to sell and convey to Buyer, who agrees to purchase, the identified Property. 2. PURCHASE PRICE AND DEPOSITS (1-10) (A) Purchase Price $ $128, 000.00 (One Hundred Twenty -Eight Thousand 1. Deposit at signing of'this Agreement: $ 2. Deposit within 2 days of the Execution Date of this Agreement. S 3. U.S. Dollars). to be paid by Buyer u follows: 2,000.00 11 (B) All funds paid by Buyer, *eluding deposits, will be paid by cheeky cashier's check. or wired funds. All funds paid by Buyer 12 within 30 DAYS of settlement, including funds paid at settlement, will be by cashier's cheek Or Wired fonds, but not* per - 13 sena! check. 14 (C) Deposita, regardless of the tom of payment and the person designated u payee, will be paid in U.S. Dollars to Broker for Seller 15 (unless otherwise stated here: ), 16 who will retain deposits in an maw account in conformity with all applicable laws and regulations notil consummation or ter - 17 mination of this Agreement. Only real estate brokers ire req}ilred to hold deposits in accordance with the rules and regulations of 18 the State Real Estate Commission. Checks tendered as deposit monies may be held encashed pending the execution of this 1.9 Agreement. 20 3. SELLER ASSIST (If Applicable) (1-10) 21 Seller will pay S or % of Purcbase•Price(0 if not speeitied) toward 22 Bayer's cost's, as permitted by the mortgage lender, if any. Seller is only obligated to pay up to the atnatint or percentage which is 23 approved by mortgage lender. 24 4. SETTLEMENT AND POSSESSION (140) 25 (A) Settlement Date is May 7 , 2014 , or before if Buyer and Seller agree. 26 (B) Settlement will occur in the county where the Property is located or in an adjacent county; during flannel business hours, unless 17 Buyer and Seller agree otherwise, 28 (C) At time of settlement, the following will be pro -rated on a daily basis between Buyer and Seller, reimbursing when: applicable: 29 current taxes (see Notice Regarding Real Estate Taxes); rents; interest on mortgage assumptions; condominium fees and home - 30 owner association hes; water andlor sewer fees. together with any other )tenable municipal service fees. All charges will be pm - 31 rated for the period(s)' covered. Seller will pay up to and including the date of settlement and Buyer will pay for all days follow - 32 ing settlement, unless otherwise stated here: ' 33 34 (D) Conveyance from Seller will bc•by feesimple deed of special warranty unless otherwise stated here: 35 36 (E) Payment of transfer taxes will be divided equally between Buyer and Seller unless otherwise atated•here: 37 78 (F) Possession is to be delivered by deed, existing keys and physical possession to a vacant Property free of debris, with all structures 39 broom -clean, et day and time of settlement, unless Seller, before signing this Agieeinent, has Identified in writing that the Property 40 is subject tea tease. 41 (G) If Seller has identified in writing that the Property is subject to q lease, possession is *lie delivered by deed, existing keys and 42 assignment of existing leases for the Property, together with security deposits and interest if any, at day and time of settlement. Seller 43 will not enter** any new leases, nor extend twitting leases, for the Property without the •written consent of Buyer. Buyer will 44 acknowledge existing lenge) by initiating the Iuse(s) at the execution of this Agreement unless otherwise 'stated in this Agreement 45. ❑ Tenant Occupled.Property Addendum (PAR For rn TOP) is attached. 46 5. DATES/TIME IS OF THE ESSENCE (1-16) 47 (A) Witten aeceptpnce of all patties will be on or before: March 14 , 2 0'2.4 48 .(B) The Settlement Date and all other dates and times identified for the performance of any obligations of this Agreement arc of the 49 essence and are binding. 50 (C) The Execution Date of this Agreement is the date when Buyer and Seller have indicated full acceptance of this Agreement by sign - 51 ing and/or initleling it. For papaws of this Agreement, the number of days will be counted from the Execution Date, excluding 52 die day this Agreement was executed and including the last day of the time period. All changes to this Agreement should be ini- 53 doled and dated. 54 (D) The:Settlement Date is not extended by any other provision of this Agreement and may only be extended by mutual written agrec- 55 meat of the parties. 56 (5) Certain terms sed time periods we pre-printed in this Agreement as a convenience to the Buyer and Seller. All pre-printed teens 57 and time periods are negotiable and may be changed by :hiking. out the pre-printed text and Inserting different terms acceptable 58 to all parties. 39 6. ZONING (1-10) 60 Failure of this Agreement to contain the zoning classification (except• in cases where the property (and each parcel thereof,. If subdi- 61 vidable) is zoned solely or primarily to permit single-family dwellings) will render this Agreement voidable at Buyer's option, and, if 62 voided, any deposits tendered by the Buyer will be returned to the Buyer without any requirement for court action. 63 Zoning Classification: Residential 64 Buyer Initials•. P ASR Page 2 of 11 Revised 9/13 Formebr akloals 1070 FaNelMs Road, Roser. Wilton 411025 mahtiolganto Sdier Initiatri7V3l 190 Melbourne - 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 '80 81 82 83 84 85 86' 87 RB 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 (C) 'LOS 106 107 108 109 110 111 112 113 (E) 114 115 116 117 118 119 120 121 122 123 J24 125 126 127 128 129 130 7: FIXTURES AND PERSONAL PROPERTY (1.10) (A) INCLUDED in ibis sale are all existing items permanently installed in the Property. free of liens, and other items including plumbing; heating radiator covers; lighting fixtures (ncluding chandeliers and ceiling fans); pool and spa equipment (including coved anis cleaning equipment); electric animal fencing systems (excluding collars); garage door openers and transmitters; tele- vision antennas; unpotted shrubbery, plantings and trees; any remaining heating and cooking fuels stored on the Property at the time of settlement; strioke detectors and carbon monoxide detectors; sump pumps; storage xhedr, fences; mailboxes; well to wall carpeting: existing window screens. storm windows and screen/storm doors( window covering hardware, shades and blinds; awnings; built-in air conditioners; built in appliances; the range/oven, unless otherwise stated; and, If owned, water treatment sys- tems, propane tanks, satellite dishes and security aystems,Also included: Refrigerator, Range/Oven, Microwave Oven, Dishwaaher, ifaeher, Dryer, Two (2) Ceiling Fauns (B) The following items are LEASED (not owned by Seller). Contact the provider/vendor for more information (e.g., water 'treatment systems, propane tanks, satellite disbes and security systems): (Q EXCLUDED fixtures and items: 8. MORTGAGE CONTINGENCY (1-10) ❑ WAIVED. This sale is NOT contingent on mortgage financing, .although Buyer ties may include an appraisal contingency. ® ELECTED. (A) This sale is contingent upon Buyer obtaining tnortgage financing according to the following terms: may obtain mortgage financing and/or the par - First Mortgage on the Property LoanAmountS 128, 000.00 Minimum Term 3 0 years Type of mortgage Conventional Loan -To -Value (LTV) ratio: For non-FHANA loans LTV ratio not to exceed Mortgage lender Wells Fargo Interest rate 4.500 %; however, Buyer agrees to accept the interest rate as may be committed by the mortgage lender, not to exceed a maxininm interest rate of 4.75 0 %. Discount points, loan origination, loan placement and other fees charged by the lender es a percentage of the mortgage loan (exclud- ing any mortgage insurance premiums or VA funding fee) not to exceed % (0% if not specified) of the mortgage loan. S'a (B) (D) Second Mortgage on the Property LonnAmount S Minimum Term years Type of mortgage Loan -To -Value (LTV) ratio: For-con-FHA/VA loans LTV ratio•not to -exceed 9E Mortgage lender Interest rate 96; however. Buyer agrees to accept the interest rate as may be committed by the mortgage lender, not m exceed a maximum interest rate of %. Discount points, loan origination, loan placement and other fees charged by the lender as a percentage of the mortgage loan (exclud- ing any mortgage insurance premiums or VA funding fee) not to exceed %.(0%if not•specified) of the mortgage loan. The interest rates) and fee(s) provisions In Paragraph 8(A) are satisfied if the mortgage lender(s) gives Buyer the right to guar- antee the interest rate(s) and fee(s) at or below the maximum evels stated. If lender(s) gives Buyer the right to lock in the inter- est rate(s), Buyer will do so at least 15 days before Settlement Date. Buyer gives Seller the.right, at -Seller's sole option and es permItted by law and the mortgage lender(s), to contribute financially, without promise of reimbursement, to clic Boyer and/or the mortgage Itnder(s) to make the above mortgage term(s) available to Buyer. Within 15 ;;_:days (7 if not specified) from the Execution Date of this Agreement. Buyer will make.a completed, written mort- gage appl.15:;: cstion (including payment for and ordering of appraisal and credit reports' without delay, at the time required by lender(s)) for the mortgage teens and to the mortgage lender(s) identified in Paragraph 8(A), if any, otherwise to a responsible mortgage lender(s) of Buyer's choice. Broker for Buyer, if any; otherwise Broker for Seiler, is authorized to communicate with the mortgage lender(s) to assist in the mortgage loan process. Buyer will be in defeult of this Agreement If Buyer furnishes. false, information to anyone concerning Buyer's financial and/or employment status, fails to cooperate in good faith with processing the mortgage loan application (including delay of the appraisal), fails to lock in interest rate(s) is stated in Paragraph 8(B), or otherwise causes the lender to rejeet, refuse to approve or issue a Mortgage loan comntitmenL 1. Mortgage Commitment Date: March 2 8 , 2 014 :Upon receiving a mortgage conunitnient, Buyer will promptly deliver a copy of the commitment to Seller. 2. If Seller does not receive a copy of the mortgage commitments) by the Mortgage Commitment Date, Seller may terminate this Agreement by written notice to Buyer. Seller's right to terminate continues until Buyer delivers a mortgage commitment to Seller. Until Seller terminates this Agreement, Buyer is obligated•to make a good=fnith effort to.obtain mortgage financing. 3. Seller may terminate this Agreetnentby written notice to Buyer after the Mortgage Commit:nent Date if the mortgage commitment: n. Does not satisfy the terms of Paragraph 8(A), OR. b. Conti ins' any condition not specified in this Agreement (e.g., the Buyer must settle an another property, an Appraisal must be roireived'by the lender, or the mortgage commitment is not valid through the Settlement Date) that is not satisfied and/or romo red in writing by the mortgage lender(a) within 7 DAYS after the Mortgage•Commitmeat.Date in Paragraph 8(E)(1). or any extension thereof, other than those conditions that are customarily satisfied at or near settlement (c.g„ obtaining insurance, confirmingemployment). 4. If this Agreement is terminated pursuant to Paragraphs 8(E)(2) or (3). or the mortgage loah(s) is not obtained for settlement, all deposit monies will be returned to Buyer according to the terms of Paragraph' 23 and this Agreement will be 'VOID. Buyer will be responsible for any costs incurred by Buyer for any inspections or certifications obtained according to the terms of this Agreement, and any'costa incurred by Buyer for. (1) Title search, title insurance and/or mechanics' lien insurance, or any fee for cancellation; (2) Flood insurance, fire insurance, hazard insurance, mine subsidence insurance, or any fee for cancel - la tom (3)Appraistel fees and charges paid inadvance to mortgage lencleds). --� 131 Buyer Initrlst L4(th ASR Pape3 of 11 Revised 9/13 1' Mutedwanz>pFoin br=Mark sIOW Fawn WeROW, Paster, WotiaaeMON ittleatichan SeDerInitialr, 190 Melbourne - 132 (F) If the mottgage lender(s), or a property and casualty insurer providing insurance required by the mortgage lender(s), requires 133 repairs to, the Property, Buyer will, upon receiving the requirements, deliver a copy of the requirements to Seller. Within 5 134 DAYS. of receiving the copy of the requirements, Seller will notify Buyer whether Seller will make the required repairs at Seller's 135 expense. 136 1. If Seller makes the required repairs to the satisfaction. of the mortgage lender and/or insurer, Buyer accepts the Property and 137 agrees to the RELEASE in Paragraph 25 of this Agreement. 138 2. If Seller will not make therequired repairs, or if Seller fails to respond within the stated time, Buyer will, within 5 139 DAYS,.notify Seller of Buyer's choice to: 140 a. Make; the repairs/improvements at Buyer's expense, with permission and access 10 the Property given by Seller, which 141 will not be unreasonably withheld, OR 142 b. Terminate this Agreement by written notice to Seiler, with all deposit monies• returned to Buyer according to the terms of 143. Paragraph 23 of this Agreement. 144 If Buyer fails to respond within the time stated in Paragraph 8(F)(2) or fails to terminate this Agreement by written notice 145 to Sellerrrltban that time, Buyer will accept the Property and agree to the RELEASE In Paragraph 25 of this Agreement. 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 1.64 165 I66 >r FHA/VA, IF APPLICABLE • (G) It is expressly agreed that notwithstanding any other provisions of this contract, Buyer will not be obligated to complete the pur- chase of the Property described herein or to incur any penalty by forfeiture of earnest Money deposits or otherwise unless Buyer has been given, in accordance with HUD/FHA or VA requirements, a written statement by the Federal Housing Commissioner, Veterans Administration, or a Direct Endorsement Lender setting forth the appraised value of the Property of not less than S (the Purchase Price a4 stated in this Agreement). Buyer will have the privilege and option of proceeding with consummation of the contract without regard to the amount of the appraised valuation. The appraised valuation is arrived at to determine the maximum mortgage the Department of Housing and Urban Development will insure. HUD does not warrant the value nor the condition of the Property. Buyer should satisfy himself/herself that the price and condition of the Property are acceptable. Warning: Section 1010 of Title 18, U.S.C., Department of Housing and Urban Development and Federal Housing Administration Transactions, provides, "Whoever for the purpose of ... influencing in any way the action of such Department, makes, passes, utters or publishes any statement, knowing the same to be false shall be frned'under'this title or imprisoned not more than cilia years, or both." (II) U.S. Department of Housing and Urban Development (HUD) NOTICE TO PURCHASERS: Buyer's Acknowledgement ❑ Buyer has received the HUD Notice "For Your Protection: Get. a Home Inspection." Buyer understands the importance of getting an independent home inspection and has thought aboutthis before signing this Agreement. Buyer understands that • FHA will not perform a home inspection nor guarantee the price or condition of the Property. (1) Certification We the undersigned, Seller(s) and Buyer(s) party to this transaction each certify that the terms of this. contract for purchase are true• to the best of our knowledge and belief, and that any other agreement entered into by any of these parties in connection With this transaction is attached to this Agreement. 167 9. CHANGE IN BUYER'S FINANCIAL STATUS (3-11) 168 In the event of a change in Buyer's financial status affecting Buyer's ability to purchase, Buyer shall promptly notify Seller and 169 lender(s) to whom 'rhe Buyer submitted mortgage application, if any. A change in financial status includes, but is not limited to, loss 170 or a charfge in employment; failure or loss of sale of Buyer's home; Buyer's having incurred a new financial obligation; entry of a 171 judgment against Buyer. Buyer understands that applying for and/or incurring an additional financial obligation may affect 172 Buyer's ability to purchase. 173 10. SELLER REPRESENTATIONS (1-10) 174 (A) Radon Testing and Remediation (See Notice Regarding Radon) 175 Seller has no knowledge about the presence or absence of radon unless checked below: 176 ❑ 1. Seller has knowledge that the Property was tested on the dates and by the methods (e.g. charcoal canister, alpha track, 177 etc.), which produced the resultsindicated below: 178 Date Type of Test Results (picoCuries/liter orworking levels) Name of Testing Service 179 180 181 0 2. Seller has knowledge that the Property had radon removal system(s) installed as indicated below: 182 Date Installed Type of System Provider 183 184 115 Copies; of all available test reports will be delivered to Buyer with this Agreement. Seller does not warrant the meth - 186 ods ot'• the results of radon tests. 181 (B) Status of Water 188 Seller represents that the Property is served by: 189 ® .Public Water 0 Community Water 0 On-site Water 0 None 0 190 (C) Status of Sewer 191 Seller represents that the Property is served by: 192 ® Public Sewer 0 Community Sewage Disposal System 0 Ten -Acre Permit Exemption (see Sewage Notice 2) 193 0 Individual On -lot Sewage Disposal System (see Sewage Notice 1) 0 Holding Tank (see Sewage Notice 3) 194 0 Individual On -lot Sewage Disposal System in Proximity to Well (see Sewage Notice 1; see Sewage Notice 4, if applicable) 195 0 Tlone (see Sewage Notice 1) 0 None Available/PemtitLimitations in Effect (sec Sewage Notice 5) 196 0 197 Buyer Initials: iAt ASR Page 4 0111 Revised 9/13 Produced wih :loran* by tlptoali 11070 MOW Mk Road, Fmur, Michigan 48021 wwr.liotoalkcmp Seller Initials✓'�A 190 Melbourne - 198 (D) Historic Preservation 199 200 201 (E) 202 203 204 205 206 207 (F) 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 22S 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 2.50 251 252 253 254 255 256 257 258 259 260 261 262 Seller is not aware of historic preservation restrictions regarding the Property unless otherwise stated here: ❑ Property, or a portion of ft, is preferentially assessed for tax purposes under the following Act(s) (see Notices Regarding Land Use Restrictions): ❑ Farmland and Forest Land Assessment Act (Clean and Green Program; Act'319 of 1974; 72 P.S. § 5490.1 et seq.) o Open Space Act (Act 442 of 1967; 32 PS.. § 5001 et seq.) ❑ Agricultural Area Security Law (Act 43 of 1981;3 P.S. §901 of seq,) D Other' Seller represents that, as of the date Seller signed this Agreement, no public improvement, condominium or homeowner associa- tion assessments have been made against the Property which remain unpaid, and that no notice by any government or public authority has been served upon Seller or anyone on Seller's behalf, including notices relating to violations of zoning, housing, building, safety; or fire ordinances that remain uncorrected, and that Seller knows of no condition that would constitute a viola- tion of any such ordinances that -remain uncorrected, unless otherwise specified here: (G) Seller knows ofno otherpotential notices (including violations) and/or assessments except as follows: (H) Access to a public road may.require issuance of a highway occupancy permit from the Department of Transportation. I1. WAIVER OF CONTINGENCIES (9-05) If this Agreement is contingent on Buyer's right to inspect and/or repair the Property, or to verify insurability, environmental conditions, boundaries, certifications, zoning classification or use, or any other information regarding the Property, Buyer's failure to exercise any of Buyer's options within the limes set forth in this Agreement is a WAIVER of that contingency and Buyer accepts the Property.and agrees to the RELEASE in Paragraph 25 of this Agreement. 12. INSPECTIONS (9-13) (See Notices. Regarding Property and Environmental Inspections) (A) Rights and Responsibilities 1. Seller will provide access to insurers' representatives and, as may be required by this Agreement or by mortgage lender(s), to surveyors, municipal officials, appraisers and inspectors. All parties. and their teal estate licensce(s) may attend any inspections. 2. Buyer may make a pro -settlement walk-through inspection of the Property. Buyer's right to this inspection is not waived by any other provision•of this Agreement. 3. Seller will have heating and all utilities (including fuel(a)) on for all inspections/appraisals. 4. All inspectors, including home Inspectors, are authorized by Buyer to provide a copy of any inspection.Report to Broker for Buyer. 5. Seller has the right, upon request, to receive a free copy of any inspection Report.from the party for whom it wasprepared. (B) Buyer waives Or elects at Buyer's expense to have the following inspections, certifications, and investigations (referred to as "Inspection" or, "Inspections") performed by professional contractors, home inspectors, engineers, architects and other properly licensed or otherwise .qualified professionals. If the same inspector is inspecting more than one system, the inspector must com- ply with the Horne Inspection Law. (See Notice Regarding the Home Inspection Law) (C) For elected Inspection(s), Buyer will, within the Contingency Period(s) stated in Paragraph 13(A), complete Inspections, obtain any Inspection Reports or results (referred to as "Report" or "Reports"), and accept the Property, terminate this Agreement,. or submit a Written Corrective Proposal(s) to Seller, according to the terms.of Paragraph 13(13). Home/PrcpertyInspections and Environmental Hazards (mold, etc.) .ccted Buyer may conduct an inspection of the Property's structural components; roof; exterior windows and. exterior Waived L Wi doors; cxt'erior siding, Exterior Insulation and Finish Systems, fascia, gutters and downspouts; swimming pools, hot 1 tubs and spas; appliances; electrical systems; interior and exterior plumbing; public sewer systems; heating and cool- ing systems; water penetration; electromagnetic fields; wetlands and flood plain delineation; structure square footage; mold and other environmental hazards (e.g., fungi, indoor air quality, asbestos, uttdergiound storage tanks, etc.); and any other items Buyer may select. If Buyer elects to have a home inspection of the Property, as defined in the Home Inspection Law, the home inspection must be performed by a full member in good standing of a national home inspection association, or a person supervised by a full member of a national home inspection association, in accordance with the ethical standards and code of conduct or practice of that association, or by a properly licensed or registered engineer or architect: (See Notice Regarding the Home Inspection Law) Wood Infestation A2Ifcted Buyer may obtain a written "Wood -Destroying Insect Infestation Inspection Report" from an inspector certified as Waived �AU/ a wood -destroying pests pesticide applicator and will deliver it and all supporting documents and drawings provid- / ed by the inspector to Seller. The Report is to be made satisfactory to and in compliance with applicable laws, mort- gage lender requirements, and/or Federal Insuring and. Guaranteeing Agency requirement,'. The Inspection is to be limited to. all readily -visible and accessible areas of all structures on the Property, except fences. If the Inspection reveals active infestation(s), Buyer, at Buyer's Expense, may obtain a Proposal from a wood -destroying pests pes- ticide applicator to treat the Property. lithe Inspection reveals damage from active or previous infestation(s), Buyer may obtain a written Report from a professional contractor, home inspector or structural engineer that is limited to structural:damage to the Property caused by wood -destroying organisms and a Proposal to repair the.Property. Water Service Elected Buyer may obtain an Inspection of the quality and quantity of the water•system from a properly licensed or otherwise Waived / qualified water/well testing company. If and as required by the inspection company, Seller, at Seller's expense, will .1.41d/ locate and:provide access to the on-site (or individual) water system. Seller will restore the Property to its previous con- dition, atSe11e is expense, prior to settlement. 263 Buyer Initials: ASR Page Sof11 Revised 9113 Produced with sipFom.by slpLopix 15070 Shen Mae Road, Freer, Michigan 48026 wwwaloLadx,cem Seller Initial 190 Melbourne - 264 Radon 265 I ted Buyer may obtain a radon test of the Property from a certified inspector. The U.S. Environmental Protection Waived 266 Agency (EPA) advises corrective action if the average annual exposure to radon is equal to or higher than 0.02 / 267 working levels or 4 picoCuries/liter (4pCi/L). 268 On -lot Sewage (If Applicable) 269 Elected Buyer may obtain an Inspection of the individual on -lot sewage disposal system from a qualified, professionalaiVed 270 / inspector. If and as required by the inspection company, Seller, at Seller's expense, will locate, provide access to, / (% 271 and empty the individual on -lot sewage.disposal system. Setter will restore the. Property to its previous condition, 272 at Seller's expense, prior to settlement. See paragraph 13(C) for more inforrnation tegarding'the Individual Qi -lot 273 Sewage Inspection Contingency. 274 Property and Flood Insurance 275 Elected Buyer may determine the insurability of the Property by making application for.property and casualty insurance for Waived 276 /,ar.)/ the Property to a responsible insurer. Bicker for Buyer, if any, Otherwise Broker for Seller, may communicate with / 277 the insurer to assist in the insurance process. If the Property is located in a flood plain, Buyer. may be.required to 278 carry flood. insurance at Buyer's expense, which.may need to be ordered 14 days or more prior to Settlement Date. 279 .Revised flood maps and changes to Federal law may substantially increase future flood. insurance premiums or 280 require insurance for for formerly exempt properties. Buyer should consult with one or more flood insurance 281 agents regarding the need for flood insurance and possible premium increases. 282 Propertypoundaries 283 Elected Buyer may engage the services of a surveyor, tide abstractor, or other qualified professional to assess the legal Walved 284 JAW/ description, certainty and location of boundaries and/or quantum of land. Most Sellers have not had the Property / 285 surveyed as .it Is not .a requirement of'property transferin Penosy]Vania. Any fences, hedges, walls and other natural 286 or constructed' barriers may or may not represent the trueboundary lines of the Property. Any numerical represcn- 287 talons of size of property arc.approxirnadons only and may be inaccurate. 288 Deeds, Restrictions' and Zoning 289 Elected Buyer may investigate easements, deed and use restrictions (including any historic preservation restrictions or ordi- Waived 290) nances) that apply to the Property and review local zoning ordinances. Buyer may verify that the present use of the ,/ 291 Property (such as in-law quarters, apartments, home office, day care) is permitted and may elect to make the 292 Agreement contingent upon an anticipated use. Present use: 293 Lead -Based Paint Hazards (For Properties prior to 1978:only) 294 Before Buyer is obligated to purchase a residential dwelling built prior to 1978, Buyer has the option to conduct a 295 V risk assessment and/or inspection of the Property for the presence of lead-based paint and/or lead-based paint h Da96 ards unless Buyer waives that right. Regardless of whether thls inspection Is elected or waived, the Resident/ 297 Lead -Based Paint Hazard Reduction Act requires a Seller of property built prior to 1978 to provide the ' 298 �'y Buyer with an EPA -approved lead hazards information pamphlet titled Protect Your Family from Lead in 299 Your Halite,. along with a separate fora/,. attached to this Agreement, disclosing Seller's knowledge of lead - 300 based paint hazards and any lead-based paint records regarding the Property. (See Notices Regarding 301 Residential Lead -Based Paint Hazard Reduction Act) 302 Other .' 303 Elected Aygived 304 / / 305 306 The Inspections elected above•do not apply to the followingezisting conditions and/or items: 307 3w 308 309 13. INSPECTION CONTINGENCY (1-10) 310 (A) The Contingency Period is 21 days (10 if not specified) from the Execution Date of this Agreement for each Inspection elect - 311 ed in Paragraph 12(C), except the following: 312 Inspection(s) Contingency Period 313 314 31.5 316 317 (B) Except as stated in Paragraph 13(C), if the result of any Inspection elected in Paragraph 12(C) is unsatisfactory to Buyer, Buyer 318 will, within tate stated Contingency Perlod: . 319 1. Accept the Property with the Information stated in the Report(s) and agree to the RELEASE in Paragraph 25 of this Agreement, OR 320 2. Terminate this Agreement by written notice to Seller, with all deposit monies returned to Buyer according to die terms of 321 Paragraph 23 of this Agreement, OR 322 3. Present the Report(s) to Seller with a Written Corrective Proposal (`Proposal") listing corrections and/or credits desired by Buyer. 323 The Proposal may, but is hot required to, include the name(s) of a properly licensed or qualified professionals) to perform the cor- 324 rections requested in the Proposal, provisions for payment, including retests, and a projected date for completion of the corec- 325 tions. Buyer agrees that Seller will not be held liable for corrections that do not comply with mortgage lender or govemmental 326 requirements if performed in a workmanlike manner according to the terms of Buyer's Proposal. 327 a. No Iater than days (5 if not.specified) from the end of the Contingency Period(s), Seller will inform Buyer in writ - 328 ing that Seller will:: 329 (1) Satisfy all theterms of Buyer's Proposal(s), OR 330 (2) Not•satisfy all the terms of Buyer's Proposal(s) 331 Bayer Initials K{W/ 7 ASR Page 6 of 11 Settee Initial Revised 9/13 Produced wee zlpForms by ziplapts 18070 Fifteen Mee Read Fraser. MkNgan 4026 www.zletada corn days days days days 190 Melbourne - 332 b. If Seller .agrees to satisfy the terms of Buyer's Proposal, Buyer accepts the Property and agrees to the RELEASE in 333 Paragraph 25 of this Agreement 334 c. Within days (2 if not specified) of the receipt. of wriuen notification that Seller will not satisfy all terms of Buyer's 335 Proposal, or the time stated in paragraph 13(B)(3)(a) if Seller fails to choose either option in writing, whichever occurs 336 first, Buyer will: 337 (1) Accept the Property with the information stated in the Report(a) and agree to the RELEASE .in Paragraph 25 of this 338 . Agreement, OR 339 (2) Terminate' this Agreement by written notice to Seller, with all deposit monies returned. to Buyer according .to the terms 340 of Paragraph 23 of this Agreement, OR 341 (3) Enter .into a 'mutually acceptable written agreement with Seller, providing for any repairs or improvements to the 342 Property and/or any credit to Buyer at settlement, as acceptable to the mortgage lender, ifany. 343 If Buyer fails to respond within the time stated in Paragraph 13(B)(3)(c) or faits to terminate this Agreement by 344 written notice to Seller within that time, Buyer will accept the Property and agree, to the RELEASE 'in Paragraph 345 25 of this Agreement. 346 (C) If a Report reveals the need to expand or replace the existing individual on-lot sewage disposal system, Seller may; within 347 days (25 if notspecified) of receiving the Report, submit a Proposal to Buyer. The Proposal will include, but not be limited to, the 348 name of the company to perform the expansion or replacement; provisions for payment, including retests; and a projected com- 349 pletion date for `corrective measures. Within 5 DAYS of receiving Seller's Proposal, or if no Proposal is provided within the 350 stated time, Buyer will notify Seller in writing of Buyer's choice to: 351 1. Agree to the terms • of the Proposal, accept the Property and agree to the RELEASE.in Paragraph 25 of this Agreement, OR 352 2. Terminate this Agreement by written notice to Seller, with all deposit monies returned to Buyer according to the terms of 353 Paragraph 23 of this Agreement, OR 354 3. Accept the Property and the existing system and agree to the RELEASE in Paragraph 25 of this Agreement. If required by any 355 mortgage lender and/or any governmental authority, Buyer will correct the defects before settlement or within the time required 356 by the' mortgage.lender and/or governmental authority, at Buyer's sole expense. with permission and access to the Property given 357 by Seller, which may not be Unreasonably withheld. If Seller denies Buyer permission and/or access to correct the defects, Buyer 358 may. within 5 DAYS of Seller's denial, terminate this Agreement by written notice to Seller, with all deposit monies returned 359 'to Buyer according to the terms of Paragraph 23 of this Agreement. 360 If Buyer fans to respond within the time stated in Paragraph 13(C) or fails to terminate this Agreement by written notice 361 to Seller within that time, Buyer will accept the Property and agree to the RELEASE in Paragraph 25 of this Agreement. 362 14. NOTICES, ASSESSMENTS AND MUNICIPAL REQUIREMENTS (1-10) 363 (A) In the event any notices, including violations, and/or assessments are received after Seller has 'signed this Agreement and before 364 settlement,.Seller will within 5 DAYS of receiving the notices and/or assessments provide a copy of the notices andlor assess- 365 meat to Buyer and will notify Buyer in writing that Seller will: 366 1. Fully comply with the notices and/or assessments, at Seller's expense, before settlement. If Seller fully complies with the 367 notices and/or assessments, Buyer accepts the Property and agrees to the RELEASE in Paragraph 25 of this Agreement. OR 368 2. Not comply with the notices and/or assessments. If Seller chooses not to comply with the notices and/or assessments, or falls 369 within the stated time to notify Buyer whether Seller will comply, Buyer will notify SeUer.in writing within 5 DAYS 370 that.Buye>rwill: 371 a. Comply with the notices and/or assessments at Buyer's expense, accept the Property, and agree to the RELEASE in 372 Paragraph 25 of this Agreement, OR 373 b. Terminate this Agreement by written notice to Seller, with all deposit monies returned to Buyer according to the terms of 374 Paragraph.23 of this Agreement 375 If Buyer fails to respond within the lime stated in Paragraph 14(A)(2) or:fails to terminate this.Agreement by-written notice 376 to Seller within that time, Buyer will accept. the Property and agree to the.RELEASE in Paragraph 25 of this Agreement. 377 (B) If required by raw, within 30 DAYS from the.Execution Date of this Agreement, but in no case later than 15 DAYS prior to 378 Settlement Date, Seller will order at Seller's expense a certification from the appropriate municipal department(s) disclosing notice 379 of any uncorrected violations of zoning, housing, building, safety or fire ordinances and/or a .certificate- permitting occupancy of the 380 Property. If Btiyer receives a notice of any required repairs/improvements, Buyer will promptly deliver a copy of the notice to Seller. 381 1. Within 5 DAYS of receiving notice from the municipality that repairs/improvements are required, Seller will deliver a 382 copy of the.notice to Buyer and notify Buyer in writing that Seller will: , 383 a. Make the required repairs/improvements to the satisfaction of the municipality. If Seller makes the required 384 repairs/improvements, Buyer accepts the Property and agrees to the RELEASE in Paragraph 25 of this Agreement, OR 385 b. Not make the required repairshmprovements. If Seller chooses not to make the required repairs/improvements, Buyer will 386 'notify Seller in writing within 5 DAYS that Buyer will: 387 (J) Make the repairs/improvements at Buyer's' expense, with permission and access to the Property given by Seller, which 388 will not be unreasonably withheld, OR 389 (2) Terminate this Agreement by written notice to Seller, with all deposit monies returned to Buyer according to the terms 390 of Paragraph 23 of this Agreement. 391 If Buyer fails to respond within the time stated in Paragraph 14(B)(1)(b) or fails to terminate this Agreement by 392 written notice to Seller within that time, Buyer will accept the Property and agree to the RELEASE In Paragraph 393 25 of this Agreement, and Buyer accepts the responsibility to perform the repaira/improvements according to the 394 tern's of the notice provided by the municipality. 395 2. If Seller . denies Buyer permission to make the required repairs/improvements, or does not provide Buyer access before 396 Settemertt Date to make the required rcpairs/improvements, Buyer may, within 5 DAYS, terminate this Agreement.by 397 written notice to Seller, with all deposit monies returned to'Buyer' according to the terms of.Paragraph 23 of this Agreement. 398 3. If repairs/improvements are required and Seller fails to provide a copy of the notice to Buyer as required in this Paragraph, Seller 399 will perform all repairs/improvements as required by the notice at Seller's expense. Paragraph 14(B)(3) will survive settlement 400 Buyer Initials: /' ASR Page 7 of 11 Setler1nitials f�l4/ A Revised 9/13 Produced vet *Forme 6Y *Lei* 11070 Mon Mile Road, Fraser. M lehiGeo 48025 lmsrsalat adsma 190 Melbourne - 401 15. CONDOMINIUM/PLANNED COMMUNITY (HOMEOWNER ASSOCIATIONS) RESALE NOTICE (1-10) 402 Property is NOT a CondoMinium or part of a Planned Community unless checked below. 403 ❑ CONDOMINIUM. The Property is a unit of a condominium that Is primarily run by a unit owners' association. Section.3407 of the 404 Uniform Condominium Act of Pennsylvania (see Notice Regarding Condominiums and Planned Communities) requires Seller to 405 furnish Buyer with a Certificate of Resale and copies of the condominium declaration (other than plats and plans), the bylaws and 406 the rules and regulations of the association. 407 ® PLANNED COMMUNITY (HOMEOWNER ASSOCIATION). The Property is part of a planned community as defined by the 408 Uniform Planned Community Act (see Notice Regarding Condominiums and Planned Communities). Section 5407(a) of the Act 409 requires Seller. to furnish Buyer with a copy of the Declaration (other than plats and plans), the bylaws, the rules and regulations 410 of the association, and a Certificate containing the provisions set forth in section 5407(a)of the Act. 411 THE FOLLOWING APPLIES TO PROPERTIES THAT ARE PART OF A CONDOINIUM OR A PLANNED COMMUNITY. 412 (A) Within 15, DAYS from the Execution Date of this Agreement, Seller, at Seller's.expertse, will request from the association a 413 Certificate of Resale and any other documents necessary to enable Seiler to comply with the relevant Act. The Act provides that 414 the association is required to provide these documents within 10 days of Seller's request. 415 (B) Seller will promptly deliver to Buyer all documents received from the association. Under the Act, Seller .is not liable to Buyer for 416 the failure of the association to provide the Certificate in a timely manner or for any incorrect information provided by the asso- 417 elation in the Certificate. 418 (C) The Act provides that Buyer may declare this Agreement VOID at any time before. Buyer receives the association documents and 419 for 5 days after receipt, OR until settlement, whichever occurs first. Buyer's notice to Seller must be in writing; upon Buyer 420 declaring this Agreement void, all deposit monies will be returned to Buyer according to the terms of Paragraph 23 of this 421 Agreement 422 (D) If the association has the right to buy the Property (right of first refusal), and the association exercises that right, Seller will reim- 423 burse Buyer for any costs incurred by Buyer for any inspections or certifications obtained according to the terms of the Agreement, 424 and any costs incurred by. Buyer for. (1) Tide search, tide insurance and/or mechanics' lien insurance, or any fee for cancellation; 425 (2) Flood insurance, fire insurance, hazard insurance, mine subsidence insurance, or any fee for cancellation; (3) Appraisal fees 426 and charges paid in advance to mortgage lender. 427 16. TITLES, SURVEYS AND COSTS (1-12) 428 (A) The Property will be conveyed with good and marketable title that is insurable by a reputable tide insurance company at the reg- 429 ular rates, free and clear of all Iiens, encumbrances, and easements, excepting however the following: existing deed restrictions; 430 historic preservation restrictions or ordinances; building restrictions; ordinances; .easements of roads; easements visible upon the 431 ground; easements of record; and privileges or rights of public service companies, if any. 432 (B) Buyer will pay for the following: (1) Tide search, tide insurance and/or mechanics' lien insurance, or any fee for cancellation; 433 (2) Flood insurance, fire insurance, hazard insurance, mine subsidence insurance, or any fee•for cancellation; (3). Appraisal fees 43.4 and charges paid in advance to mortgage lender, (4) Buyer's customary settlement costs and accruals: 435 (C) Any survey or': surveys required by the title insurance company or the abstracting .cornpany for preparing an adequate legal 436 description of the Property (or the correction thereof) will be obtained and paid for by Seller. Any survey or surveys desired by 437 Buyer or required by the mortgage lender will be obtained and paid for by Buyer. . 438 (D) If Seller is unable to give good and marketable title that is insurable by a reputable tide insurance company at the regular rates, as 439 specified in Paragraph 16(A), Buyer may terminate this Agreement by written notice to Seller, with all deposit monies returned to 440 Buyer according to the tenns of Paragraph 23 of this Agreement Upon termination, Seller will reimburse Buyer for any costs 441 incurred by Buyer for any inspections or certifications obtained according to the terms of this Agreement, and for those items spec- 442 ified in Paragraph 16(B) items (1), (2), (3) and in.Paragraph 16(C). 443 (B) Oil. gas. mineral, or other rights of this Property may have been previously conveyed or leased; and Sellers make no representa- 444 tion about the status of those rights unless indicated elsewhere in this Agreement. 445 0 011, Ga$ and Mineral Rights Addendum (PAR Form OGM) is attached. 446 (F) COAL NOTICE (Where Applicable) 447 THIS DOCUMENT MAY NOT SEM. CONVEY, TRANSFER, INCLUDE OR INSURE THE TITLE TO THE COAL AND RIGHTS OF SUPPORT UNDERNEATH 448 THE SURFACE LAND DESCRIBED OR REFERRED TO HEREIN, AND THE OWNER OR OWNERS OF SUCH COAL MAY HAVE THE COMPLETE LEGAL 449 RIGHT TO REMOVE ALL SUCH COAL AND IN THAT CONNECTION, DAMAGE MAY RESULT TO THE SURFACE OF THE LAND AND ANY HOUSE, 450 BUILDING OR OTHER simicTURE ON OR IN SUCH LAND. (This notice is set forth in the manner provided in Section 1 of the Act of 451 July 17, 1957, PL. 984.) "Buyer acknowledges that he may not be obtaining the right of protection against subsidence resulting 452 from coal mining operations, and that the property described herein may be protected from damage due to mine subsidence by a 453 private contract with the owners of the economic interests in the coal. This acknowledgement is made for the purpose of com- 454 plying with the provisions of Section 14•of the Bituminous Mine Subsidence and the Land Conservation Act of April 27, 1966." 455 Buyer agrees to sign the deedfrom Seller which deed will contain the aforesaidprovision. 456 (G) The Property is not a "recreational cabin" as defined in the Pennsylvania Construction Code Act unless otherwise stated here (sec 457 Notice Regarding Recreational Cabins): 458 (H) This property is not subject to a Priiate Transfer Fee Obligation unless otherwise stared here (see Notice Regarding Private Transfer 459 Fees): 460 0 Private Transfer Fee Addendum (PAR Form PTF) is attached. 461 17. MAINTENANCE AND RISK OF LOSS (1-I0) 462 (A) Seller will maintain the Property, grounds, fixtures and personal property specifically listed in this .Agreement in its present con- 463 dition, normal wear and tear excepted. 464 (8) If any system or appliance included in the sale of Property fails before settlement, Seiler will: 465 1. Repair or replace the failed system or appliance before settlement, OR 466 2. Provide prompt written notice to Buyer of Seller's decision to: 467 a. Credit Buyer at settlement for the fair market value of the failed system or appliance, as acceptable to the mortgage lender, 468 if any, OR • 469 Buyer Initials:124j ASR Page 8 of 11 • Seller lethals. / Revised 9/13 Produced vdth *Food" by rtplopix 15070 Fifteen We Road, Fraser. MIclipan 45025 EirmlIggaghmen 190 Melbourne - 470 b. Not repair or replace the failed system or appliance, and not credit Buyer at settlement for the fair market •value of the 471 failed system or appliance. 472 3. If Seller does not repair or replace the failed system or appliance or agree to credit Buyer for its fair market value, or if Seiler 473 falls to notify Buyer of Seller's choice, Buyer will notify Seller in writing within. 5 DAYS or before Settlement Date, 474 whichever is earlier, that Buyer will: 475 a. Accept -the Property and agree to the RELEASE in Paragraph 25 of this Agreement, OR 47.6 b. Terminate this Agreement by written notice to Seller, with all deposit monies returned to Buyer according to the terms of 477 Paragraph 23 of this Agreement, 478 If Buyer fails to respond within the time stated in Paragraph 17(B)(3) or fails to terminate this Agreement by written 479 notice to Seller within that time, Buyer will accept the Property and agree to the. RELEASE in Paragraph 25 of this 480 Agreement. 481 (C) Seller boars the risk of loss from fire or other casualties until settlement. If any property included in this sale is destroyed and not 482 replaced prior to settlement, Buyer will: 483 1. Accept th;Property in its then current condition together with the proceeds of any insurance recovery obtainable by Seller, OR 484 2. Tcrminate:this Agreement by written notice to Seller, with all deposit monies returned to Buyer according to the terms of 485 Paragraph 23 of this Agreement. 486 18. HOME WARRANTIES (1-10) 487 At or before settlement, either party may purchase a home warranty for the Property from a third -party vendor. Buyer and Seller under - 488 stand that a home warranty for the Property does not alter any disclosure requirements of Seller, will not cover or warrant any pre - 489 existing defects of ;the Property, and will •not alter, waive or extend any provisions .of this Agreement regarding inspections or certifi- 490 cations that Buyer has elected or waived as part of this Agreement. Buyer and Seller understand that a broker who recommends a hone 491 warranty may have a business relationship with the home warranty company thatprovides a financial benefit to the broker. 492 19. RECORDING (9-05) 493 ?Itis Agreement will not be recorded in the Office of the Recorder of Deeds or in any other office or place of public record. If Buyer 494 causes- or permits this Agreement to be recorded, Seller may elect to treat such act as a default of this Agreement. 495 20. ASSIGNMENT (1-10) 496 This Agreement is binding upon the parties, their heirs, personal representatives, guardians and successors;, and to the extent assigns 497 ble, on the assigns of the parties hereto. Buyer will not transfer or assign this Agreement without the written consent of Seller unless 498 otherwise statod:in this Agreement. Assignment of this Agreement may result in additional transfer taxes. 499 21. GOVERNING LAW, VENUE AND PERSONAL JURISDICTION (9.05) 500 (A) The validity and construction of this Agreement, and the rights and duties of the parties, will be governed in accordance with the 501 laws of the Commonwealth of Pennsylvania. 502 (B) The parties agree that any dispute, controversy or claim arising under or in connection with this Agreement or its performance by S03 either party submitted to a court shall be filed exclusively by and in the state or federal courts sitting in the Commonwealth of 504 Pennsylvania. • 505 22. REPRESENTATIQNS (1-10) 506 (A) All representations, •claims, advertising, promotional activities, brochures or plans of any kind made by Seller,. Brokers, their 507 licensees, employees, officers or partners are not a part of this Agreement unless expressly incorporated or stated in this 508 Agreement. This Agreement contains the whole agreement between Seller and Buyer, and there are no other terms, obligations. 509 covenants, representations, statements or conditions, oral or otherwise, of any kind whatsoever concerning this sale. This 510 Agreement will•`notbe altered, amended, changed or modified except.in writing executed by the parties. 511 (B) Unless otherwise stated in this Agreement, Buyer has inspected the Property (including fixtures. and any personal prop - 512 erty specifically listed herein) before signing this Agreement or has waived the right fo do so, and agrees to purchase the 513 Property IN I>TS PRESENT CONDITION, subject to inspection contingencies elected in this Agreement. Buyer acknowl- 514 edges that Brokers, their licensees, employees, officers or partners have not made an independent examination or 'deter - 515 mination of the structural soundness of the Property, the age or condition of the components, environmental conditions, 516 the permitted uses, nor of conditions existing in the locale where the Property is situated; nor have they made a mechan- 517 !cal inspection of any of the systems contained therein. 518 (C) Any repairs required by this Agreement will be completed in a workmanlike manner. . 519 (D) Broker(i) have.provided or may provide services"to assist unrepresented parties in complying with this Agreement. 520 23. DEFAULT, TERMINATION AND RETURN OF DEPOSITS (1-10) 521 (A) Where Bayer terminates this Agreement pursuant to any right granted by this Agreement, Buyer will be entitled to a return of 522 all deposit monies paid on account. of Purchase Price pursuant to the terms of Paragraph 23(8), and this Agreement will be 523 VOID, Termination of this Agreement may occur for other reasons giving rise to claims by Buyer and/or Seller for the deposit 524 monies. 525 (8) Regardless of the apparent entitlement to deposit monies, Pennsylvania laW docs not allow a Broker holding deposit monies to 526 determine who is entitled to the deposit monies when settlemept.does not occur. Broker can only release the deposit monies: 527 1: If this Agreement is terminated prior to settlement and there is no dispute over entitlement to the deposit monies. A written 528 agreement signed by both parties is evidence that there is no dispute regarding.dcposit monies. 529 2. If, after Broker has received deposit monies, Broker receives a written agreement thatis signed by Buyer and Seller, direct - 530 ing Broker how to distribute sone or all of the deposit monies. 531 3. According to the tenns of a final ordcr of court. 532 4. According to the terms of a. prior written agreement between Buyer and Seller that directs the Broker how to distribute the 533 deposit monies if there is a dispute between the parties that is not resolved. (See Paragraph 23(C)) 534 Buyer Initials: 911 / ASR Page 9 of 11 Revised 9/13 •Seller Inittiils / Produced with *Fenn' by Apragti 0070 Fern Man Road, Fraser. Michigan 48025 190 Melbourne - 535 (C) Buyer and Seller agree that if there is a dispute over the entitlement to deposit monies that is -unresolved 365 days after 536 the Settlement Date stated in Paragraph 4(A), or any written extensions thereof, the Broker holding the deposit monies will, with - 537 in 30 days of receipt of Buyer's written request, distribute the deposit monies to Buyer unless the Broker is in receipt of veriti- 538 able. written notice that the dispute is the subject of litigation. If Broker has received verifiable written notice of litigation prior 539 to the receipt of 'Sures request for distribution, Broker will continue to hold the deposit monies until receipt of a written distri- 540 bution agreement between Buyer and Seller or a final court order. Buyer and Seller are advised to initiate litigation for any por- 541 tion of the deposit monies .prior to any distribution made by Broker pursuant to this paragraph. Buyer and Seller agree that the 542 distribution of deposit monies based upon the passage of time does not legally determine entitlement to deposit monies, and that 543 theparties maintain their legal rights to pursue litigation even after a distribution is made. 544 (D) Buyer and Seller agree that Broker who holds .or distributes deposit monies pursuant to the terms of Paragraph 23 or Pennsylvania 545 law will not be liable. Buyer and Seller agree that if any Broker or affiliated licensee is named in litigation regarding deposit 546 monies, the attorneys' fees arid costs of the Broker(s) and licensee(s) will be paid by the party naming them in litigation. 547 (E) Scaler has the option of retaining all sums paid by Buyer, including the deposit monies, should Buyer. 548 1. Fail to make anyadditional.payments.as specified in Paragraph 2, OR 549 2. Furnish false or incomplete information to Seller, Broker(s), or any other party identified in this Agreement concerning 550 Buyer's legal or financial status, OR 551 3. Violate or:fail to fulfill and perform any other terms or conditions of this Agreenient. 552 (F) Unless otherwise checked in Paragraph 23(G), Seller may elect to retain those sums paid by Buyer, including deposit monies: 553 1. On account of purchase price, OR 554 2. As monies to be applied to Seller's damages, OR 555 3. As liquidated damages for such default. 556 (G) ® SELLER Is LIMITED TO RETAINING SUMS PAID BY BUYER; INCLUDING DEPOSIT MONIES, AS LIQUIDATED 557 DAMAGES. 558 (H) If Seller retains all sums paid by Buyer, including deposit monies, as liquidated damages pursuant' to Paragraph 23(F) or (G), 559 Buyer and.Sell4rr are released from further liability or obligation and this Agreement is VOID. 560 (I) Brokers and licensees are not responsible for unpaid deposits. 561 24. MEDIATION (1-10) 562 Buyer and Seller will submit all disputes or claims that arise from this Agreement, including disputes and claims over deposit monies, 563 to mediation. Mediation will be conducted in accordance with the Rules and Procedures of the Hone Sellers/Home Buyers Dispute 564 Resolution System, unless it is not available, in which case Buyer and Seller will mediate according to the terms of the mediation sys- 565 tem offered or endorsed by the local Association of REALTORS®. Mediation fees, contained in the mediator's fee schedule, will be 566 divided equally among the parties and will be paid before the mediation conference. This mediation process must be concluded before 567 any party to the dispute may initiate legal proceedings in any courtroom, with the exception of filing a Sammons if it is necessary to 568 stop any statute of limitations 'from expiring. Any .agreement reached through mediation and signed by the parties will be binding (see 569 Notice Regarding Mediation). Any agreement to mediate disputes or claims arising from this Agreement will survive settlement. 570 25. RELEASE (9-05) 571 Buyer releases, quit claims and forever discharges SELLER, ALL BROKERS, their LICENSEES, EMPLOYEES and any 572 OFFICER or PARTNER of any one of them and any other PERSON, FIRM or CORPORATION who may be liable by or 573 through them, fropn any and all claims, losses or demands, Including, but not limited to, personal Injury and property dam - 574 age and .all of the; consequences thereof, whether known or not, which may arise from the presence of termites or other wood - 575 boring insects, radon, lead-based paint hazards, mold, fungi or indoor air quality, environmental hazards, any defects in the 576 individual on -lot sewage disposal system or deficiencies in the on-site water service system, or any defects or conditions on the 577 Property. Should Seller be in default under the terms of this Agreement or in violation of any Seller disclosure law or regula- 578 tion, this release does not deprive Buyer of any right to pursue any remedies that may be available under law or equity. This 579 release will survive settlement 580 26. REAL ESTATE RECOVERY FUND (9-05) 581 A Real Estate Ree,vcry Fund exists to reimburse any persons who have obtained a final civil judgment against a Pennsylvania real 582 estate licensee (or a licensee's affiliates) twang .to. fraud, misrepresentation, or deceit in a real estate transaction and who have been 583 unable to collect the judgment after exhausting all legal and equitable remedies. For complete details about the Fund, call (717) 783- 584 3658 or (800) 822-2113 (within Pennsylvania) and (717) 783-4854 (outside Pennsylvania). 585 27. COMMUNICATIONS WITHBUYER.AND/OR SELLER (1-10) 586 Wherever this Agreement contains a provision that requires or allows communication/delivery to a Buyer, that provision shall be sails - 587 find by communication/delivery to the Broker for Buyer, if any, except for documents required to be delivered pursuant to 588 Paragraph 15. If there is no Broker for Buyer, those provisions may be satisfied only by communication/delivery being made direct - 589 ly to the Buyer, unless otherwise agreed to by the parties. Wherever this Agreement contains a provision that requires or allows com- 590 munication/dclivery to a Seller, that provision shall be satisfied by communication/delivery to the Broker for Seller, if any. If there is 591 no Broker for Seller, those provisions may be satisfied only by communication/delivery being made directly to the Seller, unless other - 592 wise agreed to by the parties. 593 28. SPECIAL CLAUSES (1-10) 594 (A) The following are part of this Agreement if checked: 595 0 Sale & Settlement of Other Property Contingency Addendum (PAR Form SSP) 596 0 Sale & Settlement of Other Property Contingency with Right to Continue Marketing Addendum.(PAR Form SSP -CM) 597 0 Settlement of Other Property Contingency Addendum' (PAR Form SOP) 598 0 Short Sate Addendum to Agreement of Sale (PAR Form SHS) 599 ® AppraisaliContingency Addendum (PAR Form ACA) 600 ❑ 601 0 602 0 A, 603 Buyer Initials: LAO /, ASR Page. 10 of II Selly Revised 9/13 F,pdycad srlr *Roma by si Loah 11070 Fuson Mil Rood, Fraser, Mat 411026 www.zbloals.eeni 190 Melbourne - 604 (B) Additional Terms: 605 606 607 608 609 610 611 612 613 614 611 616 617 618 619- 620- 621 .Buyer and Seller acknowledge receipt of a copy of this Agreement at the time of signing. , 622 This Agreement may he executed in one or more- counterparts, each of which shall be deemed to be an original and which coun- 623 terparts together shall Constitute one and the same Agreement of the Parties. 624 NOTICE TO PARTIES: WHEN SIGNED, THIS AGREEMENT IS A BINDING CONTRACT. Parties to this transaction are 625 advised to consult a Pennsylvania real estate attorney before signingif they desire legal advice. 626 Return of this Agreement, and any addenda and amendments, including return by electronic transmission, bearing the .signatures 627 of all parties, constitutes acceptance by the parties. 628 Buyer has received the Consumer Notice as adopted by the State Real Estate Commission at 49 Pa. Code 629 §35.336. 630 Buyer has.secelved a statement of Buyer's estimated closing costs before signing this Agreement. 631 . J,Aitl/ Buyer has read and understands the notices and explanatory information In this Agreement. 632 IAT& Buyer has received a Seller's Property Disclosure Statement before signing this Agreement, if required by law 633 (see Information Regarding the Real Estate Seller Disclosure Law). 634 /AO/ Buyer has received the Deposit Money Notice (for cooperative sales when Broker for Seller is holding deposit 635 money) before signing this Agreement. 636 Buyer has received the Lead -Based Paint Hazards Disclosure, which is attached to this Agreement Of Sale, and 637 the pamphlet Protect Your Family from.Lead in Your Home (for properties built prior to 1978). 638 BUYER Jo&L1t te-4- . Leyte Anne Fleck and 639 BUYER DATE 3//3//y DATE 640 BUYER DATE 641 Seller has received the Consumer Notice as adopted by the State Real Estate Commission at 49 Pa. Code 4 35336. 642 Seller has received a •statement of Seller's estimated closing costs before signing this Agreement. 643 Seiler has read and understands the notices and explanatory information in this Agreement. DATE 7// 645 SELLER 646 SELLER DATE DATE ASR Page 11 of 11 Revised 9/13 Pmducsd vAh *Fame a by ziLLoa6t 11070 Hahn Aft Read, Frau, MkMaao 48026 ymw.zid oCaa.com 190 Melbourne - NOTICE REGARDING CONVICTED SEX OFFENDERS (MEGAN'S LAW) The Pennsylvania General Assembly has passed legislation (often referred to as "Megan's Law," 42 Pa.C.S. g 9791 et seq.) providing for community notification of the presence of certain convicted sex offenders. Buyers are encouraged to contact the municipal police department or the Pennsylvania. State Police for information relating to the presence of sex offenders near a particular property, or to cheek the information on the Pennsylvania State Police Web site at www.pameganslaw.state.pa.us. FOREIGN INVESTMENT IN REAL.PROPERTY TAX ACT OF 1980 (FIRPTA) The disposition of a U.S. real property interest' by a foreign person (the transferor) is subject'to the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA)'income tax withholding. FIRPTA authorized the United States to tax foreign .persons on dispositions of U.S. real property interests. This includes but is not 'imitate, a sale or exchange, liquidation, redemption, gift, transfers, etc. Persons purchasing U.S. real property interests (transferee) from foreign persons, certain purchasers' agents, and settlement officers are required to withhold 10 percent of the amount realized (special rules for foreign corporations). Withholding is intended to ensfrelil S. taxation of gains realized on disposition ofsuch interests. The transferee/Buyer is the withholding agent. If you are the transferce/Buyezysu must find out if the transferor is a foreign person. If thetransferor is a foreign person and you fail to withhold, you may be held liable fortie;tax, • NOTICE REGARDING REAL ESTATE TAXES (Paragrapha2; urchase PHceand=Deposits) Heal Estate Tax•Proration: For purposes of prorating real estate taxes, die "periods coveree by,the tax,bills are as follows! Municipal Taxes: For all counties and municipalities in Pen4_sylvania, tax bills are forthe period January 1 to December 31. School Taxes: For all school districts, otherthan.theltiladelphia;..Pittsburgh:and Scranton school districts, the period covered by the tax bill is July 1 to June 30. Fo%the Phiiadelphia,Pittsburgh.and Scranton school districts, tax bills are for the period January 1 to December 31. . ii Real Estate Assessment: In Pennsylvania; taxing authorities •(school districts and municipalities) and property owners may appeal the assessed value of a property at theAtiine of sale, or at -any time thereafter. A successful appeal by a taxing authority may result in a higher assessed value for the property and an increase in property taxes. Also, periodic county -wide property reassessments may change the assessed value of the property;aitdsresu1tin a'.changesin property tax. NOTICE TOBUYERS SEEKING MORTGAGE FINANCING (Paragraph 8: Mortgage Contingency) The appraised value of the Property is used by lenders to determine the maximum amount of a mortgage loan. The appraised value is determined by an independent appraiser, subject to the mortgage lender's underwriter review, and may be higher or lower than the Purchase Price and/or market price of the property. The Loan -To -Value Ratio (LTV) is used by lenders as one tool to help assess the potential risk of a mortgage loan. LTV is determined by dividing the requested loan amount by either the Purchase Price or the appraised value of the property, whichever is lower. A.particular LTV may be necessary to qualify for certain loans, or Buyers might be required to pay additional fees if the LTV exceeds a specific level. NOTICE REGARDING TRUTH IN LENDING (Paragraph 8: Mortgage Contingency) The Mortgage Disclosure Improvement Act requires mortgage lenders to provide Buyer with a Truth in Lending ('11L) statement at the time of mortgage application (early disclosure) and anytime thereafter (re -disclosure) if the annual percentage rate (APR) changes by more than .125 percent. Settlement cannot occur within 7 days of the early disclosure or within 3 days of re -disclosure. If a re -disclosure of a TIL statement is made within 3 days of the Settlement Date in the Agreement. settlement for the Property would have to occur after the Settlement Date stated, Buyer and Seller are advised that the APR may change by more than .125 percent based on factors including, but not limited to, Seller credits, changes in loan amount or duration, and Settlement Date change. If the Buyer and Seller agree to modify the Settlement Date in response to the TIL statement waiting period, or for any other reason, it should be done by mutual written agreement of the parties. Buyer initials: ASR Notices Fage 1 of 8 Seller Initis ��� Produced With sipForrneby zpt_oahr 18070 FaieenlMi. Raid. Fnser, Miehlyen 45026 szesikalaskam 190 -Melbourne - SEWAGE NOTICES'(Paragraph 10: Seiler Representations) NOTICES PURSUANT TO THE PENNSYLVANIA SEWAGE FACILITIES ACT NOTICE 1: THERE IS NO CURRENTLY EXISTING COMMUNITY SEWAGE SYSTEM AVAILABLE FOR THE SUBJECT PROPERTY. Section 7 of the Pennsylvania Sewage Facilities Act' provides that no person shall install, construct. request bid proposals for construction, alter, repair or occupy.any building or structure for which an individual sewage system is to be installed, without first obtaining a permit. Buyer is advised by this notice that, before signing this Agreement, Buyer should contact the local agency charged with administering the Act to.determine the procedure and requirements for obtaining a permit for an individual sewage system. The local agency charged with administering the Act will be the municipality where the Property is located or that municipality working cooperatively with others. NOTICE 2: THIS PROPERTY IS SERVICED BY AN INDIVIDUAL SEWAGE SYSTEM INSTALLED UNDER THE TEN -ACRE PERMIT EXEMPTION PROVISIONS OF SECTION 7 OF THE PENNSYLVANIA SEWAGE FACILITIES ACT. (Section 7 provides that a permit may not be required before installing, constructing; awarding.a contract for construction, altering, repairing or connecting to art individual sewage system where._a ten-acreparcel_or+lot{is. subdivided from a parent tractOfter January 10, 1987.) Buyer is advised that soils and site testing weremot conducted and that, should the system malfunction, the owner of the Property or properties serviced b_.y.the system at,the tirneidinialfunction may be held liable for any contamination. pollution, public health hazard or -nuisance vhich,occurs as a psult. NOTICE 3: THIS PROPERTY IS SERVICED BY .A H6WING TANK,o(PER1GIAyNENT OR TEMPORARY) TO WHICH SEWAGE IS CONVEYED BY A WATER CARRYING SZYSTEM AND WHICH IS DESIGNED AND CONSTRUCTED TO FACILITATEtULTIMATEDISEC SAL.OF THE SEWAGE AT ANOTHER SITE. Pursuant to the Pennsylvania Sewag&Facilitics Act, -S eller mast provide a history of the annual cost of maintaining the tank.from the date of its installation nr.December 14, 1995; whichever is later. NOTICE 4: AN INDIVIDUAL SEWAGE SYSTEM HAS'`BEEN INSTALLED AT AN ISOLATION DISTANCE FROM A WELL THAT IkiESS HAN THE.DISTANCE SPECIFIED BY REGULATION. The regulations at?3 Ta:,Glide §73.18 -pertaining to minimum horizontal isolation distances provide guidance. Subsection (b) of $73:13, states .that the.minimtim horizontal isolation distance between an individual water supply or water supply system suciiccm line ands treatment tanks shall be 50 feet. Subsection (c) of §73.13 states that the horizontal isolation distance between the individual water supply or water supply system suction line and the perimeter of the absorption area shall be 100 feet. NOTICE 5: THIS LOT IS WITHIN AN AREA IN WHICH PERMIT LIMITATIONS ARE IN EFFECTAND IS SUBJECT TO THOSE LIMITATIONS. SEWAGE FACILITIES ARE NOT AVAILABLE FOR THIS LOT AND CONSTRUCTION OF A STRUCTURE TO BE SERVED BY SEWAGE FACILITIES MAY NOT BEGIN UNTIL THE MUNICIPALITY COMPLETES A MAJOR PLANNING REQUIREMENT PURSUANT TO THE PENNSYLVANIA SEWAGE FACILITIES ACT AND' REGULATIONS PROMULGATED THEREUNDER. Buyer Initials: ?a ASR Notices Page 2 of 8 Seller Initials Produced With 21pPontito by *Link 16070 Fifteen MIs Rood Fraser. Mlddpan 48020 seyiassbunn 190 Melbourne - NOTICES REGARDING LAND USE RESTRICTIONS (Paragraph 10: Seller Representations) NOTICE PURSUANT TO THE PENNSYLVANIA RIGHT -TO -FARM LAW (3. P.S. ¢ 951457) The property you are buying may be located in an area where agricultural operations take place. Pennsylvania protects agricultural resources for the production of food and agricultural products. The law limits circumstances where normal agricultural operations, may be subject to nuisance lawsuits or restrictive ordinances. FARMLAND AND FOREST LAND ASSESSMENT ACT (CLEAN AND GREEN•PROGRAM) (72. P.S. $ 5490.1 et seq.) Properties • enrolled in the Clean and Green Program receive preferential taxassessment. Notices Required by Seller: A Seller of Property enrolled in the Clean and Green Program must submit notice of the sale and any proposed Changes in the use of Seller's remaining enrolled Property to the County Assessor 30 days befoire thetranafe'r.,o,title to Buyer. Notices Required by Buyer: A Buyer of Property enrolled in the Clean and Green.0rogram mast submit notice of any proposed changes Buyer intends to make in the use of the Property being purchased to the County Assessor.ai:least'30 daj's;pnortb undertaking any changes. Loss of Preferential Tax Assessment: The sale of the Property enrolledcin•the Clean and'.Green Program may result in the loss of program enrollment and the loss of preferential tax assessment for theTProperty. and/or the land of -which it is a part and from which it is being separated. Removal from enrollment in the Clean and Gteen.Program may result in tbeobarge of roll -back taxes and Interest. A roll -back tax is the difference in the amount of taxes paid under th`cprogratn and the,taxes Matwouid have been•paid in the absence of Clean and Green enrollment. The roll -back taxes are charged foneach.year th'atttI Propert ivas enrolled in the program. limited to the past 7 years. Buyer and•Sefer have been advised of themeed to- determine;the,tax implications that will or may result from the sale of the Property to Buyer or that may result in thefutureas a resulvin any change In use of the Property or the land•from which it is being separated by contacting the CountyTax Assessmentvbffce before the execution of this Agreement of Sale. OPEN SPACE.ACT 32 P.S. f 5001 et seq. This Act enables counties to enter°into covenants with owners of land designated as farm, forest, water supply, or open space land. on an adopted municipal, county or regional plan for the purpose of preserving the land as open space. A covenant between the owner and county is binding upon any Buyer Of the Property during the period of time that the covenant is in effect (5 or 10 years). Covenants automatically renew at the end of thecovenant.period unless specific termination notice procedures are followed. Buyer acknowledges that the purchase of Property for which there is a covenant will not extinguish the covcnant.and that a change in the use of the land to any other use other than that designated in the covenant will constitute a breach. When a breach of the covenant occurs, the then -owner is required to pay roll -back taxes and interest A roll -back tax is the difference in the amount of taxes paid and the taxes that would have been paid'in the absence of the covenant. The roll -back taxes are charged for each year that the Property was subject to the covenant, limited to the past 5 years: Buyer has been advised of the need to determine the restrictions that will apply from the sale of the Property to Buyer and the tax implications that will.or may result from a change in use of the Property, or any portion of it. Buyer is further advised to determine the term of any covenant now in effect. Buyer Initials: L.nwl; ASR Notices Page 3 of 8 Seller Inillal i' Produced vial sipFomnaby rlpt.opht ieo70 Fifteen Mie Rud Fraser, MlaMyan 41026 www itoteok ata 190 Melbourne - NOTICES REGARDING PROPERTY & ENVIRONMENTAL INSPECTIONS (Paragraph 12: Inspections) Exterior. Insulation and Finish Systems (EIFS): Exterior Insulation and Finish Systems— sometimes referred to as synthetic stucco -- are multi -layered Avail systems applied to the exterior of some homes. Poor or improper installation of EIFS may result in moisture penetrating the surface of a structure where it may cause damage to the building's frame. Leakage most frequently occurs near doors and windows, gutters, the roof connection and at the lowermost edge of the exterior surface. Vulnerability to leakage depends on structure design as well as the.expertise and application skills of the contractor. Damage caused by water intrusion may be both extensive and expensive to repair but may go undetected in the absence of an adequate inspection. Buyers purchasing homes with EIFS construction may seek to engage an inspector experienced in testing for EIFS-related problems who can determine the moisture content of the building's frame. Asbestos: The heat -resistant and durable nature of asbestos makes it useful in construction. The physical properties that give asbestos its. resistance to heat and decay are linked with several adverse health effects. Asbestos can easily break into microscopic fibers that remain suspended in the' air for long periods of time. When inhaled, these fibers easily penetratebody tissue. Asbestos is known to cause Asbestosis and various forms of dancer. Inquiries or requests for more information about asbestos can be directedlto Yt1ie.U.S. Environmental Protection Agency, Ariel Rios Building, 1200 Pennsylvania Ave., N.W., Washington, D.C. 20460, and/or the Tiepartm6nt of Health, Commonwealth of Pennsylvania, Division of Environmental Health, Harrisburg, PA 17120. • ry Electromagnetic Fields: Electromagnetic Fields (EMFs) occur around all electricaItappliances:and power Iiiies. Conclusive evidence that EMFs pose health risks does not.exist at present, and Pennsylvania has no laws:regardingithisiissue. • ' Environmental Hazards: The U.S. Environmental Protection Agency. /rasa list of hazardous substances, the use and disposal of which are restricted by law. Generally, if hazardous substances ate found.on*asproperty, it is ihe;property owner's responsibility to dispose of them properly: For more information and a Iist of hazardous substances, contactithe U.S.Environmental Protection Agency, Ariel Rios Building, 1200 Pennsylvania Ave., N.W., Washington, D.C. 204:60,.(2x02) 260-20'90. Wetlands: Wetlands arc protected by the..federal and,state governments. Buyer may wish to hire an environmental engineer to investigate whether the Property is located in a wetlands area to determine if permits for plans to build, improve or develop the property would lie affected or denied because of its location is a wetlands;arca. Mold, Fungi and Indoor Air•Quality.:.Indooriiiib d -contamination and the inhalation of bioaerosols (bacteria, mold spores, pollen and viruses) have been associated with allergic responses including upper respiratory congestion, cough, mucous membrane irritation, fever, chills, muscle. ache or other transient inflammation or allergy. Claims have been asserted that exposure to mold contamination and bioaerosols has led to serious infection, immunosuppression and illnesses of neuro or systemic toxicity. Sampling of indoor air quality and other methods exist to determineithe presence and scope of indoor contamination. Because individuals may be affected differently, or not affected at all, by the presence of mold or other bioaerosols, Buyer may wish to engage the services of a qualified professional to undertake an assessment and/or sampling of the Property. Assessments and samplings for the presence of mold and bioaerosols can be performed by qualified industrial hygienists, engineers, laboratories and home inspection companies that offer these services. Information. about indoor air quality issues is available through the U.S. Environmental Protection Agency and may be obtained by contacting IAQ INFO, P.O. Box 37133, Washington, D.C. 20013-7133, 1-800-438-4318. Radon: Radon is a natural, radioactive gas that is produced in the ground by the normal decay of uranium and radium. Studies indicate that extended exposure tri high levels of radon gas can increase the risk of lung cancer. Radon can find its way into any air -space and can permeate a structure. If a house has a radon problem, it usually can be cured by increased ventilation and/or by preventing radon entry. Any person who tests, mitigates or safeguards a building for radon in Pennsylvania must be certified by the Department of Environmental Protection. Information shout radon and about certified testing or mitigation firms is available through Department of Environmental Protection, Bureau a Radiation Protection, 13th Floor, Rachel Carson State Office Building, P.O. Box 8469, Harrisburg, PA 17105-8469, (800) 23RADON or (717) 783-3594. www.epa.gov. NOTICES REGARDING RESIDENTIAL LEAD-BASED PAINT HAZARD REDUCTION ACT (Paragraph 12: Inspections) Lead -Based •Paint Hazards Disclosure Requirements (for properties built before 1978): The Residential Lead -Based Paint Hazard Reduction Act requires any Seller of property built before 1978 to provide the Buyer with an EPA -approved lead hazards information pamphlet titled Protect Your Fancily from Lead in Your Home and to disclose to the Buyer and the broker(s) the known presence of lead-based paint and/or lead-based paint hazards in or on the property being sold, along with the basis used for determining that the hazards exist, the location of the hazards, and the condition. of painted surfaces. Any Scaler of a pre -1978 structure must also provide the Buyer with any records or reports available to the Seller regarding lead-based paint and/or lead-based paint hazards in or about the property being sold, the common areas, or other residential dwellings in multi -family housing. Before a Buyer is obligated to purchase any housing constructed prior to 1978. the Act requires the Seller to give the Buyer 10 days (unless Buyer and Seller agree in writing to another time period) to conduct a risk assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards. The opportunity to conduct a risk assessment or inspection Way be waived by the.Buyer, in writing. Neither testing nor abatement is requiredof the Seller. Housing built in 1978 or later is not subject to the Act. Bayer Initials: JAW it • ASR Notices Page 4 or 8 Seder Inifial (!� t Produced web *Forme by tlpl.ogtt 15070 Tehran' MIN Road, Fraser, Michigan 45025 yreelieljAletd 190 Melbourne - LEAD WARNING STATEMENT (FOR PROPERTIES BUILT BEFORE 1978) Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that such property may present exposure to lead from lead-based paint that may place :young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems, andimpaired memory. Lead poisoning also poses a particular risk to pregnant women. The Seller of any interest in residential real property is required to provide the Buyer with,any mfotmation on lead-based paint hazards from risk.assessments or inspections in the Seller's possession and notify thc Buyer of any known lead-based paint hazards. A risk assessment or inspection for possible lead.based paint hazards is recommended prior to purchase. NOTICE REGARDING THE HOME INSPECTION LAW (68 Pa. C.S.A. *7501, et seq.) (Paragraph 12: Inspections) Applicability: The Home Inspection Law applies to "residential real estate transfers," defined as a sale, exchange, installment sales contract, lease with an option to buy, grant or other transfer of an interest in real property where NOT LESS THAN ONE AND NOT MORE THAN FOUR RESIDENTIAL DWELLING UNITS are involved. (See. Notice Regarding The Real Estate. Seller Disclosure Law (exceptions 1-8) for a list of exceptions to this general rule.) The following definitions are taken from the text of the Home Inspection Law Home Inspection: A non-invasive. visual examination of some combinaion ofthe mechanical, electrical or plumbing systems or the structural and essential components of a residential dwelling designed to identify matenabdefecta in those Systems and components, and performed for a fee in connection with or preparation for a proposed. or:possible resldentiaiirealestate transfer. The term also includes any consultation regarding the property that is represented tobc a honte;inspection or that.is.described by any confusingly similar term. The term does not include an gsminaaon of a single system or component of_aoresid'ential dwelling such as, for example, its electrical or plumbing system or its roof. The term also does not include an'examination that is limited' to inspection for, or of, one or more of the following: wood -destroying insects, underground tanks•and •wells, septic;sys`tems, swimming pools and spas, alarm systems, air and water quality, tennis courts and playground equipment, pollutants, toxic,chemicals and.environmental hazards. The scope of a home inspection, the services to be performed and the systems and conditions to be inspected or excluded from inspection may be defined by a contract between the home inspector and the client. Home Inspection Report: i •wnttenaeport cm the results of a home inspection. A home inspection report shall"include: (1) .A description of the'scdpe of the inspection, including without limitation an identification of the structural elements, systems and subsystems covered by the report. (2) A description of any material defects noted during the inspection, along with any recommendation that certain experts be retained to determine the extent of the defects and any corrective action that should be taken. A "material defect" that poses an unreasonable risk to people on the property shall be conspicuously identified as such, A home inspector shall not express either orally or in writing an estimate of the cost to repair any defect found during a home inspection, except that such an estimate may be included in a home inspection report if (1) the report identifies the source of the estimate: (2) the estimate is stated as a range of costs; and (3) the report states that the parties should consider obtaining an estimate from a contractor who performs the type of repair involved. Seller shall have theright, upon request, to receive without charge a copy of any inspection report from the party for whom it was prepared. Home Inspector: An individual who performs a home inspection. National home inspectors assodatlon: Any national association of home inspectors that: (1) Is operated on a not-for-profit basis and is not operated as a franchise. (2) Has members ih more'than ten states. (3) Requires that a person may not become a frill member unless the person has performed or participated .in. more than 100 home inspections and has passed a recognized or accredited examination testing knowledge of the proper procedures for conducting a home inspection. (4) Requires that its members comply with a code of conduct and attend continuing professional education classes as an ongoing condition of membership. A Buyer shall be entitled to rely in good faith, without independent investigation, on a written representation by a home inspector that thc home inspector is a full member in good standing of a national home inspection association. Materlal defect: A problem with a residential real property or any portion of it that would have a significant adverse impact on the value of the property or that in$olves an unreasonable risk to people on the property. The fact that a structural element. system or subsystem is near, at or beyond the end of the normal useful life of such a structural element, system or subsystem is not by itself a material defect. Buyer Initials. tt ASR Notices Page 5 of 5 Seller Inithd.r Produced with *Forme by sipt.ogbr 18070 Pillion Mb Rood, Fraser, Neddiran 45026 resitialdasam 190 Melbourne - NOTICES REGARDING CONDOMINIUMS AND'PLANNED COMMUNITIES (Paragraph 15: Condominium/Planned Community.(]iomeowner Association) Resale Notice) Definition of a Condominium The Uniform Condominium Act defines a "condominium" as real estate, portions of which are designated for separate ownership and the remainder of which is designated for common ownership solely by the owners :of those portions. Real estate isnot a condominium unless the undivided interests in the common elements are vested in the unit owners. Definition .of a Planned Community The Uniform Planned Community Act defines a `planned community" as real estate with respect to which a person, by virtue of ownership of an interest in any portion of the real estate, h or may become obligated by covenant, easement or agreement imposed on the owner's interest to pay any.amount for real property taxes, insurance, maintenance, repair, improvement, management, administration .or regulation of any part of the real estate other than the portion or interest owned solely by the person. The term excludes a cooperative and a condominium, but a cooperative or condominium may be part of a planned community. For the purposes of this definition, "ownership" includes holding a leasehold interest of more than 20'years, including renewal options, in real estate, The term includes non-residential campground communities. Exemptions from the Uniforat.Plenned Community Act and the Uniform Condominium Act: When a .Certificate of Resale Is Not Required The owner of a property located within a planned community is not required to furnish the -Buyer with a certificate of resale under the following circumstances: (1) The Planned Community contains no more than 12 units; provided there is. no possibilityoftadding real:estate°or subdividing units to increase the size of thePlanned Community. (2) The Planned Comrrtunity/Condominium is one in which all of the units .are iestricted-exclusively to non-residential use, unless the declaration provides that the resale provisions are nevertheless to be followed. (3) The Planned Community/Condominium or units are located' outside; the'Commonwealth ofPennsylvapia. (4) The transfer of the unit is a gratuitous transfer. (5) The transfer of the unit is.rcquircd by court order. •- (6) The transfer.of the unit isby the;govemmentrora.govemmentad agency. (7) The transfer of the unit Is the result of foreclosure•or in lietvofforeclosure. Notices? Regarding Public Offering Statements and Rightio Rescission If Seller is a Declarant of the condominium -or planned community, Seller is required to furnish Buyer with a copy of•.the Public Offering Statement and its amendments. For condominiuins;tthe-delivery of the.Public Offering Statement must be made no. later than the date the Buyer executes this Agreement, Buyer may cancel this Agreement within 15 days afteroreceiving the Public Offering Statement and any amendments that materially -and adversely affect Buyer. For planned communities, the.declarant••must provide the Buyer with.a copy of the Publie.Offering.Statement and its amendments. no later than the date the Buyer executes thisAgreement.Buyer May cancel this Agreement within 7 days after receiving the Public Offering Statement and any amendments that materially and adversely affect Buy% NOTICES REGARDING RECREATIONAL CABINS (Paragraph 16: Title, Surveys & Costs) The following definitions and requirements are taken from the Pennsylvania Construction Code Act (35 P.S. ¢7210.101 et. seq.) A Recreational Cabin.is a structure which is: (1) Utilized principally for recreational activity; (2) Not utilized as a domicile or residence for any individual for any time period; (3) Not utilized for commercial.purposes; (4) Not greater than.twb stories In height, excluding basement; (5) .Not utilized by the owner or any other person as a place of employment (6) Not a mailing address for bills and correspondence; and (7) Not listed as an individual's place of residence on a tax return, driver's license, car registration or voter registration. A recreational cabin may be exempt froth the provisions of the Pennsylvania Construction Code Act if: (1) The cabin is .equipped with at least one smoke detector; one fire extinguisher and one carbon monoxide detector in both the. kitchen and sleeping quarters;.and u (2) The owner.of the•cabin files with the municipality either: (a) An affidavit on a form prescribed by the Pennsylvania Department of Labor and Industry attesting to the fact that the cabin -meets the. definition of a'"recreational cabin" in Section 103 ofthe Act; or (b) A valid proof of insurance for the recreational cabin, written and issued by an insurer authorized to do business in this Commonwealth, stating that tfie:structure meets the definition of a "recreational cabin" as defined in Section 103 of the Act. If a recreational cabin is subject to exclusion front the Pennsylvania Construction Code Act, upon transfer of ownership of. the- recreational cabin,. written notice must be provided in the sales agreement and the deed that the recreational cabin: (1) Is exempt from this Act; (2) May not be in conformance with the uniform construction code; and (3) Is not subject to municipal regulation. Failure to comply with this notice requirement shall render the sale void at the option of the purchaser. Buyer Initials: k11.0,. ASR Notices Page 6 of 8 Seller Iaitiats22 / Produced with *Fermi) by ziptogis 18070 Fifteen MM Road, Fraser, Whim 48028 ]yw*.zlfLaalz win 1901Aelbournc'- NOTICES REGARDING PRIVATE TRANSFER FEES (Paragraph 16: Title, Surveys &Costs) In Pennsylvania, PrivateTransferFees are defined and regulated in the Private Transfer.Fee Obligation Act (Act 1 of 2011; 68 Pa.C.S. §§ 810I, et. seq.), which defines a Private Transfer Fee as. "a fee that is payable•upon the transferof an interest in real property, or payable for thc right to make or accept the transfer, if the Obligation to pay the fee or charge runs with title to. the property or otherwise binds subsequent owners of property, regardless of whether the fee or charge is a fixed amount or is determined as a percentage of the value of the property, the purchase. price or other consideration given for the transfer." A Private Transfer Fee must be. properly recorded to be binding. and sellers must disclose the existence of the foes to prospective buyers. Where a Private Transfer Fee is not properly recorded or disclosed, the Act gives certain rights and protections to buyers. NOTICES REGARDING MEDIATION (Paragraph 24: Mediation) HOME SELLERS/HOME BUYERS DISPUTE RESOLUTION SYSTEM RULES AND PROCEDURES 1. Agreement of Parties: The Rules and Procedures of the Dispute Resolution System (DRS) apply when thc parties have agreed in writing to mediate under DRS. The written agreement can be achieved by a standard clause in an agreement of sale, an addendum to an agreement of sale, or through a separate written agreement. 2. Initiation of Mediation:: If a dispute exists, any party may start the mediation process by submitting a completed Request to Initiate Mediation DRS Transmittal Form (Transmittal Form) to the local Association of REALTORS® (hereafter "Administrator"). The Transmittal.Form should be available through the Administrator's office. The .initiating parry should try to include the following information when sending the completed Transmittal Form to the Administrator a. A copy of the written agreement to mediate if there is one, OR a request by the initiating party-to 'have the Administrator contact the other parties to the dispute to invite them to join the mediation process. b. The names, addresses and telephone numbers of the parties involved in the disputcjnciuding,thername-of°every insurance company known to have received notice.of the dispute or claim and the corresponding file or claim number. • • c. A brief statement of the facts of the dispute and the damages or relief sought. 3. Selection of Mediator: Within five days of receiving the completed Ttansmitta1 Foran, the Administrator will send each party to the dispute a copy of the Transmittal Form and a list of qualified mediators and their fee schedules Each party thenihas't`en;days to review the list of mediators, cross off the name of any mediator to whom the party objects, and return the list to the Administrator. The Administrator will appoint the first available mediator who is acceptable to all parties involved, A mediator who has any financial or personal interest in the `di.Epute or theresults or the mediation cannot serve as mediator to that dispute, unless all parties are informed and give their written comedic • 4. Mediation Fees: Mediation fees will be dividedequally among thelpaities acid will be paid before the mediation conference. The parties will follow the payment terms contained in the mediatores fee schedule. 5. Time and Place.of Mediatlon..Conference: Within ten days,of being appointed to the dispute, the mediator will contact the parties and set the date, time and place of the mediation conference. Themedt'htorinust;give at least twenty days' advance notice to all patties. The mediation conference should not be more than sixty days from tliemediatcuss appointment to the dispute. 6. Conduct of Mediation Conference: The•paitids• attending the mediation conference will be expected to: a. Have the authority to enter4nto and sign a binding settlement to the dispute. b. Produce all information required for the mediator to understand the issues of the dispute. The h formation may include relevant written materials, descriptions of witnesses and the content of their testimony. The mediator can require the parties to deliver written materials and information before the date of the mediation conference. The mediator presiding over the conference: a. Will impartially conduct an orderly settlement negotiation. b. Will help the parties define the matters in dispute and reach a mutually agreeable solution. c. Will have no authority to render an opinion, to bind the partiesto his or her decision, or to force the parties to reach a settlement. Formal rules of evidence will not apply to the mediation conference. 7. 13epresentatlon by Counsel: Any party who intends to be accompanied to the mediation conference by legal,coansel. will.nodfy the mediator and the other parties of the intent'at least ten days before the .conference. 8. Confidentiality: No aspect Of the mediation•can be relied upon or introduced as evidence in any arbitration, judicial or other proceeding. This includes, but is not Iimited to, any opinions or suggestions made by any party regarding a possible settlement; any admissions made during the coarse of the mediation; any proposals or opinions expressed by the mediator, and any responses given by any party to opinions, suggestions, or proposals. No privilege will be affected by disclosures made in the course of the mediation. Transcripts•or recordings of the mediation will not be allowed without the prior, written consent.of all parties and the mediator. Records, reports, and other documents received or prepared by the mediator or Administrator cannot be compelled by an arbitration, judicial, or other proceeding, with the exception of an agreement that was reached in the course of mediation and signed by all the parties. Neither the mediator nor the Administrator can be compelled to testify in any proceeding regarding information given or representations made either in the course of the mediation or inany confidential communication. 9. Mediated Settlement: When a dispute is resolved through mediation, the mediator will put the complete agreement in writing and all parties will sign the written agreement within ten days of the conclusion of the mediation conference. Every reasonable effort will be made to sign the written agreement at the end of the conference. 10. Judicial Proceedings anis Immunity: NEITHER THE ADMINISTRATOR, THE MEDL.TOR THE NATIONAL ASSOCIATION OF REALTORS®. THE PENNSYLVANIA ASSOCLV ON of REALTORS®, NOR ANY OF ITS MEMBER BOARDS. WILL BE DEEMED NECESSARY OR INDISPENSABLE PARTIES IN ANY JUDICIAL PROCEEDINGS RELATING TO MEDIATION UNDER THESE RULES AND PROCEDURES, NOR WILL ANY OF THEM SERVING UNDER THESE PROCEDURES BE .LIABLE TO ANY PARTY FOR ANY ACT, ERROR OR OMISSION R4 CONNECTION WISH ANY SERVICE OR THE OPERATION OF'THE HOME SEu.Ens/HOME BUYERS DISPUTE RESOLUTION SYSTEM. Buyerinitialr. /'• ASR Notices Page 7 of 8 Seller Initials` Produced with 4WD''' by m LagI* 1e070 FBtwe Mk Road, Frazer, Mkhigan 44026 www.*iol.oak.com 190 Melbourne - NOTICES REGARDING THE REAL ESTATE.SELLER DISCLOSURE LAW (Page 11: Signature Page) The Real Estate Seller Disclosure Law requires that before an agreement of sale is signed, the Seller in a residential real ettate transfer must make certain disclosures regarding the property to potential Buyers in a form defined by the law, A residential real estate transfer is defined as a sale, exchange, installment sales contract, lease with an option to buy, grant or other transfer of an interest in real property where NOT LESS THAN ONE AND NOT MORE THAN FOUR RESIDENTIAL DWELLING UNITS are involved, The Law defines a number of exceptions where the disclosures do not have to be made: 1. Transfers that are the result of a court order. 2. Transfers to a mortgage lender that result from a Buyer's default and subsequent foreclosure sales that result from default. 3. Transfers from a c'o-owner to one or more other co-owners. 4. Transfers made toa spouse or direct descendant. 5. Transfers between spouses that result from divorce, legal separation or property settlement. 6. Transfers by a corporation, partnership or other association to its shareholders, partners or other equity owners as part of a plan of liquidation. 7. Transfer of a property to be demolished or convened to non-residential use. 8. Transfer of unimproved real property. 9. Transfers by a fiduciary during the administration of a decedent estate, guardianship, conservatorship,.oiliaat. 10. Transfers of new construction that has never been occupied when: • a. The Buyer has received a one-year warranty covering the construction; b. The building has been inspected for compliance with the applicable .building t.;ode.or„i ;none, -;a nationally recognized model building code: and c. A certificate of occupancy or a certificate of code compliance has,heen issued for thetdwelling. In addition to these exceptions, disclosures for condominiums and cooperatives ate -limited •to tie Seller's particular unit(s). Disclosures regarding common areas or -facilities are notrequired, as those elements are.almadj adtaressed in•-the'laws'that,govem the resale,of condominium and cooperative interests. Boyer Initials•. >r: J ASR Notices Page 8 of 8 Seller Tetgols�`" Produced with Aprodne by olpLoya 18070 Man Mie Road FrasorAdthigao 18028 ViTOLRIA.20.-ARM 190 Melbourne - 604 605 606 607 608 609 610 611 612 613 614 615 616 617 618 619 620 621 Buyer and Seller acknowledge receipt of a copy of this Agreement at the time of signing. 622 This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original and which coun- 623 terparts together shall constitute one and the same Agreement of the Parties. 624 NOTICE TO PARTIES: WHEN SIGNED, THIS AGREEMENT IS A BINDING CONTRACT. Parties to this transaction are 625 advised to consult a Pennsylvania real estate attorney before signing if they desire legal advice. B) Additional Terms: 626 Return of this Agreement, and any addenda and amendments, including return by electronic transmission, bearing the signatures 627 of all parties, constitutes acceptance by the parties. 628 /.,414 Buyer has received the Consumer Notice as adopted by the State Real Estate Commission at 49 Pa. Code 629 §35.336. 630 / Buyer has received a statement of Buyer's estimated closing costs before signing this Agreement. 631/ Buyer has read and understands the notices and explanatory information in this Agreement. 632 4,4'4 Buyer has received a Seller's Property Disclosure Statement before signing this Agreement, if required by law 633 (see Information Regarding the Real Estate Seller Disclosure Law). 634 ,4/41.&1/ Buyer has received the Deposit Money Notice (for cooperative sales when Broker for Seller Is holding deposit 635 money) before signing this Agreement. 636 Buyer has received the Lead -Based Paint Hazards Disclosure, which is attached to this Agreement of Sale, and 637 the pamphlet Protect Your Family from Lead in Your Home (for properties built prior to 1978). 638 BUYER u .o. 7dJ9 iC Qus� Laura Anne Weakland 639 BUYER 640 BUYER DATE Jam/ I /y DATE DATE 641 Seller has received the Consumer Notice as adopted by the State Real Estate Commission at 49 Pa. Code § 35.336. 642 Seller has received a statement of Seller's estimated closing costs before signing this Agreement. 643 Seller has read and understands the notices and explanatory information in this Agreement. 644 SELLER tlynn Be 645 SELLER 646 SELLER DATE DATE DATE ASR Page 11 of 11 Revised 9/13 Produced with zpFann® by xlplcgix 18070 Moen Mlle Road, Fraser, M@Moen 48026 www.tIDLoqix.com 190 Melbourne - USBHM Established Condominium Project Underwriting Questionnaire Condo Legal Name: Street or Physical Address: City: State: Zip: Customer Name: Loan Number: Date: Lender Representative: Lender Email: Lender Phone: Dear Association Representative: In order to offer a mortgage to your new owner/member, and also for future purchases in your project, we ask for your assistance. Please help us by completing and returning this form at your earliest convenience. Any officer of your association/management firm may respond. It is imperative that ALL line items on the below questionnaire are completed in full. Your cooperation will assure a smooth mortgage experience for our mutual client. If you are unable to complete all line items below or have further questions, please call us at 952-876-5318 or email us at proj ectapprovaldept{& usb ank. com. Thank you, USBHM Project Underwriter Part I: Project Information - Completed by authorized HOA representative # of Units # of Buildings # of Stories # of Units Completed # of Units Sold from Developer # of Units Conveyed (Closed) # of Primary Residence # of 2nd Homes # of Units Rented # of Off -Site Addresses Total Project USBHM will not accept "Does Not Track," "Unknown," "N/A," or blanks for answers and project will be pended for required information. Please provide actual numbers and not percentages. 1. Are all units and common elements complete and not subject to any additional phasing and additions? ■ Yes ■ No 2. Have at least 90% of the total units been conveyed to the unit purchasers other than the developer? ■Yes • No 3. Has the developer/sponsor turned If yeswhat date was it turned project control over to unit owners? over? / / ■ Yes ■ No NOTE: IF ANY ANSWER TO 1-3 IS NO, THE PROJECT IS CLASSIFIED AS A NEW PROJECT AND THE NEW PROJECT QUESTIONNAIRE NEEDS TO BE COMPLETED. 4. Is there commercial space located within the Total Square Footage of Commercial Units Total Square Footage of Project project? If yes, please give the following information: • Yes ■ No 5. Does the project contain any live -work space? (A single unit that consists of both commercial/office space along with residential space.) • Yes II No 6. When project is turned over to unit owners, units? . If yes, please explain what ownership is does the developer retain any retained: ownership in the project except for unsold •Yes ■ No 7• Are all common areas/amenities/recreational facilities complete and owned jointly by unit owners (including the master association)? II Yes ■ No 8. Is any onetperson under contract to purchase or own more sponsor, during the initial construction time?) If yes,the maximum number of units owned by one person: than one unit in project (other than the original developer or •Yes ■ No USBHM Established Page 1 of 3 Revision 08.15.13 USBHM Established Condominium Project Underwriting Questionnaire Condo Legal Name: Street or Physical Address: City: State: Zip: ■Yes ■ No 9. Are there any pending or levied special assessments If yes: The total amount of the assessment: by the HOA? Current amount outstanding: Terms: Describe the nature of the assessment: No 10. Does at least 10% of the budget provide for funding of replacement reserves, capital expenditures, maintenance, and insurance deductibles? Fiscal Year Start Fiscal Year End deferred •Yes • Total income budget for this year: $ Total reserves budgeted for the year: $ Total reserves balance: $ as of (Date) # 11. Number ofunits over 30 days delinquent in payment of HOA Dues or assessments (including REO owned units.) If none, please indicate "0" No 12. Do the project documents include any restrictions (i.e. Age Restrictions, Low moderate income If yes, please explain: on sale which would limit the free transferability of title? restrictions, Rent Stabilized) •Yes ■ No 13. Are the units owned in leasehold or are the recreational If yes, please explain: amenities leased? •Yes ■ No 14. Is the H0,3 or developer involved in any litigation bankruptcy, deed -in -lieu of foreclosure or foreclosure If Yes: and/or arbitration including the project (excluding delinquent HOA dues)? ■ No being placed in receivership, The HOA is the • Plaintiff 1 Defendant ■Yes ■ Damages Amount: $ If Defendant, will insurance cover? •Yes Expected date of Resolution: / / Describe the nature of the suit and provide documentation: No 15. Does the association have any knowledge of any individual units? If yes, please explain: adverse environmental factors affecting the project as a whole or as ■Yes ■ No 16. Does the project consist of Short -Term Rentals, Manufactured Homes, Multi Dwelling Units or Houseboat? Maid Service? If yes, please explain: Revenue Sharing, Hotel, Advertised Rentals, Timeshares, Does the project have an On Site Rental Office or Daily •Yes IN No 17. Does the project allow two or more living units on one deed? ■Yes ■ No 18. Is there more than one association for the project, If yes, please provide the Master Association such as a master or umbrella association? Name: •Yes NI USBHM Established Page 2 of 3 Revision 08.15.13 USBHM Established Condominium Project Underwriting Questionnaire Condo Legal Name: Street or Physical Address: City: State: Zip: 19. Does the HOA maintain separate accounts for the operating expense and reserve accounts? II Yes ■ No 20. Are the monthly account statements being sent directly to the HOA? • Yes 1 No 21. Does the property management company (if applicable) have the authority to draw checks against or transfer from the reserve account? ■ Yes ■ No 22. Are two or more members of the Board of Directors required to sign checks drafted against the reserve account? •Yes • No Part II: Preparer Information The project is managed Name: Company Name Address: Phone Number: The above statements Association. Developer/Sponsor by: ■ Professional Agent ■ Unit Owners ■ (if applicable): , Title: ( ) - Email Address: are true and accurate to the best of my knowledge. This information I presented is on behalf of the Homeowners Signature of Preparer: Date: This form along with the required Submission Sheet and the following list of documents are to be sent to the Project Approval Department for 6) Articles of Incorporation 7) Evidence of Insurance documentation needed to verify that project meets the required all projects regardless of review type: 1) USBHM Project Approval Request Submission Sheet 2) Current Association Budget and Balance Sheet 3) Previous Year's Income and Expense Statement 4) Executed and Recorded Declarations and all Amendments 5) Bylaws (Executed or Recorded as required by State requirements) Please Note: The Project Approval Department may request any addition FHLMC warranties. USBHM Established Page 3 of 3 Revision 08.15.13 EXHIBIT "E" T - Et Sterling Property Management, Inc. RESALE CERTIFICATE Melbourne Place Condominium Association This certificate is provided pursuant to the provisions of Section 3407 of the Pennsylvania Uniform Condominium Act. The Melbourne Place Condominium Association, hereinafter "Association", represents the following with respect to, 190 Melbourne Lane, Mechanicsburg, PA 17055 hereinafter "Unit". 1. The sale of the Unit is not subject to any right of first refusal or any other restraint on the free alienability of the Unit known to the Association unless otherwise stated here: NONE 2. The regular monthly common expense assessment of the Unit, is payable in monthly installments of $102.00(through December, 2014) due on or before the First of each Month. This account has a credit of $46.21 and will go towards the May 2014 dues. The account has outstanding balance of $75.00 consisting of the Resale Certificate $75.00 (to be paid by seller). Please call for the outstanding balance one day (1) prior to closing. 3. As of the date of this certificate, there are no unpaid common expenses and/or special assessment currently due. (please see item 2 hereinabove). 4. As of the date of this certificate, there are no surplus fund credits applicable to the Unit except as otherwise stated here: n/a . 5. Please note that all fees (due at time of settlement) must be paid in full. Any outstanding fees not paid by the seller will be the responsibility of the new homeowner and sent to collections immediately. 6. No other fees are presently due to the Association by the Unit owner except as otherwise stated here: The Unit owner is personally responsible for All County, Township, and School real estate taxes on the unit as well as all utilities furnished to the individual unit. SEE #2 ABOVE. 7. As of the date of this certificate no capital expenditures are proposed by the Association for the current or the two next succeeding fiscal years unless otherwise stated here 8. The Association has approximately $173,408.36 reserved for capital expenses. Those reserves have not been specifically designed by the Association for specified projects unless otherwise stated here 9. The most recent regularly prepared balance and income and expense statement, if any, of the Association is attached hereto and incorporated herein by reference. 10. The current operating budget of the Association is attached hereto and incorporated herein by reference. 11. At present, there exist no judgements against the Association, nor are there any pending law suits known to the Association, to which it is a party unless otherwise stated here: n/a . 12. Pursuant to the requirements of the Uniform Planned Community Act, the Association does maintain Liability insurance of the common facilities; such insurance is maintained with Community Association Underwriters. 13. The Executive Board of the Association has no knowledge of any alterations or improvements to the above - referenced Unit th the limited common facilities assigned thereto, or any other portion of the Association, has no knowledge of any violations of any applicable governmental requirements and has no knowledge of any of the following: a. Hazardous conditions, including contamination affecting the Association site by hazardous substances, hazardous wastes or the like or the existence of underground storage tanks for petroleum products or other hazardous substances. b. Any investigation conducted to determine the presence of hazardous conditions on or affecting the Association ite. c. Any finding or action recommended to be taken in the report of any such investigation or by any governmental body, agency or authority in order to correct any hazardous conditions, and any action taken pursuant to those recommendations, unless other set forth here: N/A 14. No leasehold estates exist which effect the Association unless otherwise set forth here: None. 15. The Declaration of the Association does not provide for Cumulative or Class Voting. 16. No agreement to terminate the Association has been submitted to the unit owners for approval unless otherwise stated here: None 17. The Association is not a Master Association or part of a Master Association. The Declaration of the Association does not allow the Association to become a Master Association or to become part of a Master Association. 18. None of the units in the Association may be owned in time share estates unless otherwise stated here: None 19. Unit is in violation of below listed Association Covenant/Bylaw restriction: 20. The Declaration does not retain the special declarant right to cause a merger or consolidation of the Association unless otherwise stated here: N/A 21. An Amendment to the Declaration of Condominium has been filed in the Recorder of Deeds Office of Cumberland County, Pennsylvania. Said Amendment prohibits any owner of using the unit as a rental property. PLEASE HAVE THE SETTLEMENT DEPT. CALL STERLING PROPERTY MANAGEMENT, INC (717) 258-5800 Fax # (717) 258-5805, AT LEAST FIVE DAYS PRIOR TO SETTLEMENT AND GIVE THE NEW OWNER(S) NAME(S) — AN INFORMATION SHEET IS ATTACHED HERETO. WE UNDERSTAND THAT THE DECLARATION, COVENANTS AND BY-LAWS HAVE ALREADY BEEN GIVEN TO THE PROSPECTIVE BUYER FOR THIS PROPERTY. THIS CERTIFICATE HAS BEEN COMPLETED TO THE BEST OF OUR KNOWLEDGE & UPON ADVICE OF LEGAL COUNSEL FOR Melbourne Place Condominium Association. Date: 4-7-2014 By: J. Michel Adler J. Michael Adler Sterling Property Management, Inc Agent for Melbourne Place Condominium Assoc. KAITLYNN F. BENSON IN THE COURT OF COMMON PLEAS OF Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA V. CIVIL ACTION—LAW MELBOURNE PLACE CONDOMINIUM ASSOC., MICHELLE C. CRYTZER, MICHAEL D. PATCH, DENISE H. KOSER, LOU ANN GUILLES, and CINDY CONNORS, Defendants NO. 14-3403 CIVIL TERM IN RE: COMPLAINT FOR SPECIAL INJUNCTIVE RELIEF PURSUANT TO PA. R.C.P. 1531 ORDER OF COURT AND NOW, this 25`h day of June, 2014, upon consideration of Plaintiff's Complaint for Special Injunctive Relief Pursuant to Pa. R.C.P. 1531, a Rule is hereby issued upon Defendants to show cause why the relief requested should not be granted. RULE RETURNABLE one week prior to the scheduled hearing. A HEARING is scheduled in this matter for Tuesday, August 26, 2014, at 1:30 p.m., in Courtroom No. 5, Cumberland County Courthouse, Carlisle, Pennsylvania.. BY THE COURT, Chri lee L. Peck, J. /Mark C. Duffie, Esq. 301 Market Street P.O. Box 109 `�' ' f = Lemoyne, PA 17043-0109 c Attorney for Plaintiffs rF = ✓elbourne Place Condominium Association 1300 Market Street P.O. Box 622 Lemoyne, PA 17043 Michelle C. Crytzer 105 Melbourne Lane Mechanicsburg, PA 17055 Michael D. Patch 126 Melbourne Lane Mechanicsburg, PA 17055 , , enise H. Koser 111 Melbourne Lane Mechanicsburg, PA 17055 /Lou Ann Guilles 128 Melbourne Lane Mechanicsburg, PA 17055 ,,.,,,Cindy Connors 195 Melbourne Lane Mechanicsburg, PA 17055 :rc i cS Pz�.+lj'- T R. JAMES REYNOLDS, JR., ESQUIRE Pa. Supreme Court I.D. No. 10252 MARGOLIS EDELSTEIN 3510 Trindle Road Camp Hill, PA 17011 Telephone: (717) 760-7505 Facsimile: (717) 975-8124 E -Mail: jreynolds@margolisedelstein.com OF 7-1-iE PRO THONOTAi ZO I t; JUL -2 pm cUMBERL PEN tl`c :� c#for�j�efendants !`e r� a Melbourne ace Condominium Association, Michael D. Patch, Denise H. Koser, Lou Ann Guilles, and Cindy Connors KAITLYNN F. BENSON, Plaintiff, v. : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA : NO. 14-3403- CIVIL MELBOURNE PLACE CONDOMINIUM : ASSOCIATION, MICHELLE C. CRYTZER: MICHAEL D. PATCH, DENISE H. KOSER, LOU ANN GUILLES, AND CINDY CONNORS, Defendants ACCEPTANCE OF SERVICE AND ENTRY OF APPEARANCE TO THE PROTHONOTARY: I hereby accept service of the Complaint on behalf of Defendants Melbourne Place Condominium Association, Michael D. Patch, Denise H. Koser, Lou Ann Guilles and Cindy Connors, and certify that I am authorised by them to do so. Please enter illy appearance for Defendants Melbourne Place Condominium Association, Michael D. Patch, Denise H. Koser, Lou Ann Guilles and Cindy Connors in the above -captioned matter. Date: July 1, 2014 R. Jo OF' eynolds, Jr. PA Attorney ID No. 10252 Margolis Edelstein 3510 Trindle Road Camp Hill, PA 17011 717-760-7505 CERTIFICATE OF SERVICE I, the undersigned, do hereby certify that I have this j day of 2014, served a true and correct copy of the foregoing. Acceptance of Service anc3!ntry of Appearance upon the person(s) and in the manner indicated below: Service by First Class Mail, Postage Prepaid, Addressed as Follows: Mark C. Duffie, Esquire Johnson, Duffie,-Stewart•& Weidner 301 Market Street P.O. Box 109 Lemoyne, PA 17043-0109 (Attorney for Plaintiff) MARGOLIS EDELSTEIN By Od Carol Moose, Legal Assistant M:\ndir\1 QBE\20250.4-00006 Benson v. Melbourne\Pleadings\Acceptance and EOA.6-23-14.wpd R. JAMES REYNOLDS, JR., ESQUIRE Pa. Supreme Court'I.D. No. 10252 MARGOLIS EDELSTEIN 3510 Trindle Road Camp Hill, PA 17011 Telephone: (717) 760-7505 Facsimile: (717) 975-8124 E -Mail: jreynolds@margolisedelstein.com f`r OF THE ;�d � � TNUNO rte; 2114 JUL -g p,. ��Utf6 i 42 PENNSYLVANIA RL ° AUIi1trney PENNS Yfor Defendants KAITLYNN F. BENSON, Plaintiff, : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA : NO. 14-3403- CIVIL MELBOURNE PLACE CONDOMINIUM : ASSOCIATION, MICHELLE C. CRYTZER: MICHAEL D. PATCH, DENISE H. KOSER, LOU. ANN GUILLES, AND CINDY CONNORS, - Defendants ACCEPTANCE OF SERVICE AND ENTRY OF APPEARANCE TO THE PROTHONOTARY: I hereby accept service of the Complaint on behalf of Defendant Michelle C. Crytzer, and certify that I am authorized by her to do so. Please enter my appearance for Defendant Michelle C. Crytzer in the above -captioned matter. Date: July 7, 2014 1 R. J., es Reyno ds, r. PA Attorney ID No. 10252 Margolis Edelstein 3510 Trindle Road Camp Hill, PA 17011 717-760-7505 Attorney for Defendants CERTIFICATE OF SERVICE I, the undersigned, do hereby certify. that I have this `i`) day of 2014, served a true and correct copy of the foregoing Acceptance of Servi Appearance upon the person(s) and in the manner indicated below: Service by First Class Mail, Postage Prepaid, Addressed as Follows: Mark C. Duffle, Esquire Johnson, Duffle, Stewart & Weidner 301 Market Street P.O. Box 109 Lemoyne, PA 17043-0109 (Attorney for Plaintiff) By: MARGOLIS EDELSTEIN Carol Moose, Legal Assistant M:\mdir\1 QBE\20250.4-00006 Benson v. Melbourne\Pleadings\Acceptance and EOA Crytzer.7-7-14.wpd Johnson, Duffie, Stewart & Weidner By: Mark C. Duffie I.D. No. 75906 301 Market Street P. O. Box 109 Lemoyne, Pennsylvania 17043-0109 (717) 761-4540 mcd@jdsw.com KAITLYNN F. BENSON, Plaintiff v. MELBOURNE PLACE CONDOMINIUM ASSOC., MICHELLE C. CRYTZER, MICHAEL D. PATCH, DENISE H. KOSER, LOU ANN GUILLES, and CINDY CONNORS, Defendants §fit _ED OiFF ICi` A= THE PtOTHOHOIr,h® AUG 22 P11I2:t9 00 PENNSYLVANIACOUNTY Attorneys for Plaintiff IN THE COURT 0 F COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 14-3403 CIVIL TERM MOTION FOR CONTINUANCE AND NOW, comes the Plaintiff, Kaitlynn F. Benson, by and through her counsel, Johnson, Duffie, Stewart & Weidner, P.C., and files this Motion for Continuance and in support thereof of avers as follows: 1. On June 6, 2014, Plaintiff filed a Complaint for Special Injunctive Relief Pursuant to Pa.R.C.P. 1531. 2. By Order of Court, dated June 25, 2014, and upon consideration of Plaintiff's Complaint for Special Injunctive Relief Pursuant to Pa.R.C.P. 1531, a Rule was issued upon Defendants to show cause why the relief requested should not be granted. Said Rule was returnable one (1) week prior to the scheduled hearing. 2 3. The aforementioned Order of Court, dated June 25, 2014, also scheduled a hearing in the matter for Tuesday, August 26, 2014 at 1:30 p.m. in Courtroom No. 5, Cumberland County Courthouse, Carlisle, Pennsylvania. 4. The parties are in the process of working toward a settlement in this matter and additional time (at least 20 days) will be required to follow through and complete this proposed settlement. 5. R. James Reynolds, Jr., counsel for Defendant, Melbourne Place Condominium Association as well the individual named Defendants, consents to the continuance under the circumstances. 6. Counsel for the Defendants, R. James Reynolds, Jr. is consenting to the continuance provided that the Order of Continuance also contains a provision as in the June 25, 2014 Order pertaining to the Rule being returnable one week prior to the rescheduled hearing. 7. All proceedings and pleadings in this matter have been directed and assigned to The Honorable Christylee L. Peck. 8. The parties anticipate that the hearing will take approximately one (1) hour. 3 WHEREFORE, the undersigned, with the consent of opposing counsel, requests this Honorable Court to grant a continuance of the hearing currently scheduled for Tuesday, August 26, 2014 to the next available date, no less than 20 days after August 26, 2014. Respectfully submitted, JOHNSON, DUFFIE, STA By: :647609 ark C. Dtiffie 301 Market Street P.O. Box 109 Lemoyne, PA 17043 (717) 761-4540 Attorney for Plaintiff WEIDNER 4 CERTIFICATE OF SERVICE I HEREBY CERTIFY that I served a true and correct copy of the foregoing Motion for Continuance by depositing a copy of same in the United States Mail at Lemoyne, Pennsylvania, with V first-class postage prepaid on the 0(2 day of August, 2014, addressed to the following: R. James Reynolds, Jr. 3510 Trindle Road Camp Hill, PA 17011 JOHNSON, DUFFIE, J'EW :,,T & WEIDNER By: Mark C. Duffie 111 KAITLYNN F. BENSON, : IN THE COURT OF COMMON PLEAS OF Plaintiff : CUMBERLAND COUNTY, PENNSYLVANIA v. : NO. 14-3403- CIVIL MELBOURNE PLACE CONDOMINIUM : ASSOCIATION, MICHELLE C. CRYTZER: MICHAEL D. PATCH, DENISE H. KOSER, LOU ANN GUILLES, AND CINDY CONNORS, Defendants NOTICE TO PLEAD TO: KAITLYNN F. BENSON, Plaintiff c/o Mark C. Duffie, Esquire Johnson, Duffle Stewart & Weidner 301 Market Street P.O. Box 109 Lemoyne, PA 17043-0109 YOU ARE HEREBY NOTIFIED to plead to the enclosed NEW MATTER within twenty (20) days of service hereof, or a default judgment may be entered against you. Date: 7--4-v-AJ`f R. /es Reynolds, r. PA Attorney I.D. No. 10252 Margolis Edelstein 3510 Trindle Road Camp Hill, PA 17011 Telephone: 717-760-7505 Fax: 717-975-8124 Email — Reynolds@margolisedelstein.com Attorney for Defendants R. JAMES REYNOLDS, JR., ESQUIRE Pa. Supreme Court I.D. No. 10252 MARGOLIS EDELSTEIN 3510 Trindle Road Camp Hill, PA 17011 Telephone: (717) 760-7505 Facsimile: (717) 975-8124 E -Mail: jreynolds@margolisedelstein.com Attorney for Defendants KAITLYNN F. BENSON, : IN THE COURT OF COMMON PLEAS OF Plaintiff, : CUMBERLAND COUNTY, PENNSYLVANIA v. : NO. 14-3403- CIVIL MELBOURNE PLACE CONDOMINIUM : ASSOCIATION, MICHELLE C. CRYTZER: MICHAEL D. PATCH, DENISE H. KOSER, LOU ANN GUILLES, AND CINDY CONNORS, Defendants DEFENDANTS' ANSWER WITH NEW MATTER TO PLAINTIFF'S COMPLAINT AND NOW, come Defendants Melbourne Place Condominium Association, Michelle C. Crytzer, Michael D. Patch, Denise H. Koser, Lou Ann Guilles and Cindy Connors ("Defendants"), by their undersigned attorney, and file this Answer with New Matter to the Complaint of Plaintiff Kaitlynn F. Benson ("Plaintiffs"): ANSWER 1 Denied. After reasonable investigation, Defendants are without knowledge or infoimation sufficient to form a belief as to the truth of the averments of this paragraph, and therefore they are denied. 2. Admitted. By way of further answer, Melbourne Place Condominium Association ("the Association") is managed by Sterling Property Management, Inc. with a principal place of business at 337 Lincoln Street, Carlisle, PA 17013. 2 3. Admitted in part and denied in part. It is admitted that Michelle C. Crytzer is an adult individual, that she resides at 105 Melbourne Lane, Mechanicsburg, PA 17055, and that she was formerly a member of the Executive Board of the Association and the President thereof. It is denied that she is currently a member of the Executive Board of the Association and that she is the President thereof. The remaining averments of this paragraph are denied. 4. Admitted in part and denied in part. It is admitted that Michael D. Patch is an adult individual, that he resides at 126 Melbourne Lane, Mechanicsburg, PA 17055, that he is a member of the Executive Board of the Association, and that he was formerly the Treasurer thereof By way of further answer, he is currently the President of the Board, and has been since February 2014. The remaining averments of this paragraph are denied. 5. Admitted in part and denied in part. It is admitted that Denise H. Koser is an adult individual, that she resides at 111 Melbourne Lane, Mechanicsburg, PA 17055, that she is currently a member of the Executive Board of the Association, and that she was formerly the Secretary of the Board. The remaining averments of this paragraph are denied. 6. Admitted in part and denied part. It is admitted that Lou Ann Guilles is an adult individual, that she formerly resided at 128 Melbourne Lane, Mechanicsburg, PA 17055, and that she was formerly a member of the Executive Board of the Association. She no longer resides in the Melbourne Place Condominium ("Condominium"). It is denied that she is currently a member of the Executive Board of the Association. The remaining averments of this paragraph are denied. 7. Admitted in part and denied in part. It is admitted that Cindy Connors is an adult individual, and that she was formerly a member of the Executive Board of the Association. It is denied that she currently resides at 195 Melbourne Lane, Mechanicsburg, PA 17055 and that she is 3 currently a member of the Executive Board of the Association. She no longer resides in the Melbourne Place Condominium. The remaining averments of this paragraph are denied. 8. Admitted in part and denied in part. It is admitted that a copy of a Deed dated December 14, 2010 between Kensington Arms Associates and Plaintiff is attached to Plaintiff's Complaint as Exhibit A. The remaining averments of this paragraph are denied since the Deed, being in writing, speaks for itself. 9. Admitted in part and denied part. It is admitted that a copy of a document titled "Declaration of Condominium of Melbourne Place, a Townhome Condominium" dated March 28, 2006 is attached to Plaintiff's Complaint as Exhibit B. The remaining averments of this paragraph are denied since the Declaration, being in writing, speaks for itself. 10. Denied. The averments of this paragraph are denied since the Declaration, being in writing, speaks for itself. By way of further answer, after reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the truth of the averments of this paragraph, and therefore they are denied. 11. Denied. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the truth of the averments of this paragraph, and therefore they are denied. 12. Admitted in part and denied in part. It is admitted that a copy of a document titled "Standard Agreement for the Sale of Real Estate" is attached as Exhibit C to Plaintiffs Complaint. The remaining averments of this paragraph are denied since the document, being in writing, speaks for itself. 13. Denied. The averments of this paragraph the are denied since the Agreement of Sale, 4 being in writing, speaks for itself. 14. Admitted in part and denied in part. It is admitted that a copy of a document titled "USBHM Established Condominium Project Underwriting Questionnaire" ("the Questionnaire") is attached to Plaintiff's Complaint as Exhibit D. It is admitted that a copy of the Questionnaire was provided to the Association. However, it is denied that it was provided to the Association by Wells Fargo. To the contrary, it was provided to the Association by representatives of the prospective buyer of the unit owned by Plaintiff. The remaining averments of this paragraph are denied since the Questionnaire, being in writing, speaks for itself. 15. Admitted in part and denied in part. It is admitted that the Association has entered into an agreement with Sterling Property Management, Inc. ("Sterling"), a Pennsylvania corporation, to provide management services on behalf of the Association. It is admitted that the registered office address of Sterling is 1442 Trindle Road, Carlisle, PA 17043. However, the principal business address of Sterling is 337 Lincoln Street, Carlisle, PA 17013. To the extent the averments of this paragraph are inconsistent with the foregoing, they are denied. 16. Admitted in part and denied in part. It is admitted that a copy of the Resale Certificate dated April 7, 2014 provided by Sterling on behalf of the Association for the unit owned by Plaintiff at 190 Melbourne Lane, Mechanicsburg, PA 17055 is attached to Plaintiff's Complaint as Exhibit E. However, the averment that Sterling, acting on behalf of the Association and the Defendants, refused to provide any additional information is denied. By way of further answer, in addition to the Resale Certificate attached to Plaintiff's Complaint as Exhibit E, on April 7, 2014, the Association timely provided to the prospective buyer's representatives, pursuant to their request, an Addendum to the Resale Certificate titled "Melbourne Place, a Townhome 5 Condominium/Condominium Information," a copy of which is attached hereto as Exhibit A; a Budget; an Emergency Contact Information Form; a Maintenance Request Form; a Membership Agreement; and insurance information. It is also denied that Defendants refused to complete the Questionnaire. By way of further answer, the Association was agreeable to completing the Questionnaire but not agreeable to signing it based upon advice of counsel, since this is not required under the Uniform Condominium Act, 68 Pa. C.S. § 3101 et seq. ("the Act"). Defendants provided and/or were intending to provide prior to the conveyance of the unit all information required under the Act, including section 3407 of the Act, 68 Pa. C.S. § 3407. 17. Denied. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the truth of the averments of this paragraph, and therefore they are denied. By way of further answer, it is averred that "most" lenders do not require that similar questionnaires be signed by a representative of the Association. 18. Denied. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the truth of the averments of this paragraph, and therefore they are denied. By way of further answer, the prospective buyer of Plaintiff s unit applied for a conventional, not a FHA, mortgage. 19. Admitted in part and denied in part.. It is admitted that Melbourne Place, a Townhome Condominium was a FHA approved and certified community and that the certification expired on May 4, 2014. However, a FHA certification is effective for six months after it expires. It is denied that the Association has taken no steps towards renewing the FHA certification. To the contrary, the Association has submitted for approval to the United States Department of Housing and Urban Development ("HUD") a FHA recertification package, which is currently pending. The 6 23. Denied. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the truth of the averments of this paragraph, and therefore they are denied. By way of further answer, it is specifically denied that Defendants refused to complete the Questionnaire. To the contrary, Defendants were agreeable to completing the Questionnaire, but not to signing it, based upon advice of counsel. Further, it is specifically denied that any acts of Defendants prevented the prospective buyer of Plaintiff s unit from obtaining a mortgage. Defendants provided and/or were intending to provide prior to the conveyance of the unit all information required under the Act, including section 3407 of the Act, 68 Pa. C.S. § 3407. 24. Denied. The averments of this paragraph are denied since section 3303 of the Act, being in writing, speaks for itself. By way of further answer, the Executive Board of the Association at all times acted on behalf of the Association in the performance of their duties in the best interests of the Association in the manner described in section 3303(a) of the Act, 68 Pa. C.S. § 3303(a). 25. Denied. The averments of this paragraph are denied since section 3303 of the Act, being in writing, speaks for itself. By way of further answer, the Executive Board of the Association acted in good faith, in the best interest of the Association and with such care in the manner set forth in section 3303(a) of the Act, 68 Pa. C.S. § 3303(a), and therefore they are not liable to Plaintiff or anyone. 26. Denied. The averments of this paragraph are denied since section 3303 of the Act, being in writing, speaks for itself. By way of further answer, the officers and Executive Board members of the Association relied in good faith upon the opinion and advice of counsel pursuant to section 3303(a) of the Act, 68 Pa. C.S. § 3303(a). 27. Denied. After reasonable investigation, Defendants are without knowledge or 8 information sufficient to form a belief as to the truth of the averments of this paragraph, and therefore they are denied. By way of further answer, it is specifically denied that Defendants refused to provide the information required by the lender. To the contrary, Defendants provided the information described in paragraph 16 hereof, and altough they were not required to do so under the Act, they were willing to complete the Questionnaire, but not sign it, based upon advice of counsel. Defendants provided and/or were intending to provide prior to the conveyance of Plaintiff's unit all information required under the Act, including section 3407 of the Act, 68 Pa. C.S. § 3407. 28. Denied. The averments of this paragraph state a conclusion of law to which no response is required. By way of further answer, Defendants provided and/or were intending to provide prior to the conveyance of Plaintiff s unit all information required under the Act, including section 3407 of the Act, 68 Pa. C.S. § 3407. 29. Denied. The averments of this paragraph state a conclusion of law to which no response is required. WHEREFORE, Defendants demand that Plaintiff's Complaint be dismissed and that judgment be entered in their favor and against Plaintiff, with costs of suit assessed to Plaintiff. NEW MATTER 30. Defendants incorporate by reference herein their answers to paragraphs 1 through 29 inclusive hereof as if set forth in their entirety. 31. Plaintiff has failed to state a claim for which injunctive relief can be granted. 32. Defendants Crytzer, Guilles and Connors are not currently officers or members of the Executive Board of the Association, and therefore the Complaint against them should be dismissed. 9 33. Pursuant to section 3303(a) of the Act, 68 Pa. C.S. § 3303(a), officers and members of the Executive Board of the Association are entitled to rely in good faith on the opinions of counsel, which they did in this case. Therefore, the Complaint against the five individual Defendants should be dismissed. 34. Pursuant to section 3407(b) of the Act, 68 Pa. C.S. § 3407(b), the Association timely provided a Resale Certificate, documents, and other information to enable Plaintiff (the unit owner) to comply with section 3407(a) of the Act, 68 Pa. C.S. § 3407(a). 35. Although not required to do so pursuant to section 3407(b) of the Act, 68 Pa. C.S. § 3407(b), Defendants were willing to provide to the prospective buyer's lender a completed Questionnaire, but were not willing to sign the Questionnaire based upon advice of counsel. 36. The prospective buyer of Plaintiff's unit applied for a conventional mortgage, not a FHA mortgage. Therefore, Plaintiff's averments regarding the Condominium's FHA certification are not relevant to this action. In any event, the Condominium's FHA certification is effective for six months after it expired on May 4, 2014, and the Association has submitted to HUD for approval a FHA recertification package. 37. Plaintiff is not threatened with immediate and irreparable harm by the alleged acts or omissions of Defendants, and therefore Plaintiff is not entitled to injunctive relief. 38. Plaintiff has an adequate remedy at law, and therefore Plaintiff is not entitled to injunctive relief. 39. It is probable that Plaintiff will not prevail on the merits of her Complaint, and therefore Plaintiff is not entitled to injunctive relief. 40. Plaintiff is requesting a mandatory injunction, rather than a prohibitory injunction. 10 A mandatory special injunction is an extraordinary judicial act and should be issued only in exceptional cases. This is not an exceptional case in which a mandatory injunction should be granted. WHEREFORE, Defendants demand that Plaintiff's Complaint be dismissed and that judgment be entered in their favor and against Plaintiff, with costs of suit assessed to Plaintiff. Date: August , 2014 11 ,40 y R. .:des Reynolds, J . PA Attorney ID No. 10252 Margolis Edelstein 3510 Trindle Road Camp Hill, PA 17011 717-760-7505 Attorney for Defendants VERIFICATION I, Jen Holtry, Portfolio Manager of Melbourne Place Condominium Association, one of the Defendants, hereby state that I am authorized to make this verification on behalf of Defendants, and that the facts set forth in the foregoing Defendants' Answer with New Matter to Plaintiff's Complaint are true and correct upon my personal knowledge or information and belief. I understand that the statements in this verification are subject to the penalties of 18 Pa. C.S.A. § 4904 relating to unsworn falsification to authorities. Date: l':2-40 CERTIFICATE OF SERVICE I, the undersigned, do hereby certify that I have this G1 day of 2014, served a true and correct copy of the foregoing Defendants' Answer with Plaintiff's Complaint upon the person(s) and in the manner indicated below: Service by First Class Mail, Postage Prepaid, Addressed as Follows: Mark C. Duffie, Esquire Johnson, Duffle, Stewart & Weidner 301 Market Street P.O. Box 109 Lemoyne, PA 17043-0109 (Attorney for Plaintiff) By: M:\ndir\1 QBE\20250.4-00006 Benson v. Melbourne\Pleadings\Answer.8-15-14.wpd MARGOLIS EDELSTEIN Matter to Carol Moose, Legal Assistant ( Exhibit A MELBOURNE PLACE, A TOWNHOME CONDMINIUM CONDOMINIUM INFORMATION Project Name: Melbourne Place, a Townhome Condominium Project Location: Upper Allen Township, Cumberland County, Commonwealth of Pennsylvania Number of Residential Condominium Units: 122 Number of Commercial Condominium Units: 0 Total Number of Condominium Units: 122 Melbourne Place is a completed, residential condominium project. Melbourne Place is not a time share, resort, hotel, motel, live -work or rental community. Melbourne Place is administered by the Melbourne Place Condominium Association, a Pennsylvania non-profit corporation; with a business address in care of Sterling Property Management, Inc., 337 Lincoln Street, Carlisle, PA 17013; 717-258-5800. Melbourne Place is not controlled by a developer; it is not subject to further development or phasing. The units and common elements are 100% complete; more than 90% of the units are sold and closed. It is not known whether any single entity, individual or group might own more than 10% of the units. The Melbourne Place Condominium Association does not have knowledge of any litigation affecting the property or its interests, except as may be disclosed in any Resale Certificate it may issue. Melbourne Place is not subject to any leasehold agreements. Melbourne Place is subject to a Declaration of Condominium, and the amendments thereof, filed in the office of the Recorder of Deeds of Cumberland County at Book 725, Page 4313, et seq. The Melbourne Place Condominium Association operates under and subject to the Bylaws of the Melbourne Place Condominium Association and the Rules and Regulations of the Melbourne Place Condominium Association. Resale Certificates may be obtained by contacting Sterling Property Management, Inc., 337 Lincoln Street, Carlisle, PA 17013; 717-258-5800. The foregoing information is offered as courtesy only, without certification, verification or recourse. The foregoing information does not amend or supplement any portion of any Resale Certificate issued, or to be issued, for any unit. The foregoing information should be confirmed or verified by the reader. The reader is urged to review the Melbourne Place Declaration, it amendments, the Bylaws and the Rules and Regulations. EXHIBIT Johnson, Duffie, Stewart & Weidner By: Mark C. Duffie I.D. No. 75906 301 Market Street P. O. Box 109 Lemoyne, Pennsylvania 17043-0109 (717) 761-4540 mcd@jdsw.com Attorneys for Plaintiff KAITLYNN F. BENSON, IN THE COURT 0 F COMMON PLEAS OF Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA v. CIVIL ACTION - LAW MELBOURNE PLACE CONDOMINIUM ASSOC., MICHELLE C. CRYTZER, MICHAEL D. PATCH, DENISE H. KOSER, LOU ANN GUILLES, and CINDY CONNORS, Defendants NO. 14-3403 CIVIL TERM ORDER OF COURT _,fl _3 AND NOW, this oeVV day of August, 2014, upon consideration of Plaintiff's Motion for Continuance and the Defendants' consent to said Motion, the hearing currently scheduled for Tuesday, August 26, 2014, at 1:30 p.m., in Courtroom No. 5, Cumberland County Courthouse, Carlisle, Pennsylvania, is hereby continued until 1D2<€.72Cra4_,), Za, 2014 at 3w) e.m. in Courtroom No. ,t) , Cumberland County Courthouse, Carlisle, Pennsylvania. Further the Rule to Show Cause why the relief requested should not be granted shall again be returnable one (1) week prior to the herein rescheduled hearing. BY THE COURT: Gef Christylee L. Peck, J. Distribution: ark C. Duffle, Esquire, Johnson, Duffle, Stewart & Weidner, P.C., 301 Market Street, P.O. Box 109, Lemoyne, PA 17043-0109 James Reynolds, Jr., Margolis Edelstein, 3510 Trindle Road, Camp Hill, PA 17011 :647446 frzaLL Johnson, Duffle, Stewart & Weidner By: Mark C. Duffie I.D. No. 75906 301 Market Street P. 0. Box 109 Lemoyne, Pennsylvania 17043-0109 (717) 761-4540 mcd@jdsw.com KAITLYNN F. BENSON, Plaintiff v. MELBOURNE PLACE CONDOMINIUM ASSOC., MICHELLE C. CRYTZER, MICHAEL D. PATCH, DENISE H. KOSER, LOU ANN GUILLES, and CINDY CONNORS, Defendants TO THE PROTHONOTARY: FiLED-OFFICt. OF THE PROTHONO TAM' 2014 OCT -9 PH 12: 03 CUMBERLAND COUNTY Attorneys for Plaintiff PENNSYLVANIA IN THE COURT 0 F COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO, 14-3403 CIVIL TERM PRAECIPE TO WITHDRAW Kindly withdraw Plaintiff's Complaint for Special Injunctive Relief Pursuant to Pa.R.C.P. 1531, filed on June 6, 2014 without prejudice. Dated: / 0/8' :654053 Respectfully submitted, JOHNSON, DUFFIE, STE ART & WEIDNER By: Mark C. Duffie 301 Market Street P.O. Box 109 Lemoyne, PA 17043 (717) 761-4540 Attorneys for Plaintiff CERTIFICATE OF SERVICE I HEREBY CERTIFY that I served a true and correct copy of the foregoing Praecipe to Withdraw by depositing a copy of same in the United States Mail at Lemoyne, Pennsylvania, with first-class postage prepaid on the 8" day of October, 2014, addressed to the following: R. James Reynolds, Jr. 3510 Trindle Road Camp Hill, PA 17011 JOHNSON, DUFFIE,STEW T & WEIDNER By: -' 4 -Mark C. Duffle KAITLYNN F. BENSON : IN THE COURT OF COMMON PLEAS OF Plaintiff : CUMBERLAND COUNTY, PENNSYLVANIA v. : CIVIL ACTION — LAW MELBOURNE PLACE CONDOMINIUM ASSOC., MICHELLE C. CRYTZER, MICHAEL D. PATCH, DENISE H. KOSER, LOU ANN GUILLES, and CINDY CONNORS, Defendants : NO. 14-3403 CIVIL TERM ORDER OF COURT AND NOW, this 9th day of October, 2014, upon consideration of Plaintiff's Praecipe to Withdraw Plaintiffs Complaint for Special Injunctive Relief Pursuant to Pa. R.C.P. 1531, the hearing previously scheduled for November 10, 2014, is cancelled. BY THE COURT, ireer( Christy& L. Peck, J. C. Duffle, Esq. 301 Market Street P.O. Box 109 Lemoyne, PA 17043-0109 Attorney for Plaintiffs X. James Reynolds, Jr. 3510 Trindle Road Camp Hill, PA 17011 :rc rre_.;1EarL