Seller’s Community Disclosure Statement

ABC Homeowners Association

Name of Seller: John Doe Homeowner

Community location: Phoenix, Arizona

Date of Report: April 11, 2017

Prepared By: Homeowner Legal Services, LLC

This Report summarizes important community information you should review before submitting an offer to purchase this home. Once your offer is accepted by the seller you will receive complete copies of all of the community documents from the Homeowners Association. You are encouraged to thoroughly read those documents as well.

SELLER’S COMMUNITY DISCLOSURE STATEMENT

I.  COMMUNITY FEES

·  Dues and assessments in this community are collected quarterly in the amount of $250.

·  When a property is sold the community collects a transfer fee of $400.

II.  COMMUNITY DOCUMENTS

The rules and regulations of the community have been implemented in an effort to keep the community looking good and to help maintain property values.

A.  Summary of the Covenants, Condition and Restrictions (CC&Rs)

·  No Construction or Modification to the homes can be made without the prior written approval of the Design Review Committee.

·  The Design Review Committee can charge a fee for reviewing requests for approval of any Construction or Modification.

·  All residences will be used and devoted exclusively to residential use. No trade or business may be conducted on any Lot. There are a few exceptions. See Section 4.1 for allowed exceptions.

·  No temporary buildings, trailers or other structures are permitted.

·  No rubbish or debris shall be permitted to accumulate on Lot, no odors or loud noises can emit therefrom to cause unsanitary or unsightly conditions

·  Cannot permit any condition which breeds or harbors plant diseases or noxious insects.

·  Installation of satellite dishes and antennas subject to prior written approval of Design Review Committee.

·  Must use approved trash containers. Containers must not be visible by neighbors. May be visible only for the shortest time reasonably necessary on trash collection day.

·  No outside clotheslines

·  No telephone, radio or power lines will be erected unless they are contained in conduits underground

·  No trees or shrubs shall be allowed to overhang on any sidewalk, street, pedestrian from ground level to eight feet without approval of the Design Review Committee.

·  No animals, birds, reptiles, poultry, livestock may be kept on the Lot except a reasonable number of dogs, cats, parakeets or similar birds. All pets must be kept on leash no longer than 6 feet when off of Lot. No animal may make an unreasonable amount of noise. The Board shall conclusively determine in its sole and absolute discretion whether a particular animal is making an unreasonable amount of noise.

·  No machinery or equipment shall be placed or maintained on the property.

·  No signs may be erected, posted or displayed on any Lot if it is visible form a neighboring property without the prior written approval of the Design Review Committee.

·  No motor home, motorcycle, ATV, travel trailer, tent trailer, camper trailer or boat trailer may be parked on the Common Area or on any Lot if it is visible from a neighboring property.

·  No commercial vehicles may be parked on the streets if there is space for it in the garage or drive way of owner.

·  No vehicles may be stored on Lot such as being covered with a car cover or tarp.

·  No owner may install structure, landscaping or fence that obstructs or interferes with direction of water drainage flow.

·  No garage shall be converted to a living space.

·  No HVAC equipment on the roof.

·  No portable basketball hoops. Permanent hoops are allowed if they are approved by Design Review Committee.

·  No jungle gyms or swing sets that are visible from neighboring property without prior written consent of Design Review Committee.

·  Any rental agreement must be in writing and tenant must be subject to terms of community documents. 10 days before lease starts owner must provide the Association with lease term, names of tenants, address and telephone number of owner. Owner must give tenant copy of CC&Rs.

·  All fences, hedges and walls must be maintained by Lot owners.

·  No spotlights, flood lights shall be placed upon any Lot.

·  Within 60 days of becoming an owner, owner must install draperies or window coverings on all windows facing the street.

·  The Association may levy special assessments to pay unbudgeted expenses so long as it is approved by 2/3 votes of owners.

·  Assessments collected quarterly. The failure of the Association to send a bill to owner shall not relieve owner for liability for assessment. But assessment lien shall not be foreclosed on without 30 days’ written notice.

·  Owners and their guests have right to use Common Area.

·  Board may adopt rules regarding Common Areas.

·  Community can cut off Owner’s access to Common Area if more than 15 days delinquent.

·  The affairs of Community are conducted by the Board.

·  The Board may adopt rules and regulations which are just as enforceable as the provisions of the CC&Rs.

·  No officer, director or member of the Design Review Committee will be liable to any owner as long as they acted in good faith.

·  The Owners are automatically Members of the Association when they purchase their home. An Owner ceases to be a member when he no longer owns a home in the Community.

·  If an Owner is more than 15 days delinquent on assessments the Board may suspend the Owner’s community voting rights.

·  Each Owner is obligated to pay dues and assessments for so long as they own property in the community. This is a personal obligation such that unpaid dues and assessments stay with the Owner even after they sell their home.

·  Owners must pay dues and assessments even if they do not use the Common Area.

·  Owner cannot stop paying dues and assessments based on alleged misconduct of Board or Design Review Committee.

·  The Board will prepare an annual budget for the community.

·  The Board may increase the amount of dues and assessments subject to limitations of Arizona law.

·  The Board may issue a Special Assessment that the Owners are obligated to pay. But any special assessments must be approved by 2/3 of the Owners.

·  Assessments will be collected on a quarterly basis.

·  The Association will have a lien on the Owner’s property to unpaid dues and assessments and any fines, penalties, attorney’s fees and court costs incurred in any collection efforts against Owner.

·  The Association lien has priority over most other liens.

·  The Association will maintain the Common Area.

·  The Owners will maintain their Lots. They must mow the grass, pull weeds and replace any dead plants with similar plants.

·  The Owner and his neighbor must maintain the wall between their lots and replace when necessary. Each neighbor will pay ½ of the cost of the wall maintenance or replacement.

·  The trees and plants in the tree-lined area next to street on Owner’s lot are fertilized and pruned by the Association. Owner is responsible for all other maintenance and care.

·  All trees in tree-lined area must be at least 15 gallon and of a type approved by the city.

·  Lot must have installed irrigation within 6 months of certificate of occupancy.

·  The Association has extensive power to collect unpaid assessments. See Article 11 of CC&Rs.

·  The CC&Rs may be amended upon approval of 2/3 vote of the Owners.

B.  Summary of Design Guidelines for Architectural Improvements

·  Any alteration to your home or property must be approved by the Design Review Committee.

·  You must submit your plans for approval before you start the work.

·  You must submit an application form, a plot plan, an elevation plan showing what the finished improvement will look like and the specifications of the work to the Design Review Committee.

·  The Design Review Committee has 45 days to approve or disapprove the plans.

·  The homeowner must start the work within 90 days of approval and diligently pursue it to completion. If the work is not started within 90 days the Design Review Committee may revoke its approval.

·  No patio enclosures, room additions or free-standing garages are allowed.

The following have specific restrictions and requirements and many of these must be approved by the Design Review Committee before the work is done so please review the Design Review Guidelines before doing work on any of the following:

·  Any antennas

·  Any awnings

·  No portable basketball standard or backboard shall be constructed, installed or maintained on any Lot. Permanent basketball standards or backboards may be installed in the front or rear yard, provided they are approved by the Design Review Committee.

·  Any concrete additions or driveway expansions

·  Decorative items such as benches, fountains, water features, light poles and ornamental statuary

·  Any fences or walls

·  Fireplaces, firepits, built-in barbeques

·  Flags and flag poles

·  Gates

·  Gutters, downspouts

·  Heating, Ventilation and air conditioning units

·  House Painting

·  Landscaping

·  Machinery and Equipment

·  Mailboxes

·  Patio Covers

·  Play Structures

·  Pools and Spas

·  Ramadas

·  Security doors

·  Signs

·  Solar panels

·  Storage sheds

·  Window covering material

C.  Summary of Landscape Guidelines

·  All landscape designs and improvements for front yards (and side yard of all corner Lots), must be approved by the Design Review Committee, prior to the beginning of construction or installation.

·  Due to their visibility, Lots with open view fence panels in the rear yard must submit landscape designs and improvements for the rear yard.

·  Landscaping in a rear yard that is fully enclosed with a solid block wall does not need to be submitted.

·  Nothing from the Prohibited Plants and Trees List may be installed in any yard.

·  Rear yard structures, such as swing sets, gazebos, fireplaces, and all other structures that are taller than the block portion of any fence must be reviewed and approved by the Architectural Committee prior to construction or installation.

·  All such structures must be located at least six (6) feet from any party wall and the installation must comply with city drainage and grading requirements.

·  For approval you must submit an application form along with plans prepared by a landscaping professional.

·  The Design Review Committee must approve or disapprove within 45 days of submission.

·  A Recommended Tree List is attached to the Landscaping Guidelines

·  A Recommended Plant List is attached to the Landscaping Guidelines

·  A Recommended Granite List is attached to the Landscaping Guidelines

Page 3 of 6

Prepared for John Doe Homeowner April 11, 2017