Article Second. The Governance and Administration of the CONDOMINIUM is the Assembly of OWNERS (Owner s Association), and the administrator.
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1 REGULATIONS OF THE GATED COMMUNITY COSTA DEL SOL Article First: These regulations will be mandatory for the OWNERS, Co-Owners, or any owner of rights on the real estate included in the condominium, as well to any person leasing or subleasing or occupying a unit by any legal reason, and they will be subject to the applicable LAW, the original deed and these regulations. Article Second. The Governance and Administration of the CONDOMINIUM is the Assembly of OWNERS (Owner s Association), and the administrator. Article third: the Assembly of OWNERS will be formed by all the OWNERS of the UNITS, or their credited representatives, according to article fourth. In each session, a President and Secretary of the Assembly will be appointed. The first will lead the meeting and second will take minutes of the session. Article fourth: When one unit belongs to different owners in co-ownership or there is a rightful possessor, all must be represented by the same person in the Assemblies, whom will be elected by the majority of votes of the co owners of the unit. Article fifth: it will be possible to represent the OWNERS or co owners through a letter power of attorney certified by a public notary, to be presented at the celebration of the Assembly. Article Sixth: The Assembly of OWNERS will: A) Review and approve, or not, the annual budget for common maintenance and administration expenses of the CONDOMINIUM presented by the Administration, budget that will determine in detail the probable expenses and the income necessary to cover those. If the Assembly rejects the budget, the last approved one will continue to be applied until new approval or modifications of that one. B) Calculate and fix the amount of the MAINTAINANCE FEE that the OWNERS or co-owners of the UNITS must pay, to cover common expenses, common insurance, miscellaneous and common taxes. C) Appoint and remove the Administration, through a vote of the majority of OWNERS present at the Assembly. D) Fix the fees of the Administration. E) Approve the Administration report and the accounting presented by it. F) Approve repairs and improvements to the common areas. G) Approve the enlargement of common areas, or the acquisition of common items. H) Resolve any other issue given by law, and in general, decide on all the matters of common interest, taking the best measures for the best use of the CONDOMINIUM and services. Article seventh: the Assembly will meet at least once a year on the first three months of each year. The Administration could convoke an Extraordinary Assembly when deemed necessary or if it is requested in writing by at least one of the owners. Article Eight: To call for a General Assembly of OWNERS, the Administrator will send a letter with a detailed agenda at least eight working days before the Assembly. Article Ninth: The quorum of the Assembly of OWNERS will be in first call, two thirds of the total units. If not reached that quorum, the Assembly will meet in second call with any number of OWNERS that assist. Between first or second call there has to be at least one hour difference. Article Tenth: the agreements will be taken by simple majority of votes present, exception made of the cases foresee by law and the following: A) The unanimous agreement of ALL THE OWNERS is necessary to: a- modify the destiny of the buildings. b- Modify area of the UNITS in relation to the total area of the CONDOMINIUM, or the common area. c-to
2 abandon the status of gated community (condominium). d- To put a lien or mortgage on the whole CONDOMINIUM. B) Two thirds of the votes of ALL THE OWNERS is needed to: a-change the use of one UNIT. b-buy or sell the assets of the condominium c- Lease common areas, d- approve the renovation, partial or total of the CONDOMINIUM or a unit. e- Determine the hours to use the common areas as pools, courts, and others). f- To change clauses of this regulations Article Eleven: Each unit will have one individual vote. Article Twelve: Minutes of the meeting will be prepared, the agreements written, and it will be signed by the President, the Secretary, and any assistant that wishes to sign. Article thirteen. The Administration of the CONDOMINIUM could be a person or a corporation, and it will be appointed for one year. Could be re-elected. If it is a corporation, its president or manager or person with power of attorney will be the representative to all effect. It s duties are: A) Be in charge of the administration, care and security of the common goods, the attention and operation of the facilities and general services, all acts of administration and conservation of the CONDOMINIUM, with the powers of article one thousand two hundred and fifty two of the Civil Code. B) Ensure the execution of the agreements taken by the Assembly of OWNERS; to apply these regulations and those of the law. The measures taken to fulfil its duties will be mandatory for the owners, unless the General Assembly revokes it. C) To appoint or fire personnel for the CONDOMINIUM. D) To collect the maintenance fee for common expenses, insurance, reserve fund, miscellaneous, taxes, fines and others from each UNIT. E) Take care and keep the order in the CONDOMINIUM and be responsible for the following of moral rules and good habits, so the tranquillity of the owners is not disturbed F) Take action, including legal, against people that disturb the order. G) Certify debts of the owners for maintenance fee and others. Supported by a Public accountant following Article twenty of the law, this becomes legal mortgage. H. Hire external services needed by the condominium. H) Order the repairs necessary of public services and utilities. I) Deposit on the bank accounts any income received, and pay from that account all the expenses for the administration. Article Fourteen: The OWNERS and co-owners can lien or lease their rights. Whoever acquires those rights, is forced to respect the condominium, its regulations, and all agreements taken by the Assembly of OWNERS, or the Administration acting in fulfilment of its mandate. Article Fifteen: Owners or co-owners have to proportionally pay for the administration and maintenance of the CONDOMINIUM, common expenses, insurance, taxes, water and other in the budget. The unpaid fees generate legal interest on balances, at four points over the basic lending rate of Banco de Costa Rica at six months. The maintenance fee is payable monthly in advance. Article Sixteen: The OWNERS or co-owners can hire services for exclusive use, if they do not interfere with the other owners or make use of common services in detriment of the rights of the others. The payment for utilities of each unit will be responsibility of each individual owner. The UNITS are houses, and cannot be used for commerce or for purposes against the moral and good habits. The owner has to maintain the esthetics and functionality of the unit in the same way as it was delivered. Article Seventeen: The OWNER must execute on his property, all urgent repairs which omission could damage other units or produce problems or difficulties to neighboring units. If they don t do it, the owners will be responsible for the damages caused to the other properties.
3 Article Eighteen: New construction in the unit is not allowed without permission, as well as building stairs, walls or similar, do unauthorized excavations or digging holes. Owners must also refrain from parking vehicles of over three and a half tons, roulettes, containers or heavy equipment. To do modifications or constructions on the UNIT, the owner must notify the Administration, which must approve or reject the petition within 30 days in writing, if there is no answer within 30 days, the request is automatically approved. A professional engineer or architect must approve the construction and supervise that it does not affect structures, the approved facades, areas of circulation, accesses and other areas of the CONDOMINIUM. Any proposed modification must follow the rules of urbanism and uniformity of concept and esthetics of the CONDOMINIUM. Article Nineteen: the owners must refrain from activities that prevent the efficient use of the common facilities and utilities, even on their properties. They must facilitate the Administration access to their UNITS for the normal maintenance or urgent reparations required for the good functioning of the CONDOMINIUM. Article Twenty: The owners cannot change the facades once the houses are built. These facades must correspond to the ones approved by the developer during construction period, or by the Assembly, once it has taken over the condominium. Article Twenty First: This Condominium is a vacation complex, so, it is understood the owners are authorized to rent their houses for periods that can be short, medium or long term, with no further limitations than those established by law and these regulations. The users or renters have to obey these regulations. The owner, or the rental management service hired by the owner if applicable, is responsible to oversee the fulfilment of this disposition. Article Twenty Second: Trash must not be thrown in back yards, common area, or stored in quantities in the UNITS or in front without a garbage container. It cannot be burned inside or outside a unit, or in any way, block the transit on the condominium. It is not allowed to store explosive, flammable or toxic materials, or those that can be a hazard to the buildings or the lives; or to store materials that emanate smoke, bad odor, or any disturbance to people. Article Twenty Third: The CONDOMINIUM will allow domestic animals following these rules: A- The pet is not raised for commercial purposes. B- The pet does not cause problems to neighbors. It must have all the vaccines up to date. It cannot wander freely in the premises. C-reptiles or other exotic animals are forbidden, as well as endangered species. D- Each owner will be responsible of cleaning the residues left by the pets. E- Violations to these rules allow the Administrator to request the removal of the pet from the condominium, and further sanctions if applicable. Article Twenty Fourth: The OWNER must allow the execution of works for the reparation and maintenance of common elements. Article Twenty Fifth: The new OWNER or lessee has to accept the rules contained in these regulations. Article Twenty Sixth: the OWNERS and renters must avoid causing problems to others due to noise, vibrations or excessive light. Article Twenty Seven: When an OWNER needs a common area for a personal activity, he must obtain in advance the authorization of the Administration, who will seek a proportional use of the facilities among the owners. On the tennis court there will be a
4 weekly record. Any person can reserve a specific hour and day of the week in advance. If the person wants to play, and the court is not reserved, can do it with no previous reservation. Each couple of players can use the court for a maximum of one hour, if there are other people waiting to play. Unless it is previously authorized, no tournaments with external players could be held in the court. The party s facility has to be reserved at least a week in advance. The parties cannot be excessively noisy. Sundays and weekdays, the use cannot extend after ten thirty at night. Fridays and Saturdays, the use can extend to twelve thirty at night, providing it causes no disturbances to other neighbors. Article Twenty eight: When the negligence or actions of an OWNER or an authorized occupant, cause damages to the common areas or other units, the owner will be charged for it. Article Twenty Nine: Along with the unit, the OWNER acquires: a- A right over the common elements. b- The right to use the common elements as indicated in these regulations. c- Membership to the Assembly of OWNERS with the right to one vote, and the obligations determined by these regulations. Article Thirty: The right to use the common elements is an essential part of the ownership of the property, and cannot be separated from it. This right cannot be sold or transfer separately of the unit. Article Thirty First: To facilitate the use of the common facilities, as well as avoiding the loss of value of the units, the use of the units are subjected to the following rules: First. The UNITS will be used for housing (by the owner, or a lessee), and could be inhabited as follows: The unit could be occupied by (and/or family members): a- The OWNER; b-people authorized by the OWNER; c-people authorized by a lease contract (short, medium or long term). In case a unit is used for short term leases, such as rental management condo-hotel type, this situation must be communicated to the Assembly only once. Second: Under a lease contract, the lessee and its family, and temporary guests, are authorized to use the unit. Third. The common facilities must be used only for those purposes for which they were designed. Article Thirty Two: All lease contracts have to be in writing and include the following: a- The lessee promise to follow these regulations and the applicable condominium law. b- The Assembly of OWNERS could collect part of the rent to pay for debts of the owner to the condo association. All these rules apply for short term leases, and a brief copy of these regulations have to be provided to every lessee. Article Thirty third: All the OWNERS, occupants and authorized visitors must follow these regulations, all the new ones taken in the future following these regulations, and the applicable laws. The Assembly has the right to take the measures dictated by law, as well as the following: First: The Owners or people authorized by him, will be responsible for the damages, the reparation and or reposition necessary, of an act due to personal negligence, or negligence of a member of his family, visitors, employees, or renters. Second: If the OWNERS or occupants will not maintain the property accordingly with these regulations and the applicable law, or make alterations or modifications against these regulations, the Assembly can establish sanctions and use legal means to correct the violations. All expenses generated by any legal process will be charged to the OWNER, including but not limited to legal fees and cost of trial. Article Thirty fourth: The lack of enforcement of the rights of the assembly cannot be interpreted as the forfeiting of the said rights.
5 Article Thirty Five: According to these regulations, besides maintenance fee, insurance, and others, a reserve fund for unforeseeable expenses must be created. It will be determined by the Assembly and collected by the Administration. An extraordinary fee could also be established to attend urgent needs not included in the budget. Article Thirty six: the Administration will open in the municipality individual accounts for the payment of property taxes. Owners must pay their taxes up to date. Article Thirty seven: In the budget, it will be established the exact amounts to be paid for salaries, general expenses, social security and others approved by the Assembly of OWNERS. Article Thirty eight: The annual budget will establish a fee to each owner. In case the fee is not sufficient to cover all expenses, the Assembly will take the necessary steps to solve the problem. Article Thirty Nine: Is mandatory to subscribe insurance for: a-fire on common property. b- Labor risks on employees working directly for the CONDOMINIUM. c- Any other insurance that the Assembly deems necessary. Article Forty: the offences of an owner or authorized occupant will be sanctioned according to the law and these regulations. Article forty one: When an owner or authorized occupant commits serious or continuous infractions to these regulations, the Administration will take the lawful measures necessary. Previously, the owner will be informed, so he can take measures itself. If not, the administration will proceed. Article forty two: If an OWNER infringes the prohibitions and limitations of the law or these regulations or those set by the Assembly of OWNERS, the following sanctions could be imposed, after the due process is respected: a-prevention in writing. b- Sanction or fine. Article forty three: This area is regulated expressly by the Law. Article Forty Fourth: the UNITS will bear the encumbrances necessary for the installation of electricity, water, cable TV, communications, security and drainage that are common to the CONDOMINIUM. The owners agree to not do anything, inside or outside their property, to interfere or affect such utilities, as well as allow access to the people authorized by the administrator to do necessary inspections and reparations. The said inspections and reparations will not interfere, except for force majeur, with the use and enjoyment of the property and must be notified to the owner at least the day before.
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