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GRANT FARM CONDOMINIUM
BY
THE GRANT FARM PARTNERS
DECLARATION PURSUANT TO TITLE 33,
CHAPTER 31, SECTION 1601–101 ET. SEQ.
KNOWN AS THE MAINE
CONDOMINIUM ACT
Filed:
York County Registry of Deeds
Book 4146 Page 211
This Declaration dated December 24, 1986, is filed pursuant to Section 1602–101 of the Maine Condominium Act as appears in the Maine Revised Statutes, as amended, Title 33, Chapter 31, Section 1601–101, et. seq. to which reference is specifically made and which Act is incorporated herein by reference and to which all owners of units described herein, and their heirs, successors and assigns, shall be bound.
THE GRANTS FARM PARTNERS (“Declarant”), a Maine general partnership with a place of business at Kennebunk, County of York and State of Maine, hereby submits the land hereinafter described in Appendix I attached hereto and incorporated herein with the buildings and improvements thereon (“the Property”), formerly known as the Grant Farm Apartments on Route #9 in Kennebunk, Maine, to the provisions of said Maine Condominium Act. The Property is subject to and shall have the benefit of all easements, rights of way and matters affecting title described or referred to in Appendix I or in the survey to which reference is hereinafter made. A properly prepared and certified plat of the land and plans of the units ace recorded simultaneously with this Declaration in Condo File 253, Page 1–7, in the York County Registry of Deeds.
Declarant reserves the right to create thirty-two (32) units, to be numbered one through thirty-two, of which units one through twelve are hereby created. The location and boundaries of all 32 units are shown on the plat and plans referred to in Section 1 hereof. The right to create additional units may be exercised by the Declarant at any time, subject to the time limit set forth in Section 7 of this Declaration. The right may be exercised at different times with respect to different units, and in any order, and the right may be exercised with respect to any or all of the units, in the discretion of the Declarant.
Reference is made to the recorded plat and plans referred to in Section 1 hereof for the identification number of each unit showing the location and dimensions of its boundaries. The boundaries of each unit are the interior unfinished surfaces of the floors, ceilings and walls separating the units from common areas or from other units. All floor and wall coverings, including linoleum, polyurethane, carpeting, paint, wallpaper, etc. are included within the boundaries of a unit. The provisions of Section 1602–102 of the Maine Condominium Act are adopted and incorporated herein by reference. The provisions of Section 1602–112 of the Maine Condominium Act shall govern relocation of boundaries between units. The subdivision of a unit into two or more units is prohibited. The buildings are of wood-frame construction, having either one or two stories, and existing poured concrete foundations. The units will contain one, two or three bedrooms, and will be provided with electric heat on a separately metered basis. The building exteriors will be shingles and clapboard. The roofs will be of asphalt shingles. Portions of buildings will contain crawl spaces beneath the units, and other portions will have garages beneath the units, all as shown on the plans referred to in Section 1 hereof.
Each of the units will be conveyed together. with its respective undivided interest in the common elements as hereinafter set forth and will have the benefit of the right to use the common elements in common with others entitled thereto as provided by the By-Laws of GRANT FARM CONDOMINIUM ASSOCIATION (hereinafter referred to as the “Association”) and the rules and regulations adopted by the Association.
The common elements consist of:
(a) The land described in paragraph one (1) hereof;
(b) The foundations, exterior walls, roofs, columns, girdes, beams and supports of the buildings;
(c) All walls; partitions, floors and ceilings separating units from common areas or other units other than the interior finished surface thereof;
(d) The central and appurtenant installations for service such as power, light, telephone, hot and cold water, heat (including all pipes, pipechases, ducts, wires, cables and conduits used in connection therewith, whether located in common areas or in units) all equipment attendant thereto, utility spaces, and all facilities contained within any unit which serve parts of the condominium other than the unit within such facilities are contained;
(e) The sewer and drainage pipes;
(f) All other parts of the condominium property and all apparatus and installations existing in the buildings or on the property for common use when necessary or convenient to the existence, maintenance, safety or enjoyment of the condominium, including, but not limited to yards, gardens, walkways, driveways and any and all roadways as shown on said plan.
Any garage is a limited common element allocated exclusively to the unit as designated on the plans referenced in Section 1 hereof. The paved driveway area serving units one through thirty-two shall be a common element, but two parking spaces shall he designated for each Unit and as a limited common element allocated exclusively to each unit.
The fraction of undivided interest in the common elements, voting rights and common expense liabilities appertaining to each unit is set forth in Appendix II attached hereto and incorporated herein by reference. No fraction of undivided interest allocated to any unit shall be altered except upon the unanimous vote of all unit owners and their first mortgagees.
The Declarant reserves the right until the coversion and sale of all 32 units is completed, or until ten years from the date of recordation of this Declaration, whichever occurs first, to:
(a) Change the size, layout, and locatioin of any unit as may be required by the terrain or other considerations related to construction. The change or changes shall be effective upon the recording of
(i) an amendment to this Declaration and (ii) the filing of modified plans indicating the changes made or an affidavit pursuant to §1602–109(f) of the Act.
(b) Locate on the Property, even though not depicted on the plat and plans, and grant and reserve easements and rights of way for the installation, maintenance, repair, replacement and inspections of, utility lines, wires, pipes, conduits, and facilities, including, but not limited to, water, electric, telephone and fuel oil and sewer.
(c) Connect with and make use of utility lines, wires, pipes and conduits located on the Property for construction and sales purposes, provided that the Declarant shall be responsible for the cost of service so used.
(d) Use the common elements for ingress and egress and for the storage of construction materials and equipment used in the completion of the improvements shown on the plats and plans.
(e) Operate a management office and a sales office and have prospective purchasers and others visit such offices and use certain portions of the common elements including the roadways and parking spaces. The management office and sales office may be located in any unit owned by Declarant or on common elements and may be of such size and in such location as the Declarant shall deem convenient and shall not unreasonably interfere with use of the common elements by other unit owners. Any management office and sales office not designated a unit shall be the property of Declarant, which Declarant reserves the right to remove within forty-five (45) days after Declarant ceases to he a unit owner.
(f) Install and maintain signs and lighting for sales.
(g) With respect to any units remaining unsold by Declarant, Declarant may let or lease such units or use such units as models for display for purposes of sale or rental of the units.
(h) Appoint and remove the officers of the Association and members of the executive hoard, in accordance with the provisions of the By-Laws. Provided, however, the Declarant shall relinquish all special rights expressed or implied through which he may directly or indirectly control, direct, modify or veto any action of the Association, its Board of Directors or the majority of unit owners, and control of the Owners Association shall pass to the owners of units within the Property not later than the earlier of the following: sixty (60) days after the date by which seventy-five percent (75%) of the units which may be created have been conveyed to unit purchasers or five (5) years from the date of conveyance of the first Unit to a unit purchaser or seven (7) years from the date of recording of this Declaration. The requirements of this paragraph shall not affect the Declarant’s rights, as a unit owner, to exercise the votes allocated to units owned by the Declarant.
(i) Exercise the development right to create units 13 through 32 as reserved in Section 2 hereof. This right may be exercised at different times with respect to different units, and in any order, and the right may be exercised with respect td any or all of the units, in the discretion of the Declarant. The exercise of the right to create additional units shall be effective upon the recordation in the York County Registry of Deeds of an amendment executed by the Declarant, its successors or assigns, pursuant to Section 1601–110 of the Maine Condominium Act and new plats and plans or an affidavit pursuant to Section 1602–109(f) of the Act.
This Section 7 shall not be amended without the consent of the Declarant.
If any portion of the common elements, or any other unit, encroaches at any time upon any unit or upon any portion of the common elements, as a result of minor variations or relocation during construction, settling of the building, alteration. or repair to the common elements made by or with the consent of the Board of Directors, repair or restoration of a unit or building after damage by fire or other casualty or as a result of condemnation or other eminent domain proceedings, an easement shall exist for the encroachment and for its maintenance so long as the building stands.
A. If a unit is acquired by eminent domain, or if a part of a unit is acquired by eminent domain leaving the unit owner with a remnant which may,not practically or lawfully be used for any purpose permitted by this Declaration, any award therefor shall be paid to the unit owner as compensation for his unit and its percentage interest, whether or not any percentage of undivided interest is acquired. Upon acquisition, unless the decree otherwise provides, that unit’s entire percentage of undivided interest, votes in the Association, and common expense liability shall be re-allocated to the remaining units in proportion to the respective interests, votes and liabilities of those units before the taking, and the Association shall promptly prepare, execute and record an amendment to this Declaration reflecting the allocations. Any remnant of a unit remaining after part of a unit is taken under this subsection shall be thereafter a common element.
B. Except as provided in subsection (A) hereinabove, if pact of a unit is acquired by eminent domain, any award therefor shall be paid to the unit owner as compensationfor the reduction in value of the unit. That unit’s allocation of common element interest and common expense liability shall remain unchanged.
C. If a part of the common areas or facilities is acquired by eminent domain, the Association shall represent the unit owners in any condemnation proceedings or in negotiations, settlements and agreements with the condemning authority, and the award shall he paid to the Association for the use and benefit of the unit owners and their mortgagees as their interests may appear. The Association shall divide any portion of the award not used for any restoration or repair of the remaining common elements among the unit owners in proportion to their respective percentages of undivided interest before the taking, but the portion of the award attributable to the acquisition of a limited common element must be equally divided among the owners of the units to which that limited common element was allocated at the time of acquisition.
D. The court decree shall be recorded in the York County Registry of Deeds.
E. Nothing in this Declaration or the By—Laws, rules or regulations of the Association shall be deemed to give the unit owner or any other party priority over any rights of a first mortgagee of a unit pursuant to its mortgage documents in the case of a distribution to such unit owner of condemnation awards for the taking of units and/or common elements.
Each unit owner shall comply strictly with the By-Laws and with the administrative rules and regulations adopted by the Board and with the covenants, conditions and restrictions set forth in this Declaration or in the deed to his unit. Failure to so comply shall be grounds for an action to recover damages or for injunctive relief or both maintainable by the Manager or Board of Directors on behalf of the Association of unit owners, or, in a proper case, by an aggrieved unit owner. An,aggrieved unit owner shall have a right of action against the Association for failure to comply with or to enforce the Declaration, the by-laws, any rules and regulations duly adopted or any requirements imposed by the Act.
a. Each unit in the building is intended to serve as a self-contained living unit and shall be subject to the rules and regulations and By-Laws of the Association. No unit shall be used for other than residential purposes. Rules and regulations consistent with this Declaration may be promulgated by the Board of Directors in order to ensure the peace and security of each resident, and each member shall be notified in writing of the rules and regulations thus promulgated.
b. The common elements shall be used only for access, ingress and egress,to and from the respective units by the members, their lessees, guests, household help and other authorized visitors and for outdoor recreational use incidental to the residential use of the respective units. The use, maintenance and operation of the common elements shall not be obstructed, damaged or unreasonably interfered with by any member. The Board of Directors may adopt rules and regulations that restrict the nature and location of recreational activities upon the common elements.
c. the Association and its authorized employees and representatives shall have access to and from the unit and limited common element as may be necessary for the repair, maintenance, replacement, alteration, care or protection of the common elements or any portion thereof. In the case of emergency repairs, such right of access shall be immediate and may be exercised without notice to the unit owner. Otherwise, the unit owner shall he entitled to reasonable notice of the time and purpose of any entry pursuant to this paragraph.
d. No unit owner shall do any work which may jeopardize the soundness or safety of the property, reduce the value thereof or impair any easement, rights, appurtenances or other hereditament consisting of common elements without the unanimous consent of all other unit owners.
e. Each member shall maintain his unit in good condition and in good order and repair at his own expense and shall not do or allow anything to be done in his unit which may increase the rate or cause the cancellation of insurance on other units or on the common elements. Trash and garbage and other waste shall be kept only in sanitary containers and shall be disposed of in a clean and sanitary manner in accordance with rules and regulations to be promulgated by the Board of Directors.
g. Each member shall, at his expense, maintain insurance on his unit and contents to the extent not covered by the master blanket policy maintained by the Association.
h. Household pets shall be allowed in such numbers as the Board of Directors determines will not create a nuisance to unit owners. The Board of Directors may adopt regulations with respect to the number, size and type of allowable household pets. Such regulations shall become effective when written notice thereof is delivered or mailed to the members and shall operate prospectively as to all pets subsequently brought into the Property. No animals shall be permitted in any common element unless accompanied by and under the direct supervision of a unit owner or member of unit owner’s household.
i. No commercial activity of any nature shall be permitted on the Property.
j. The parking spaces and garage spaces are to be used only for the parking of motor vehicles owned for personal use. No commercial vehicles, trailers, motor homes, boats or trucks with a gross weight over 6,000 pounds shall be permitted in the parking spaces; except service vehicles, moving vans or the like at the property on business. No mechanical repairs of vehicles shall be performedfand no stripped or junk vehicles and no boats shall be placed or maintained on any part of the common elements or limited common elements.
Each unit owner shall pay to the Unit Owners’ Association, or its authorized representative, monthly, his proportionate share of the budgeted expenses of maintenance, repair, replacement, administration and operation of the common elements; management of the Association; and maintenance of adequate working capital and reserves, which expenses are hereinafter referred to collectively as “common expenses”. Such proportionate share shall be in the same ratio as said unit owner’s percentage of ownership in the common elements. Payment thereof shall be in equal monthly amounts and subject to annual review and adjustment.
In the event of the failure of a unit owner to pay such proportionate share when due, the amount thereof together with interest at the rate established by the Association, costs and reasonable attorney’s fees shall constitute a lien on the interest of such unit owner, as provided by the Act; provided, however, that such lien shall be subordinate to the lien of all prior recorded first mortgages on the interest of such unit owner, and the foreclosure of such mortgages, sale or transfer pursuant to foreclosure or transfer to mortgagee in lieu of foreclosure shall, extinguish a subordinate lien for common charges. The entire unpaid share of the common expenses or assessments by the Association of Unit Owners chargeable to such unit, which became due prior to the foreclosure, shall become common expenses collectible from all unit owners, including such acquirer, his heirs, successors and assigns. Such foreclosure shall not release the delinquent unit owner from personal liability to the Association for unpaid common expenses.
Any unit owner in default in the payment of any amount due the Association or in violation of any provisions of the Condominium Act, this Declaration, the By-Laws or the rules and regulations of the Association, which violation continues for ten (10) days after notice thereof by the Association to the unit owner, may be prohibited by the Board of Directors from the use and enjoyment of any and all of the common elements not essential to access to the unit, in addition to all other remedies available to the Board of Directors.
Each unit owner shall furnish and be responsible for, at his own expense, all the maintenance, repairs, and replacements within his own unit; provided, however, such maintenance, repair and replacements as may be required for the functioning of or for the bringing of utilities, such as water, gas, electricity and sewer to the unit, shall be furnished by the Association as part of the common expenses. Maintenance repairs and replacements of the refrigerators, stoves and other kitchen appliances and indoor and outdoor lighting fixtures and other electrical or techanical appliances (including all heating, ventilation and air-conditioning systems which may be located outside of, but adjacent to the unit) of any unit owner shall be at the expense of such unit owner. Except as provided below maintenance, repairs and replacements of the common elements and limited common elements small be furnished by the Association as part of the common expenses. If due to the negligent act or omission of a unit owner or a member of his family or of a guest or other authorized occupant or visitor of such unit owner, damage shall be caused to the common elements or to a unit or units owned by others, and maintenance, repairs or replacements shall be required which are not covered by insurance and which would otherwise be a common expense, then such unit owner shall pay for such damage and such maintenance, repairs and replacements, as may be determined by the Association. Each unit shall be responsidble for the maintenance, repair and replacement of all screens, windows and doors appurtenant to his unit.
Prior to the date of this Declaration and the recording thereof, GRANT FARM CONDOMINIUM ASSOCIATION, a non-profit and non-stock corporation was duly organized under the laws of the State of Maine. The Assocition shall be the governing body for all of the unit owners with respect to the administration, maintenance, repair and replacement of the Property as provided by the Act, this Declaration and the By-Laws.
Each unit owner and/or owners shall be a regular member of the Grant Farm Condominium Association. Membership shall be appurtenant to the units, and the transfer of title to a unit shall automatically transfer the regular membership appurtenant to that unit to the transferee or transferees. A transfer in mortgage, however, shall not transfer membership until foreclosure or sale in lieu of foreclosure.
The provisions of this Declaration and the By-Laws and the rights and obligations established thereby shall be deemed to be covenants, running with the land, so long as the Property remains subject to the provisions of the Act and shall inure to the benefit of and be binding upon each and all of the unit owners and their respective heirs, representatives, successors, assigns, purchasers, lessees, grantees and mortgagees. By the recording or the acceptance of a deed conveying a unit of any interest therein, or any ownership interest in the property whatsoever, the person to whom such unit or interest is conveyed shall be deemed to accept and agree to be bound by and subject to all of the provisions of the Act, this Declaration, and the By-Laws.
In any voluntary conveyance of a unit deed, it shall be the duty of the seller to furnish the buyer with a copy of this Declaration, the Association By-Laws and rules and regulations as they may from time to time be amended. The Declarant or the Association shall make available to unit owners, prospective Purchasers, lenders and the holders, insurers and guarantors of the first mortgage on any unit, current copies of the Declaration, By-Laws and other rules and regulations governing the condominium, and other books, records and financial statements of the Association. This requirement may be satisfied by making the documents available for inspection upon request during normal business hours or under other reasonable circumstances. If copies are requested, the Declarant or Association may, but shall not be obligated to, make them available at a reasonable charge.
The Secretary shall cause notice of all meetings of members and of all proposed actions requiring vote or approval of a specified percentage of unit owners and/or mortgagees to be sent in writing by U.S. Mail, postage prepaid, to all unit owners and all eligible mortgage holders at the address filed with the Secretary by said owners and mortgage holders not less than ten (10) days and not more than thirty (30) days prior to the proposed meeting or action. Such notice may, however, set a later deadline for any proposed action, if such longer period of time is deemed necessary to obtain the required number of written approvals. Notice of meetings shall state the time and place of the meeting and the items on tie agenda, including the general nature of any proposed amendment to the declaration and bylaws, any budget changes and any proposal to remove a director or officer.
It is understood that real estate taxes are to be separately taxed to each unit owner for his unit and his corresponding percentage of ownership in the common elements, as provided in the Act. In the event that for any year such taxes are not separately taxed to each unit owner, but are taxed on the Property as a whole, then each unit owner shall pay his proportionate share thereof in accordance with his respective percentage of ownership interest in the common elements.
Each unit owner shall pay for his own telephone, electricity and other utilities which are separately metered or billed to each user by the respective utility company. Utilities which are not separately metered or billed shall be treated as part of the common expenses.
The Board of Directors shall obtain insurance on the Property against loss or damage by fire and such other hazards as are covered under Standard Extended Coverage Provisions and all other perils customarily covered for similar types of projects, including those covered by the standard “all risk” endorsement for 100% of the current replacement cost of the common elements and the units, excepting land, foundations, excavations or other items that are usually excluded from insurance coverage. Such policies shall contain all endorsements required by the guidelines promulgated by the Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage Corporation (FHLMC), as the same may be amended from time to time. Such insurance coverage shall be written in the name of, losses under such policies shall be adjusted by, proceeds of such insurance shall be payable to, the Board of Directors as trustees for each of the unit owners in their respective percentages of the ownership interest in the common areas as established in this Declaration. The proceeds of such insurance shall be applied by the Board for the reconstruction of the building, or shall be otherwise disposed of in accordance with the provisions of this Declaration and the Act; and the policies shall contain the standard mortgage clause, providing however the rights of the mortgagee of any unit under any standard mortgage clause endorsement to such policies shall be subject to the provisions in the Act with respect to the application of insurance proceeds to the reconstruction of the building. The policies shall require the insurer to notify in writing the Board of Directors and each first mortgage holder named in the mortgage clause at least twenty (20) days before it cancels or substantially changes the Property’s coverage. The Board of Directors shall obtain a “master” or “blanket” policy of flood insurance as a common expense of the Association, covering any portion of the building and any other property located within a special flood hazard area, as defined by the Federal Emergency Management Agency. The Board shall obtain comprehensive public liability insurance in such amounts as it shall deem desirable, insuring each unit owner and the Association, Board of Directors and Managing Agent, if any, from liability in connection with the common elements. Such policy shall provide coverage of at least $1,000,000.00 for bodily injury and property damage for any single occurrence resulting from the operation, maintenance or use of the common elements, and coverage for any legal liability resulting from law suits related to employment contracts in which the owners’ association is a party. Such policy shall provide for at least twenty (20) days written notice to the Board of Directors and to each holder of a first mortgage on any unit before the insurer can cancel or substantially modify it. Also, the Board shall have authority to purchase worker’s compensation insurance and insurance to indemnify the Directors and Officers for losses in managing the Association’s affairs. The premiums for all the aforementioned insurance coverage shall be common expenses. Each unit owner, at his own cost, shall be responsible for his own insurance on the contents of his own unit and his additions and improvements thereto and decorations and furnishings, personal property therein and stored elsewhere on the property, and his personal liability to the extent not covered by the liability insurance provided by the Association.
The Board of Directors shall have the authority to obtain fidelity bond coverage for anyone who either handles or is responsible for funds held or administered by the Association. Such fidelity bonds shall name the Association as an obligee and shall be written in an amount equal to at least one hundred fifty. (150) percent of the estimated annual operating expense for the condominium, including reserves.
It is the intent of this Declaration that the Association shall maintain all insurance and bond coverage required by FNMA and FHLMC for the sale of first mortgages of units on the secondary mortgage market, and this section shall be interpreted and applied so as to accomplish that purpose.
A. The unit owner who mortgages his unit shall notify the Board of Directors of the name and address of his mortgagee and shall, upon request, file a conformed copy of the mortgage with the Board of Directors.
B. The Board of Directors, whenever so requested in writing by a mortgagee of a unit, shall promptly report to it any then unpaid common charges due from, or any other default by, the owner of the mortgaged unit.
C. The Board of Directors, when giving notice to a unit owner of a default in paying common charges or other violation of the provisions of this Declaration, the By-Laws or Rules and Regulations, shall send a copy of such notice within thirty (30) days after the occurrence of such default to each holder of a mortgage covering such unit whose name and address has previously been furnished to the Board of Directors.
D. Each mortgagee of a unit shall be permitted to examine the books, accounts and records of the condominium at reasonable times on business days and to require annual reports and other financial data of the Corporation. If no audited financial statement is available, any holder of a mortgage on any unit shall be allowed to have an audited statement prepared at its own expense. Provided, however, when the condominium contains 50 or more units, the owners’ association must provide an audited statement for the preceding fiscal year, if the holder, insurer or guarantor of any first mortgage on a unit submits a written request for it.
E. Notwithstanding anything to the contrary elsewhere contained in this Declaration or the By-Laws, the following provisions shall govern:
(1) Any first mortgagee of a unit in the condominium will, upon request, be entitled to inspect the books and records of the condominium or Association during normal business hours.
(2) No provision of this Declaration or of the By-Laws shall he deemed or construed to give a unit owner, or any other party, priority over any rights of first mortgagees of units pursuant to their mortgages in the case of a distribution to condominium unit owners of insurance proceeds or condemnation awards for losses to or a taking of condominium units and/or common elements.
(3) A first mortgagee of a unit shall be entitled to prompt written notification from the Board of Directors of
(i) any default by the mortgagor of such unit in, the performance of such mortgagor’s obligations under this Declaration and/or the By-Laws which is not cured within thirty (30) days,
(ii) any event of substantial destruction to, or condemnation or governmental taking of, such unit or any portion of the common ,elements appurtenant thereto,
(iii) any lapse or modification of insurance or fidelity bond coverage,
(iv) any proposed amendment under Section 19 of this Declaration and
(v) any proposed action of which an eligible mortgage holder is entitled to notice under §1602–119(b) of the Act.
(4) Any first mortgagee of a unit who obtains title to the unit pursuant to the remedies provided in the mortgage, or through foreclosure of the mortgage, or through deed through foreclosure of the mortgage, or through deed (or assignment) in lieu of foreclosure, shall take the property free of any claims for unpaid assessments or charges against such unit which accrue prior to the acquisition of title to such unit by the mortgagees, but such expenses or assessments shall become common expenses collectible from all of the unit owners including one who obtains title accordingly.
(5) An adequate reserve fund for maintenance, repairs and replacement of those common elements which must be replaced on a periodic basis shall be established and shall be funded by regular monthly payments rather than by special assessments, and a working capital fund shall be maintained by the Association equal to at least two months’ assessments for each existing unit as calculated according to Article VI of the By-Laws for the operation and maintenance of the common elements. Such working capital fund shall be paid over to the Association by the Declarant within Sixty (60) days after conveyance of the first unit.
(6) Any management contract, employment contract or lease of parking or recreational areas and any contract entered into by Declarant which may become binding on the Association shall provide that such contract or lease may be terminated by either party without cause and without payment of a termination fee on not more than ninety (90) days’ written notice, the term of any such contract shall not exceed three years, and the Association may terminate said agreement for cause upon thirty (30) days’ written notice without payment of a termination fee.
(7) No unit owner shall be permitted to lease his unit for transient or hotel purposes and no unit owner may lease less than his entire unit. Any lease agreement shall be required to provide that the terms of the lease shall he subject in all respects to the provisions of the Declaration, By-Laws and all Rules and Regulations that may be adopted by the Board of Directors, and that failure by the lessee to comply with the terms of such documents shall be a default under such lease. All leases shall be in writing and shall contain a minimum initial term of thirty (30) days (this provision may be amended only by vote of 100% of all unit owners). A copy of the lease of any Unit shall be delivered to the Board of Directors ;within seven (7) days of its execution, provided, however, that such copy need not disclose the total rent nor monthly rent amount of such lease.
Matters of dispute or disagreement between unit owners or with respect to interpretation of application of the provisions of this Declaration or the By-Laws shall be determined by the Board of Directors consistent with the Act, which determination shall be final and bidding on all unit owners.
All claims, disputes and other matters in controversy between the Declarant, on the one hand, and the Association or any unit owners, on the other hand, arising out of or relating to this Declaration, the By-Laws or the deed to any unit, or the breach thereof, or the Property and any warranties with respect thereto, except for claims which have been waived by the acceptance of a deed, shall be decided by arbitration in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association then obtaining unless the parties mutually agree otherwise. This agreement to arbitrate shall be specifically enforceable under the prevailing arbitration law. The award rendered by the arbitrators shall be final, and judgment may he entered upon it in accordance with applicable law in any court having jurisdiction thereof.
Notice of the demand for arbitration shall be filed in writing with the other parties and with the American Arbitrartion Association. The demand for arbitration shall be made within a reasonable time after the claim, dispute or other matter in controversy has arisen, and in no event shall it he made after the date when institution of legal or equitable proceedings based upon such claim, dispute or other matter in controversy would be barred by the applicable statute of limitations or other principles of law and equity.
Except to the extent expressly permitted or required by the Act, this Declaration may be amended by a vote or by written approval of the unit owners of units to which sixty-seven percent (67%) of the votes in the Association are allocated and written approval from eligible mortgage holders, as defined in the Act, representing fifty-one percent (51%) of the votes allocated to units that are subject to mortgages held by eligible holders.
Notwithstanding the foregoing, except to the extent expressly permitted or required by the Act, the unanimous consent of all unit owners and the written approval of eligible mortgage holders representing sixty-seven percent (67%) of the votes allocated to units that are subject to mortgages held by eligible holders shall be required for any amendment that would:
(a) Seek to terminate the legal status of the Property for reasons other than substantial destruction or condemnation of the property;
(b) Change the pro rata interest, obligations or voting rights of any unit;
(c) By act or omission seek to abandon, partition, subdivide, encumber, sell or transfer the common elements. The granting of easements for public utilities or for other public purposes consistent with the intended use of the common elements by the Association shall not be deemed a transfer within the meaning of this clause;
(d) Use hazard insurance proceeds from losses to any condominium property (whether to units or to common elements) for other than repair, replacement or reconstruction of such improvements, except as provided by this Declaration or the Act in case of substantial destruction of the condominium.
(e) Alter the provision requiring any leases of units to contain a minimum initial term of thirty (30) days.
If an amendment is nonsubstantial - such as the correction of a technical error or the clarification of a statement - the approval of an eligible mortgage holder may be assumed when such holder fails to submit a response to any written proposal for an amendment within 30 days after notice of the proposal is mailed. an amendment is deemed nonsubstantial, the notice of such proposal shall state that approval will be assumed as aforesaid.
The name of the Condominium is GRANT FARM CONDOMINIUM as shown on the survey, located at Route #9, Kennehunk, Maine.
In-the event of any conflict or discrepancy between this Declaration, the By-Laws and the Plats and Plans, this Declaration shall govern. If any provision of this Declaration, the By-Laws or the rules and regulations be in conflict with any applicable laws, including the Maine Condominium Act, then such laws shall govern and such invalid provision shall he of no force and effect, but the validity of the remainder of this Declaration, the By-Laws and rules and regulations shall not be affected thereby and shall remain in full force and effect as if such invalid provision had not been included.
The captions herein are inserted for convenience and reference and do not limit, alter or define the terms of this Declaration.
Except as provided in Section 17 hereof, all rights, remedies and privileges granted to the Declarant, the Association or a unit owner pursuant to the terms of this Declaration, the By-Laws and the rules and regulations shall be deemed to be cumulative to any other right or remedy under said documents or afforded by law or equity, and may he exercised concurrently, independently or successively. Any forbearance in exercising any right or remedy hereunder or otherwise available by applicable law shall not be a waiver of or, preclude the exercise of any such right or remedy.
IN WITNESS WHEREOF, THE GRANTS FARM PARTNERS, has caused this instrument to be signed and sealed in its partnership name by Maurice R. Gendreau, its Partner, thereunto duly authorized, this 24th day of December, 1986.
THE GRANTS FARM PARTNERS
/s/
Maurice R. Gendreau,
Its Partner Duly Authorized
WITNESS:
STATE OF MAINE YORK, ss.
Personally appeared the above named Maurice R. Gendreau, Partner of THE GRANTS FARM PARTNERS, as aforesaid, and acknowledged the foregoing instrument to be his free act and deed in his said capacity and the free act and deed of said partnership.
Before me,
/s/
Notary Public
MARGARET A. WHITAKER
MY COMMISSION EXPIRES APRIL 6, 1990
APPENDIX I
PARCEL ONE
A certain lot or parcel of land, with the buildings thereon, situated in the Town of Kennebunk, in the County of York and State of Maine, located on the northerly side of the Coles Corner Road, sometimes known as the Wells Road or Western Avenue, which certain lot or parcel of land being more particularly bounded and described as follows:
BEGINNING at an iron pipe driven into the ground on the Northerly side of said Coles Corner Road (State Road #9) at the westerly corner of a lot or parcel of land conveyed by Honor W. Horton (formerly Honor W. Hallowell) to Douglas C. Doane, et al. by deed dated December 15, 1969 and duly recorded in the York County Registry of Deeds in Book 1861, Page 705; thence running North 89° 36’ West by said Coles Corner Road as located and defined by the York County Commissioners July 3, 1928, a distance.of 834.37 feet to a point at remaining land of Carol A. Holmberg; thence turning and running North 6° 50’ East by and along said remaining land of Holmberg 638.61 feet to a point at land now or formerly of David W. Emmons, et al. Trustees; thence turning and running South 67° 57’ 01″ East by and along land of said Emmons 825.69 feet.to an iron pipe driven into the ground for a corner bound at land of said Doane, et al; thence turning and running South 1° 12’ West by and along land of said Doane 330.00 feet to the point of beginning.
Being the same premises conveyed to The Grants Farm Partners by Dan H. Stoddard by deed dated June 26, 1986 and recorded in the York County Registry of Deeds.
PARCEL TWO
An easement over a certain strip or parcel of land in Kennebunk, in the County of York and State of Maine, being bounded and described as follows:
Beginning at a point in the northerly boundary line of property of C Development Corporation and the southerly boundary line of land of Maurice R. Gendreau, said point being further located 455 feet, more or less, westerly of the westerly sideline of Fairway Drive; running thence southerly 104 feet, more or less, to a point; thence turning, making an included angle of 18° and running southwesterly 60 feet, more or less, to a point; thence turning, making an included angle of 30° and running southwesterly 190 feet, more or less, to a point; thence turning, making an included angle of 46° and running southerly 130 feet, more or less, to a point on the northerly sideline of Fairway Drive, said point being located 920 feet, more or less, easterly from the intersection of Sea Road and Fairway Drive; running thence in an easterly direction by and along said Fairway Drive, 65 feet, more or less, to a point; thence turning at a right angle and running northerly 130 feet, more or less, to, a point; thence turning, making an included angle of 45° and running northeasterly 173 feet, more or less, to a point; thence turning, making an included angle of 47°, and running northerly 190 feet, more or less, to a point in the northerly boundary line of land of C Development Corporation and the southerly boundary line of land of Maurice R. Gendreau; thence turning and running in an easterly direction by and along said land of Gendreau 80 feet, more or less, to the point of beginning.
Subject to the right, of C Development Corporation, its successors and assigns, and Maurice R. Gendreau, his heirs and assigns, to use said easement in common with the Grantee and further subject to the right of C Development Corporation, its successors and assigns, and Maurice R. Gendreau, his heirs and assigns, to tie into manhole number 1 and manhole number 2 as shown and delineated on a plan of Grant’s Farm by Water Tower Pines.
And the right to construct and perpetually maintain through, under and across the aforesaid premises conduits or pipelines, with all necessary fixtures and appurtenances for conveying sewage and the right to lay, relay, repair, maintain and remove sewage pipe or pipes upon or under said premises with all necessary fixtures and appurtenances, together with the right at all times to make connection with said conduits or pipelines to land ajdoining the above described premises by means of pipes or services; to trim, cut down and remove bushes to such extent as in the judgment of the Grantee is necessary for any of the above purposes and to enter upon said premises at any time and all times for any of the foregoing purposes; reserving to C. Development Corporation, its successor and assigns, and Maurice R. Gendreau, his heirs and assigns, the use and enjoyment of said premises for such purposes only as in no way interfere with the perpetual use thereof by the Grantee, its successors and assigns, for the purposes abovementioned.
PROVIDED, no that buildings or any kind of permanent structure shall be erected on the above described premises by Maurice R. Gendreau, his heirs and assigns, and that the said Maurice R. Gendreau, his heirs and assigns, shall not remove earth from said premises or place fill thereon, or install any means of drainage which shall cause the removal of earth from said premises without the written permission of the Grantee, its successors-and assigns.
Grantor further grants and conveys to Grantee an easement over the above referenced strip of land for the drainage of storm and surface water, with the tight to install and maintain such pipes, culverts and ditches as are necessary for said drainage purposes.
Being the easement and rights described in a deed from Maurice R. Gendre,aii to The Grants Farm Partners, dated June 26, 1986 and recorded in the York County Registry of Deeds.
CERTIFICATION FOR RECORDING OF
FIRST AMENDMENT TO DECLARATION OF
GRANT FARM CONDOMINIUM
The Undersigned, being the President of the Grant Farm Condominium Associatio certifies that the following was adopted as the First Amendment to the Declaration of Grant Farm Condominium, at a duly called and convened meeting of the members of the Association, on June 22, 2002. The undersigned further certified that the notice provisions of the Declaration of Grant Farm Condominium regarding amendments were complied with The President of the Association is authorized to make this certification by Article 7 Section.2 of the By-Laws of the Association.
This is the first amendment to the Declaration of Condominium of Grant Farm Condominium, which is dated December 24, 1986, and recorded in the York County Registry of Deeds in Book 4145, Page 211.
The following is hereby added as Article 17 Section E (5) (A) to the Declaration of Grant Farm Condominium:
E (5) (A) Working Capital Assessments; Fees for Resale Certificates.
Upon the conveyance for value of a Unit or any interest in a Unit, the
grantee (buyer) of such interest shall be responsible for paying to the Association an amount equal to three (3) times the then current monthly assessment on such Unit. Such payments shall be available to the Association for its purposes, without restriction. Such working capital assessments shall constitute a sum duly levied against the Unit, as that term is used in Article 6, Section 6 of the By-Laws. A working capital assessment shall not be assessed, collected or payable when a Unit or an interest in a Unit is transferred (1) pursuant to voluntary or involuntary lien or encumbrance; (2) foreclosure or deed in lieu of foreclosure; (3) by death of any owner or by deed of distribution from an estate (although a transfer from an estate or trust to a bona fide purchaser for value shall be subject to this assessment); or (4) a transfer between family members, trustee(s) of a trust for the benefit of family members, or entity wholly owned by family members, for no or nominal consideration. In addition„ the Association, shall be entitled to collect a reasonable fee for the preparation of resale certificates, to be charged to the owner at the time the request is made, and such charges shall constitute a sam duly levied against the Unit, as that term is used in Article 6, Section 6 of the By-Laws.
/s/ Judith Marcell, President
Grant Farm Condominium Association
STATE OF MAINE
COUNTY OF YORK, ss.
July 9, 2002
GRANT FARM CONDOMINIUM ASSOCIATION
INSURANCE RESOLUTION
We, the undersigned, being a majority of the Board of Directors for Grant Farm Condominium Association, under the Grant Farm Declaration recorded at the Registry of Deeds in Alfred, Maine in Book 4146, Page 211, do hereby adopt the following policy resolution relative to property insurance claims (covered losses), repairs and deductibles pursuant to the Declaration, Section 16, Insurance and Related Matters as follows:
1.) The Board of Directors shall maintain insurance as required by Section 16 of the Grant Farm Declaration.
2.) The Board of Directors shall obtain the proper insurance policy with a deductible of not more than $2,500.
3.) The Board shall have the right to assess the deductible to unit owners as the Board may, in its sole discretion, determine including, but not limited to, assessing the deductible for a covered loss to unit owners sustaining property damage to their unit(s).
4.) In the event of property damage to a unit or units, the Board shall not be responsible for payment of the deductible but rather said unit owner(s) whose units sustained property damage shall be responsible for the same. The Board may, in its sole discretion, pay for the first $2,500 of damage to the unit.
5.) Unit owners may obtain certificates of insurance for the Master Policy from the insurance agent for the Association. Unit owners will need to provide the insurance agent with information including the unit owner’s name or buyer’s name, the unit number, the mortgage holder’s name and address and the loan number of the mortgage.
6.) Each unit owner is solely responsible to obtain insurance coverage in adequate amounts to cover his or her personal belongings and contents, unit improvements, additions and the Master Policy deductible as well as insuring for liability and all other such coverage’s said unit owner desires and deems necessary to adequately cover them in the event of a loss.
7.) It is recommended that all unit owners obtain endorsements to their homeowner’s policy for various coverage including, but not limited to, “all risk” coverage, loss assessment coverage, Coverage A (dwelling) in adequate amounts, and insurance to provide coverage for the Association’s deductible.
8.) It is recommended that all unit owners review their own insurance coverage with their own insurance agent.
9.) Investor unit owners should also obtain coverage for loss of rent, liability, and all other appropriate coverage. It is recommended that investor unit owners obtain written verification that their tenant’s have appropriate and adequate insurance coverage.
10.) If a unit sustains property damage in amounts less than the Association’s deductible than the unit owner shall be solely responsible for the cost to repair the damage, and the unit owner should immediately notify his or her insurance agent. The Board of Directors will not be responsible for property damage to a unit in an amount less than the deductible, and no unit owner shall file a claim with the master insurance carrier or agent. Notwithstanding the foregoing, the Board of Directors may, in it’s reasonable discretion, pay for the first $2,500 of damage to a unit.
11.) The following steps must be followed when damage occurs in a unit in excess of the Association’s master policy deductible.
A. The unit owner is responsible for reporting unit damage to the Board of Directors, through its Managing Agent immediately upon discovering the damage. The unit owner shall than immediately notify his or her own insurance carrier. The Board of Directors or its appointed representative will inspect the damage to estimate the approximate cost to repair the unit to pre-loss condition. The owner is responsible for the Association’s master policy deductible (for items covered by the master policy) and is also responsible for all damage to the unit, personal property, improvements, loss of rent, etc. NOT COVERED by the master policy. If the damage to areas covered by the master policy is less than the deductible, then the Association does not get involved with the process and the unit owner must resolve the claim with their individual insurance agent and carrier.
B. The following process will be followed for filing a claim against the Master Policy.
i. Damage to the unit must be reported to the Managing Agent within 24 hours of knowledge of the loss. Failure to report claims promptly may result in the claim being denied by the insurance carrier. The Board of Directors will not honor claims that are denied by the carrier because of failure to report the loss in a timely manner. Unit owners should also notify their personal insurance agent at the same time.
ii. The Board of Directors, through it’s Managing Agent, will notify the Association’s insurance agent of the loss. Should immediate repairs need to be made in order to insure either the safety of the occupants or to minimize further damage to the unit or building, the Managing Agent will obtain the necessary authorization for such repairs from the insurance carrier. Final authorization for the commencement of repairs will be the Board of Directors.
iii. The Managing Agent will inspect the unit with an insurance adjustor and the unit owner to determine the scope of work required for repairs. During the damage inspection and bidding process, the unit owner must work closely with both the Managing Agent and insurance adjustor including, but not limited to, making the unit available with reasonable notice for inspection, securing additional bids should the insurance adjustor request it, and promptly responding to any and all requests made by the insurance adjustor or Managing Agent. For purposes of this resolution, reasonable notice shall mean not less than 24 hours. The Managing Agent and/or the unit owner will then secure bids, as directed by the Board, to repair the damage. If the damage is deemed to be less than the master policy deductible, the unit owner need not submit anything further and should deal directly with his or her own insurance agent and carrier.
iv. Neither the Board of Directors nor the Managing Agent is responsible for the timeliness of which insurance claims are paid. If a claim payment is delayed no interest, penalties or other claims will be honored.
v. Any organization (company) or person with whom the Association or any individual unit owner deals with (such as service providers or contractors like painters, carpenters, etc.) will be required to furnish a certificate of insurance prior to commencing repair of the damage. The certificate of insurance must include the minimum requirements below:
vi. In the event of a dispute, the insurance company and unit owner(s), with input from the Board of Directors, shall resolve the dispute through either mediation or arbitration. The final approval of settlement costs is with the mediator and all parties must abide by the decision.
vii. Once it is agreed by all parties as to what the scope of work and amount of the claim will be, permission will be given by the Board of Directors, through its Managing Agent, to commence work.
viii. All invoices for work related to the claim will be submitted to the Managing Agent for payment. Final payment will not be released until:
ix. The Board of Directors shall have no obligation or responsibility to perform or cause to be performed repairs that are the responsibility of the unit owner.
Executed this 20th day of December , 2004.
/s/
JudithMarcell , President