Common use of ENCUMBRANCES AND RESTRICTIONS Clause in Contracts

ENCUMBRANCES AND RESTRICTIONS. The Villa is located within a horizontal property regime and governed by the recorded condominium documents pertaining thereto in accordance with the Horizontal Property Act of the State of South Carolina. The Regime has been established for the purpose of operating and maintaining the common elements of the Property. Each Owner of a Villa is a co‑owner of the Regime and is subject to the Regime By‑Laws and Regime regulations thereof. As set forth in the Regime By‑Laws, the vote of each co‑owner is based on the ratio of the value of such co‑owner's villa(s) to the total value of all the villas comprising the Condominium. The affairs of the Regime are conducted by a Board of Directors as provided for in the applicable Regime By‑Laws. It is expressly understood and agreed that the Villa shall be conveyed subject to and Purchaser hereby subscribes to the recorded Master Deed creating the Regime (herein referred to as the “Master Deed”), and the Regime By‑Laws and to the Declaration of Covenants, Restrictions, and Affirmative Obligations applicable to all Class “B” Covenants for Multi‑ Family Residential Areas, declared by the Kiawah Island Company, Inc. (predecessor of Kiawah Resort Associates, LP), dated February 19, 1976, and recorded in the ROD Office, in Book T108, at page 340 and any recorded additions thereto made on or before the date of this Contract. The Villa shall also be conveyed subject to the recorded plat and plan of the Property. Purchaser hereby agrees to abide by the Covenants as a matter of contractual agreement with Kiawah Resort Associates, LP under this Contract, in addition to any and all compliances required as a matter of real property law. It is expressly understood and agreed by Purchaser that, by joining in and subscribing to the provisions of the Master Deed and the Regime By‑Laws, Purchaser shall be liable for the payment, as set forth in the aforesaid documents, of a proportionate share of periodic Regime Assessments. In addition, Purchaser shall, by owning the Villa, be liable for the payment of periodic assessments and service charges levied by public authorities, including, but not limited to, water and sewer assessments and service charges levied by Kiawah Island Utility, Inc. or any duly authorized Public Service District or other similar body. Fire and extended coverage insurance on the exterior of the Villa is provided by the Regime. If this Contract includes the sale of furnishings and equipment, Seller shall maintain, until the date of Closing, adequate insurance coverage on the furnishings and equipment with a reputable insurance company.

ENCUMBRANCES AND RESTRICTIONS. The Villa is located within a horizontal property regime and governed by the recorded condominium documents pertaining thereto in accordance with the Horizontal Property Act of the State of South Carolina. The Regime has been established for the purpose of operating and maintaining the common elements of the Property. Each Owner of a Villa is a co‑owner of the Regime and is subject to the Regime By‑Laws and Regime regulations thereof. As set forth in the Regime By‑Laws, the vote of each co‑owner is based on the ratio of the value of such co‑owner's ’s villa(s) to the total value of all the villas comprising the Condominium. The affairs of the Regime are conducted by a Board of Directors as provided for in the applicable Regime By‑Laws. It is expressly understood and agreed that the Villa shall be conveyed subject to and the Purchaser hereby subscribes to the recorded Master Deed creating the Regime (herein referred to as the “Master Deed”), and the Regime By‑Laws and to the Declaration of Covenants, Restrictions, and Affirmative Obligations applicable to all Class “B” Covenants for Multi‑ Family Residential Areas, declared by the Kiawah Island Company, Inc. (predecessor of Kiawah Resort Associates, LP), dated February 19, 1976, and recorded in the ROD Office, in Book T108, at page 340 and any recorded additions thereto made on or before the date of this Contract. The Villa shall also be conveyed subject to the recorded plat and plan of the Property. Purchaser hereby agrees to abide by the Covenants as a matter of contractual agreement with Kiawah Resort Associates, LP under this Contract, in addition to any and all compliances required as a matter of real property law. It is expressly understood and agreed by Purchaser that, by joining in and subscribing to the provisions of the Master Deed and the Regime By‑Laws, Purchaser shall be liable for the payment, as set forth in the aforesaid documents, of a proportionate share of periodic Regime Assessments. In addition, Purchaser shall, by owning the Villa, be liable for the payment of periodic assessments and service charges levied by public authorities, including, but not limited to, water and sewer assessments and service charges levied by Kiawah Island Utility, Inc. or any duly authorized Public Service District or other similar body. Fire and extended coverage insurance on the exterior of the Villa is provided by the Regime. If this Contract includes the sale of furnishings and equipment, Seller shall maintain, until the date of Closing, adequate insurance coverage on the furnishings and equipment with a reputable insurance company.