MASTER DEED FOR WINDING CREEK CONDOMINIUM

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1 MASTER DEED FOR WINDING CREEK CONDOMINIUM as required by the Michigan Condominium Act, MCLA et seq., MSA 26.50(101) et seq. Wayne County Condominium Subdivision Plan No. This master deed is made and signed on November 17, 1996, by RALI Development, L.L.C., a Michigan limited liability company (the "developer"), whose principal office is Jefferson, Suite 102, St. Clair Shores, Michigan The developer is constructing a residential site condominium project to be known as Winding Creek Condominium, pursuant to the plans approved by Huron Township, on a parcel of land described in Article II of this master deed. The developer desires, by recording this master deed together with the attached condominium bylaws and the condominium subdivision plan, both of which are incorporated by reference and made a part of this document, to establish this real property and the improvements and appurtenances now and in the future located on it as a condominium project under the provisions of the Michigan Condominium Act. By recording this document, the developer establishes Winding Creek Condominium as a condominium project under the act and declares that the project shall be held, conveyed, hypothecated, encumbered, leased, rented, occupied, improved, and used subject to the act and to the covenants, conditions, restrictions, uses, limitations and affirmative obligations stated in this master deed, all of which shall run with the land and burden and benefit the developer, its successors and assigns, any persons acquiring or owning an interest in the real property, and their grantees, successors, heirs, executors, administrators, and assigns. In furtherance of the establishment of the project, it is provided as follows:

2 ARTICLE I TITLE AND NATURE The project shall be known as Winding Creek Condominium, Wayne County Condominium Subdivision Plan No.. The project is established in accordance with the act. The units contained in the project, including the number, boundaries, dimensions and area of each, are set forth completely in the attached condominium subdivision plan. Each unit is capable of individual utilization on account of having its own entrance and exit to and from the unit and to and from a public road and the general common elements of the project. Each co-owner in the project shall have exclusive right to his or her unit and shall have undivided and inseparable rights to share with other co-owners the general common elements of the project. ARTICLE II LEGAL DESCRIPTION The land on which the project is situated and which is submitted for condominium ownership pursuant to the act, is described as follows: Land in Huron Township, Wayne County, Michigan, described as: Part of the Northeast 1/4 of Section 29, Town 4 South, Range 9 East, Huron Township, Wayne County, Michigan, described as commencing at the East 1/4 corner of said Section 29; thence South 89 29' 27" West feet along the East-West 1/4 line of Section 29; thence North 00 53' 43" West feet along the centerline of the Duff & Winnie Drain to the point of beginning; thence North 00 53' 43" West feet along said centerline; thence North 18 06' 14" West feet along said centerline; thence North 41 38' 01" West feet along said centerline; thence North 86 51' 27" West feet; thence North 01 45' 17" East feet; thence North 52 20' 53" West feet; thence North 67 24' 34" East feet; thence North 24 38' 38" East feet; thence North 65 21' 22" West feet; thence North 24 38' 38" East feet; thence North 31 43' 45" West feet; thence North 89 12' 05" East feet to the west right-of-way line of Bell Road; thence South 01 08' 06" East feet along said right-of-way line of Bell Road; thence South 89 29' 27" West feet along the north right-of-way line of Willow Road to the point of beginning. Containing acres. 2

3 ARTICLE III DEFINITIONS Certain terms are used not only in this master deed but also in other documents for the condominium, such as the articles of incorporation; the association bylaws; the rules and regulations of the Winding Creek Condominium Association; and deeds, mortgages, liens, land contracts, easements, and other documents affecting interests in the project. As used in such documents, the following definitions apply unless the context otherwise requires: 1. The act means the Michigan Condominium Act, MCLA et seq., MSA 26.50(101) et seq., as amended. 2. The arbitration association means the American Arbitration Association or its successor. 3. Area of future development means the land legally described in Article VII in which the project may be expanded. 4. The association of co-owners or the association means Winding Creek Condominium Association, the nonprofit corporation organized under Michigan law of which all co-owners must be members. 5. Common elements, if used without modification, means the part of the project other than the condominium units, including all general and limited common elements described in Article IV. 6. Condominium bylaws or association bylaws or bylaws means exhibit A, which is the bylaws stating the substantive rights and obligations of the co-owners. The bylaws shall also constitute the corporate bylaws of the association as provided under the Michigan Nonprofit Corporation Act. 7. Condominium documents means and includes this master deed and all its exhibits recorded pursuant to the act, the articles of incorporation, bylaws and rules and regulations, if any, of the association, and any other documents referred to in this document that affect the rights and obligations of a co-owner in the condominium. 8. Condominium premises or premises means and includes the land described in Article II, and, if the project is expanded, the applicable area of future development, all improvements and structures thereon, and all easements, if any, rights and appurtenances belonging to the project, either presently existing or hereafter coming into existence. 9. The condominium subdivision plan means exhibit B, which is the site drawing, the 3

4 survey, and other drawings depicting the existing and proposed structures and improvements, including their locations on the land. 10. Condominium unit or unit means that part of the project designed and intended for separate ownership and use, as described in this master deed, as such part may be described in Article V and in the condominium subdivision plan, and shall have the same meaning as the term "condominium unit" as defined in the act. 11. Consolidating master deed means the final amended master deed which shall describe the project as a completed condominium project and shall reflect the project as finally configured and surveyed. 12. Co-owner or owner means a person, a firm, a corporation, a partnership, a limited liability company, an association, a trust, or another legal entity or any combination who owns a condominium unit in the project, including a vendee of a land contract of which the purchase is not in default. Owner is synonymous with co-owner. 13. The developer means RALI Development, L.L.C., a Michigan limited liability company, which has made and signed this master deed, as well as its successors and assigns. Both successors and assigns shall always be deemed to be included within the term "developer" whenever, however and wherever such terms are used in the condominium documents. 14. Development and sales period, for the purposes of the condominium documents and the rights reserved to developer under the condominium documents, shall be deemed to continue for so long as developer continues to own any unit in the project. 15. General common elements means those common elements of the project described in Article IV(1), which are for the use and enjoyment of all co-owners, subject to such charges as may be assessed to defray the operation costs. 16. Limited common elements means those common elements of the project described in Article IV(3), which are reserved for the exclusive use of the co-owners of a specified unit or units. 17. The master deed means this instrument as well as its exhibits and amendments, by which the project is submitted for condominium ownership. 4

5 18. Percentage of value means the percentage assigned to each unit by this master deed, which determines the value of a co-owner's vote at association meetings when voting by value or by number and value and the proportionate share of each co-owner in the common elements of the project. 19. The project or the condominium or the condominium project means Winding Creek Condominium, a condominium development established in conformity with the act. If the project is expanded, as provided in Article VII, the project shall include all or the applicable part of the area of future expansion. 20. The township means Huron Township. 21. The transitional control date means the date when a board of directors for the association takes office pursuant to an election in which the votes that may be cast by eligible co-owners unaffiliated with the developer exceed the votes that may be cast by the developer. Any additional term which is specifically defined in the act, when used in the condominium documents, shall have the meaning assigned to such term in the act. Whenever a reference is made in this document to the singular, a reference shall also be included to the plural if appropriate, and vice versa; similarly, whenever a reference is made to one gender, the same shall include a reference to any and all genders where the same would be appropriate. ARTICLE IV COMMON ELEMENTS 1. The general common elements, as depicted in the condominium subdivision plan, are: a. the land described in Article II, including easement interests of the condominium in the land provided to it for ingress and egress, if any, not identified as units or limited common elements; b. the roads and cul-de-sacs in the project; c. all easements, if any, which benefit the condominium premises as a whole; d. the electrical transmission mains throughout the project, up to the point of lateral connections for unit service; 5

6 e. the telephone system throughout the project up to the point of lateral connections for unit service; f. the gas distribution system throughout the project up to the point of lateral connections for unit service; g. the telecommunications system, if and when any may be installed, up to the point of lateral connections for unit service; h. the storm water drainage system including drainage easements, retention basins, and areas designated as such on the condominium subdivision plan; I. the water and sanitary sewer system throughout the project up to the point of lateral connection for unit service; j. all common fencing and signage, wherever located, as may be installed from time to time by the developer or the association; and k. all other common elements of the project not designated in this document as limited common elements that are not enclosed within the boundaries of a condominium unit or within a public road rightof-way, and that are intended for common use or are necessary for the existence, upkeep, or safety of the project. 2. Developer and the association reserve the right to dedicate to the public or to convey to a public entity all or any portion of the common elements, including, but not limited to the roads and utilities located under the roads or within the road right-of-ways, and, in such event, the land so dedicated or conveyed shall no longer be part of the common elements of the project. 3. The limited common elements, as depicted in the condominium subdivision plan, are: a. each water well and sanitary disposal system, if any, within individual units is limited in use to the unit served thereby; and b. each electrical transmission system, gas distribution 6

7 system, water and sanitary sewer system, and all other utility systems from the point of lateral connection is limited in use to the unit served thereby. 7

8 If any of the limited common elements described in this provision have not been assigned in the condominium subdivision plan, the developer reserves the right to designate each such element as a limited common element appurtenant to a particular unit by subsequent amendments to this master deed. The co-owners and mortgagees of condominium units and all other parties interested in the project shall be deemed to have irrevocably and unanimously consented to such amendments and irrevocably appoint the developer or its successors as agent and attorney to make any such amendments to the master deed. ARTICLE V DESCRIPTIONS AND PERCENTAGES OF VALUE OF CONDOMINIUM UNITS 1. Each condominium unit in the project is described in this paragraph with reference to the condominium subdivision plan as prepared by Arpee/Donnan, Inc., consulting engineers and surveyors, and attached as Exhibit B. Detailed architectural plans and specifications for the project have been filed with the township. There are 36 units in the project established by this master deed. Each unit shall consist of the land located within unit boundaries as shown on Exhibit B and delineated with heavy outlines together with all appurtenances thereto. 2. The percentage of value assigned to each of the 36 units is equal. The determination that percentages of value should be equal was made after reviewing the comparative characteristics of the units in the project (such as market value, size, location, and allocable expenses of maintenance), and concluding that there are not material differences among the units insofar as the allocation of percentages of value is concerned. 3. The percentage of value assigned to each unit shall be determinative of each co-owner's respective share of the general common elements of the condominium project, the proportionate share of each respective co-owner in the proceeds and expenses of administration and the value of such co-owner's vote at meetings of the association. 4. All structures and improvements now or hereafter located within the boundaries of a unit shall be owned in their entirety by the co-owner of the unit within which they are located and shall not, unless otherwise expressly provided in the condominium documents, constitute common elements. This project is a site condominium project, and the developer does not intend to and is not obligated to install any structures whatsoever within the units or their appurtenant limited common elements. 8

9 ARTICLE VI RESPONSIBILITIES FOR MAINTENANCE, REPAIR AND REPLACEMENT 1. The responsibility for and the costs of maintaining, decorating, repairing, and replacing each unit and its yard area appurtenant to each unit extending to the edge of the roadway shall be borne by the co-owner of the unit which is served thereby. Each co-owner shall also be responsible for maintenance of any storm drainage ditches lying within such coowner's unit or yard area as may be prescribed by the association or by any public agency having jurisdiction. 2. The exterior appearance of the dwellings within the units and the yard area within each unit, to the extent visible from any other dwelling in the project or common element in the project, shall be subject at all times to the bylaws, the approval of the association, and reasonable aesthetic and maintenance standards prescribed by the association in duly adopted rules and regulations. Failure of any co-owner to adhere to the maintenance and aesthetic standards shall entitle the association to take whatever action is necessary to bring the elements up to required standards, including entry upon the unit to take the necessary action, and charge the cost to the owner responsible for cleaning, decorating, and maintaining the element. 3. All costs of installation and operation of electricity and natural gas and any other utility services shall be borne by the co-owner of the unit to which such services are furnished. 4. All costs of initial installation and subsequent maintenance, repair and replacement of the well and sanitary disposal system located within each unit, if any, and of all utilities from the point of lateral connection for unit service shall be separately borne by the co-owners of the units to which they are respectively appurtenant. 5. The costs of maintenance, repair and replacement of all general common elements shall be borne by the association, subject to any provisions of the bylaws expressly to the contrary. Additional maintenance assessments may be levied for individual units requiring expenditures by the association. Standards for maintenance may be established by the association through its board of directors. The association shall not be responsible, in the first instance, for performing any maintenance, repair or replacement with respect to residences and their appurtenances located within the condominium units or within the limited common elements appurtenant thereto. 6. Some or all of the utility lines, systems (including mains and service leads) and equipment and any telecommunications, described above may be owned by the local public authority or by the company that is providing the pertinent service. Accordingly, such utility lines, systems and equipment, and any telecommunications, shall be general common elements only to the extent of the co-owners' interest therein, if any, and developer makes no warranty whatever with respect to the nature or extent of such interest, if any. The extent 9

10 of the developer's responsibility will be to see to it that telephone, electric and natural gas mains are existing or installed within reasonable proximity to, but not within, the units. Each co-owner will be entirely responsible for arranging for and paying all costs in connection with extension of such utilities by laterals from the mains to any structures and fixtures located within the units and their respective limited common element yard areas. 7. No co-owner shall use his unit or the common elements in any manner inconsistent with the purposes of the project or in any manner which will interfere with or impair the rights of any other co-owner in the use and enjoyment of his unit or the common elements. No limited common element may be modified or its use enlarged or diminished by the association without the written consent of the co-owner to whose unit the same is appurtenant. No co-owner shall fill, dredge or otherwise disturb any portion of any wetland, floodplain or drainage area depicted on the condominium subdivision plan without receiving prior written approval from the association and without obtaining any permits required by municipal or other public authorities having jurisdiction over wetlands and/or flood plains. 8. The general common elements of the project including, without limitation, the private roads, parking area, fencing, retention basins, and landscaping as shown on the condominium subdivision plan or as installed by the developer or the association, will be maintained, repaired and replaced as necessary by the association. It is the association's responsibility to inspect and to perform preventative maintenance of the general common elements on a regular basis in order to maximize their useful life and to minimize repair and replacement costs. 9. The association shall generally administer and maintain the project. Any action required of or permitted to the association may be carried out by its board of directors unless it is specifically reserved to its members by the condominium documents or Michigan law. ARTICLE VII EXPANSION OR CONTRACTION OF CONDOMINIUM 1. The condominium project established pursuant to the initial master deed of the project and consisting of 36 units is intended to be the first stage of an expandable condominium under the act which may, at developer's election, contain in its entirety a maximum of 110 units. Additional units, if any, will be established upon all or some portion or portions of the area of future development, which is described as follows: Part of the Northeast 1/4 of Section 29 and part of the Southeast 1/4 of Section 20, T. 4 S., R. 9 E., Huron Township, Wayne County, Michigan described as follows: 10

11 Commencing at the East 1/4 corner of said Section 29; thence S 89 29' 27" W feet along the East-West 1/4 line of said Section 29 to the centerline of Duff & Winnie Drain; thence N 00 53' 43" W feet along said centerline to the point of beginning; thence N 00 53' 43" W feet along said centerline; thence N 18 06' 14" W feet along said centerline; thence N 41 38' 01" W feet along said centerline; thence leaving said centerline, N 86 51' 27" W feet; thence S 01 45' 17" W feet; thence S 89 29' 27" W feet; thence N 64 05' 32" W feet; thence N 01 07' 20" W feet; thence S 89 29' 30" W feet; thence N 01 21' 35" W feet; thence N 88 55' 47" E feet to the centerline of Duff & Winnie Drain; thence N 21 27' 13" W feet along said centerline; thence N 36 48' 39" W feet along said centerline; thence N 27 41' 29" W feet along said centerline; thence N 24 55' 28" W feet along said centerline; thence N 33 59' 47" W feet along said centerline; thence S 88 04' 10" W feet along said centerline to the West line of Rust Road; thence N 01 21' 13" W feet along said West line to the line between Sections 20 and 29; thence N 89 05' 32" E feet along said section line; thence N 01 24' 41" W feet; thence N 89 05' 26" E feet; thence S 01 05' 09" E feet to the line between sections 20 and 29; thence S 00 46' 35" E feet; thence N 89 12' 05" E feet to the East line of Bell Road; thence S 01 08' 06" E along said West line to the North line of Willow Road; thence S 89 29' 27" W feet along said North line to the point of beginning; containing acres; excluding, that portion of the land described above which is included within the project and legally described in Article II. 2. Any other provisions of this master deed notwithstanding the number of units in the project may, at the sole option of the developer, from time to time, within the period ending no later than six (6) years from the date of recording this master deed, be increased by the addition of this condominium of any portion of the area of future development and the establishment of residential units on the area of future development. The location, nature, appearance, design and structural components of all such additional units and dwellings as may be constructed thereon shall be determined by the developer in its sole discretion subject only to approval by the township. All such improvements shall be reasonably compatible with the existing improvements in the project as determined by the developer in its sole discretion. No unit shall be created within the area of future development that is not restricted exclusively to residential use. 11

12 3. The developer and its successors specifically reserve the right to elect, within six years after the initial recording of the master deed for the project, to contract the project by withdrawing all or part of the land described in Article II by an amendment or a series of amendments to the master deed, without the consent of any co-owner, mortgagee, or other party. However, no unit that has been constructed and sold may be withdrawn without the consent of the owner and the mortgagee of the unit. 4. Nothing contained in this master deed shall in any way obligate the developer to enlarge the condominium project beyond the phase established by this master deed and the developer may, in its discretion, establish all or a portion of the area of future development as a rental development, a separate condominium project (or projects) or any other form of development. There are no restrictions on the election of the developer to expand or contract the project other than as explicitly set forth in this master deed. Similarly, there are no limitations as to what portion of the area of future development may be added to the project. Portions of the area of future development may be added to the project at different times, and there are no restrictions as to the order of adding portions of the area of future development. Similarly, no restrictions or limitations on an election to contract the project exist regarding what land may be withdrawn, when or in what order land may be withdrawn, or how many units or common elements may be withdrawn. 5. Such expansion or contraction in size of this condominium project shall be given effect by appropriate amendments to this master deed in the manner provided by law, which amendments shall be prepared by and at the discretion of the developer or its successors and in which the percentages of value set forth in Article V hereof shall be proportionately readjusted in order to preserve a total value of 100% for the entire project resulting from such amendments to this master deed. Such readjustments shall continue to maintain equality in percentages of value among the units. 6. Such amendments to the master deed shall also contain such further definitions and redefinitions of general or limited common elements as may be necessary to adequately describe, serve and provide access or other amenities to the units in the condominium project as so expanded or contracted. In connection with any such amendments, developer shall have the right to change the nature of any common element previously included in the project for any purposes reasonably necessary to achieve the purposes of this Article, including, but not limited to, the connection of roadways that may be located on, or planned for the area of future development and to provide access to any unit that is located on, or planned for the area of future development from the roadways located in the project. 7. A consolidating master deed shall, if necessary, be recorded pursuant to the act when the project is finally concluded, as determined by the developer, in order to incorporate into one set of instruments all successive stages or modifications of development. The consolidating master deed, if and when recorded, shall supersede the previously recorded 12

13 master deed and all amendments to the master deed. In the event the units and common elements in the condominium are constructed in substantial conformance with the proposed condominium subdivision plan attached as Exhibit B, the developer may, in lieu of recording a consolidating master deed, file a certificate in the office of the Wayne County Register of Deeds conforming that the units and common elements "as built" are in substantial conformity with the proposed condominium subdivision plan and that no consolidating master deed need be recorded. Further, in the event that there is no need to modify the terms of the master deed or bylaws and if the only changes are revisions to the condominium subdivision plan, then there shall be no need to re-record the master deed and/or bylaws but any such revisions may be reflected by the recording of an amendment for the purpose of evidencing the locations of units, common elements and utilities as actually built. 8. All of the co-owners and mortgagees of units and other persons the co-owners and mortgagees of units and other persons interested or to become interested in the project from time to time shall be deemed to have irrevocably and unanimously consented to such amendments to this master deed as may be proposed by developer to effectuate the foregoing and to any proportionate reallocation of percentages of value of units which developer may determine necessary in conjunction with such amendments. All such interested persons irrevocably appoint developer as agent and attorney for the purpose of execution of such amendments to the master deed and all other documents necessary to effectuate the foregoing. Such amendments may be effected without the necessity of rerecording the entire master deed or the exhibits and may incorporate by reference all or any pertinent portions of this master deed and such exhibits. ARTICLE VIII CONSOLIDATION AND OTHER MODIFICATION OF UNITS 1. Notwithstanding any other provision of the master deed or the bylaws, units in the condominium may be consolidated, modified and the boundaries relocated, in accordance with the act, any applicable local ordinances and regulations, and this Article; such changes in the affected unit or units shall be promptly reflected in a duly recorded amendment or amendments to this master deed. No such changes shall be made, however, without the approval of the township. Subject to such approval of the township, developer reserves the sole right during the development and sales period and without the consent of any other co-owner or any mortgagee of any unit to do the following: a. Realign or alter any unit which it owns, consolidate under single ownership two or more units which are located adjacent to one another, and relocate any boundaries between adjoining units. Such realignment of units, consolidation of units and relocation of boundaries of units shall be given effect by an appropriate amendment or amendments to this master deed in the manner provided by law, which 13

14 amendment or amendments shall be prepared by and at the sole discretion of developer, its successors or assigns. 14

15 b. In any amendment or amendments resulting from the exercise of the rights reserved to developer above, the unit or each of the units resulting from such consolidation shall be separately identified by number and the percentage of value as set forth in Article V shall be adjusted so that all units have equal percentages of value. Such amendment or amendments to the master deed shall also contain such further definitions of general or limited common elements as may be necessary to adequately describe the units in the condominium project as so consolidated. All of the co-owners and mortgagees of units and other persons interested or to become interested in the project from time to time shall be deemed to have irrevocably and unanimously consented to such amendment or amendments of this master deed to effectuate the foregoing and to any proportionate reallocation of percentages of value of units which developer or its successors may determine necessary in conjunction with such amendment or amendments. All such interested persons irrevocably appoint developer or its successors as agent and attorney for the purpose of execution of such amendment or amendments to the master deed and all other documents necessary to effectuate the foregoing. Such amendments may be effected without the necessity of rerecording an entire master deed or the exhibits. 2. All co-owners whose interests would be affected may assign or reassign a limited common element, on notice to any affected mortgagees, by applying in writing to the board of directors of the association. On receipt of such an application, the board shall promptly have an amendment to this master deed assigning or reassigning all rights and obligations with respect to the limited common elements involved prepared and signed and shall deliver the amendment to the co-owners of the units affected once they have paid all reasonable costs for the preparation and recording of the amendment. 3. Except as stated in this master deed, condominium units shall not be separable from the common elements appurtenant to them and shall not be used in any manner inconsistent with the purposes of the project or in any other way that would interfere with or impair the rights of any co-owner to use and enjoy the co-owner's unit or the common elements appurtenant to it. ARTICLE IX EASEMENTS, RESERVATIONS AND RESTRICTIONS 1. There shall be easements to, through and over all portions of the land in the condominium, including all areas lying without unit boundaries, for installation and for the continuing existence, maintenance, repair, replacement and enlargement of or tapping into all utilities in the condominium. Also, there shall be deemed to be a fifteen (15) foot wide additional easement for public utilities outside and on both sides of the road rights-of-way condominium subdivision plan which shall extend over and onto the units and/or the 15

16 limited common elements appurtenant to the units, at the case may require. 2. The developer retains the following additional rights: a. The developer reserves for the benefit of itself, its successors and assigns, and all future owners of the area of future development or any portion or portions thereof, an easement of the unrestricted use of all roads, walkways and trails in the condominium for the purpose of ingress and egress to and from all or any portion of the area of future development. All expenses of maintenance, repair, replacement and resurfacing of any road referred to in this section shall be shared by this condominium and any developed portions of the area of future development, the closest means of access to a public road of which is over such road or roads. The co-owners of this condominium shall be responsible for payment of a proportionate share of such expenses which share shall be determined by multiplying such expenses by a fraction, the numerator of which is the number of dwelling units in this condominium, and the denominator of which is comprised of the numerator plus all other dwelling units in the area of future development, the closest means of access to a public road of which is over such road. b. The developer also hereby reserves for the benefit of itself, its successors and assigns, the future owners of the area of future development or any portion or portions thereof, perpetual easements to utilize, tap, tie into, extend and enlarge all utility mains located in the condominium, including, but not limited to, water, gas, storm and sanitary sewer mains. In the event developer, its successors or assigns, utilities, taps, ties into, extends or enlarges any utilities located in the condominium, it shall be obligated to pay all of the expenses reasonably necessary to restore the condominium premises to their state immediately prior to such utilization, tapping, typing-in, extension or enlargement. All expenses of maintenance, repair and replacement of any utility mains referred to in this section which are shared by parcels outside the condominium shall be apportioned so that the co-owners of this condominium shall be responsible from time to time for payment of a proportionate share of such expenses which share shall be determined by multiplying such expenses times a fraction, the numerator of which is the number of dwelling units in this condominium, and the denominator of which is comprised of the numerator plus all other dwelling units in any portion of the area of future development that are served by such mains and the balance of such expenses shall be paid by the owners of the dwelling units in such other portion or portions of such land. c. The developer reserves the right at any time during the development and sales period to dedicate to the public a right-of-way of such width as may be required by the local public authority over any or all of the units and appurtenant limited common elements in the project. Any such right-of-way dedication may be made by the developer without the consent of any co-owner, mortgagee or other person 16

17 and shall be evidenced by the appropriate amendment to this master deed and to the condominium subdivision plan, recorded in the Wayne County Records. All of the co-owners and mortgagees of units and other persons interested or to become interested in the project from time to time shall be deemed to have irrevocably and unanimously consented to such amendment or amendments of this master deed to effectuate the foregoing right-of-way dedication. d. The developer reserves the right at any time during the development and sales period to grant easements for utilities over, under and across the condominium and all units and common elements therein to appropriate governmental agencies or public utility companies and to transfer title of utilities to governmental agencies or to utility companies. Any such easement or transfer of title may be conveyed by the developer without the consent of, any co-owner, mortgagee or other person and shall be evidenced by an appropriate amendment to this master deed and to the condominium subdivision plan, recorded in the Wayne County Records. All of the co-owners and mortgagees of units and other persons interested or to become interested in the project from time to time shall be deemed to have irrevocably and unanimously consented to such amendments to this master deed as may be required to effectuate the foregoing grant of easements or transfers of title. 3. The association acting through its lawfully constituted board of directors (including any board of directors acting prior to the transitional control date) shall be empowered and obligated to grant such reasonable easements, licenses, rights-of-entry and rights-of-way over, under and across the condominium premises for utility purposes, or other lawful purposes as may be necessary for the benefit of the condominium subject, however, to the approval of the developer so long as the developer and sales period has not expired. 4. The developer and association and all public or private utility agencies or companies shall have such easements over, under, across and through the condominium premises, including all units and common elements, as may be necessary to fulfill any responsibilities of maintenance, repair, decoration, replacement or upkeep which they or any of them are required or permitted to perform under the condominium documents or by law or to respond to any emergency or common need of the condominium, provided, however, that the easements granted shall not entitle any person other than the co-owner to gain entrance to the interior of any dwelling or garage located within a unit. While it intended that each co-owner shall be solely responsible for the performance and costs of all maintenance, repair and replacement of and decoration of the residence and all other appurtenances and improvements constructed or otherwise located within his unit, it is nevertheless a matter of concern that a co-owner may fail to properly maintain his unit or any limited common elements appurtenant thereto in a proper manner and in accordance with the standards set forth in this master deed, the bylaws and any rules and regulations promulgated by the association. Therefore, in the event a co-owner fails, as required by this master deed, the bylaws or any rules and regulations of the association, to properly and adequately maintain, decorate, repair, replace, landscape or otherwise keep his unit, 17

18 the dwelling thereon or any improvements or appurtenances located therein or any limited common elements appurtenant thereto, the association (and/or the developer during the development and sales period) shall have the right, and all necessary easements in furtherance thereof, (but not the obligation) to take whatever action or actions it deeds desirable to so maintain, decorate, repair or replace the dwelling within the unit (including the exteriors of any structures located therein), its appurtenances or any of its limited common elements, and any landscaping, all at the expense of the co-owner of the unit. Neither the developer nor the association shall be liable to the co-owner of any unit or any other person, in trespass or in any other form of action, for the exercise of rights pursuant to the provisions of this section or any other provision of the condominium documents which grant such easements, rights of entry or other means of access. Failure of the association (or the developer) to take any such action shall not be deemed a waiver of the association's (or developer's) right to take any such action at a future time. All costs incurred by the association or the developer in performing any responsibilities which are required, in the first instance to be borne by any co-owner, shall be assessed against such co-owner and shall be due and payable with his monthly assessment next falling due; further, the lien for non-payment shall attach as in all cases of regular assessments and such assessments may be enforced by the use of all means available to the association under the condominium documents and by law for the collection of regular assessments including, without limitation, legal action, foreclosure of the lien securing payment and imposition of fines. 5. There shall exist for the benefit of the township or any emergency service agency, an easement over all condominium roadways for use by the township or emergency vehicles. The easement shall be for purposes of ingress and egress to provide, without limitation, fire and police protection, ambulance and rescue services and other lawful governmental or private emergency services to the condominium project and co-owners thereof. This grant of easement shall in no way be construed as a dedication of any streets, roads or driveways to the public. 6. There shall exist easements over all units and their appurtenant limited common elements for purposes of providing storm water drainage as designated on the condominium subdivision plan. No co-owner shall disturb the grade or otherwise modify the areas within such easements in any way so that the storm water drainage designed for the condominium premises shall be unimpeded. Each co-owner shall, however, be solely responsible for installing, maintaining, repair and replacing landscaping materials located within the storm drainage easement areas lying within the co-owner's unit and appurtenant limited common element yard area. 18

19 7. Various utility installations exist within the units and yard areas and are depicted on the condominium subdivision plan. Perpetual easements exist and are hereby created in this master deed and otherwise in favor of all units and the co-owners thereof for the continued existence, maintenance, repair and replacement of such utilities, whether located above or below ground. Also, other utility mains (including, without limitation, natural gas, electric and telephone conduits) may be installed by or at the instance of developer across all units to serve some or all other units in the condominium. developer reserves the right to create all such easements and to install or cause to be installed any and all utilities within and across all units in such locations as developer may elect, in developer's sole and absolute discretion and, further, to tap into, extend and enlarge such utilities as may be necessary, in developer's judgment. All units shall be convertible by developer to any extent necessary to create general common elements and easements in furtherance of the rights reserved in this section. ARTICLE X AMENDMENTS AND TERMINATION 1. If there is no co-owner other than the developer, the developer may unilaterally amend the condominium documents or, with the consent of any interested mortgagee, unilaterally terminate the project. All documents reflecting such amendment or termination shall be recorded in the public records of Wayne County, Michigan. 2. If there is a co-owner other than the developer, the condominium documents may be amended for a proper purpose only as follows: a. An amendment may be made without the consent of any co-owners or mortgagees if the amendment does not materially alter the rights of any co-owners or mortgagees of units in the project, including amendments to modify the types and sizes of unsold condominium units and their appurtenant limited common elements; amendments to facilitate conventional mortgage loan financing for existing or prospective co-owners; and amendments enabling the purchase of such mortgage loans by the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, the Government National Mortgage Association, or any other agency of the federal government or the State of Michigan. b. Even if an amendment would materially alter the rights of any co-owners or mortgagees, it can be made if at least two-thirds of the co-owners and mortgagees consent. However, dimensions or limited common elements of a co-owner's unit may not be modified without the co-owner's consent, nor may the formula used to determine percentages of value for the project or provisions relating to the ability or terms under which a unit may be rented be modified without the consent of the developer and each affected co-owner and mortgagee. Rights reserved by the 19

20 developer in this master deed, including rights to amend the master deed for purposes of expansion, contraction, or modification of units in the course of construction, shall not be amended without written consent from the developer as long as the developer or its successors continue to own or to offer for sale any unit in the project or any part of the area of future expansion. For the purpose of this provision, a mortgagee shall have one vote for each mortgage held. c. The developer may also make a material amendment unilaterally without the consent of any co-owner or mortgagee for the specific purposes reserved by the developer in this master deed. Until the completion and sale of all units as described in Article V, such rights reserved by the developer may not be further amended except with written consent from the developer or its successors or assigns. d. A person causing or requesting an amendment to the condominium documents shall be responsible for the costs and expenses of the amendment, except for amendments based on a vote of the prescribed majority of co-owners and mortgagees or based on the advisory committee's decision, the costs of which are administration expenses. The co-owners and mortgagees of record shall be notified of proposed amendments under this provision at least 10 days before the amendment is recorded. e. If there is a co-owner other than the developer, the project may only be terminated with the consent of the developer and at least 80% of the co-owners and mortgagees, as follows: (1) The agreement of the required number of co-owners and mortgagees to terminate the project shall be evidenced by their signing of the termination agreement or ratification of it. The termination shall become effective only when this evidence of the agreement is recorded. (2) On recording an instrument terminating the project, the property constituting the condominium shall be owned by the co-owners as tenants in common in proportion to their undivided interests in the common elements immediately before recordation. As long as the tenancy in common lasts, each co-owner or the heirs, successors, or assigns shall have an exclusive right of occupancy of that portion of the property that formerly constituted the condominium unit. (3) On recording an instrument terminating the project, any rights the coowners may have to the assets of the association shall be in proportion to their undivided interests in the common elements immediately before recordation, except that common profits shall be distributed in accordance with the condominium documents and the act. 20

21 (4) Notification of termination by first-class mail shall be made to all parties interested in the project, including escrow agents, land contract vendors, creditors, lienholders, and prospective purchasers who have deposited funds. Proof of dissolution must be submitted to the administrator. ARTICLE XI ASSIGNMENT Any or all of the rights and powers granted or reserved to the developer in the condominium documents or by law, including the power to approve or disapprove any act, use or proposed action or in any other matter or thing, may be assigned by it to any other entity or to the association. Any such assignment or transfer shall be made by appropriate instrument in writing duly recorded in the office of the Wayne County Register of Deeds. Witnessed: Signed: RALI Development, L.L.C., a Michigan limited liability company By: Winding Creek Associates, L.L.C., a Michigan limited liability company Its: Member By: Its: Dominic Liburdi Member And: Its: By: Its: Fraser Fieldstone Limited Partnership, a Michigan limited partnership Member R & H Industries, Inc., a Michigan corporation General Partner By: Its: Raif Harik President 21

22 Subscribed and sworn to before me on January, 1996, in Oakland County, Michigan by Dominic Liburdi, Member of Winding Creek Associates, L.L.C., a Michigan limited liability company, Member of RALI Development, L.L.C., a Michigan limited liability company, and by Raif Harik, President of R & H Industries, Inc., a Michigan corporation, the general partner of Fraser Fieldstone Limited Partnership, a Michigan limited partnership, Member of RALI Development, L.L.C., a Michigan limited liability company, on behalf of the company. Notary Public, Oakland County, Mi My commission expires: No interest in real estate is being conveyed by this document. No revenue stamps are required. Drafted by and when recorded return to: David K. McDonnell 401 South Woodward Avenue Suite 450 Birmingham, Michigan (810)

23 EXHIBIT A CONDOMINIUM BYLAWS OF WINDING CREEK CONDOMINIUM ARTICLE I THE CONDOMINIUM PROJECT 1. Organization. Winding Creek Condominium, a residential condominium project located in Huron Township, is being constructed in a multiple phases. Once the master deed is recorded, the management, maintenance, operation, and administration of the project shall be vested in an association of co-owners organized as a nonprofit corporation under Michigan law. 2. Compliance. All present and future co-owners, mortgagees, lessees, or other persons who may use the facilities of the condominium in any manner shall be subject to and comply with the act, the master deed and its amendments, the articles of incorporation, these bylaws, and other condominium documents that pertain to the use and operation of the project. The association shall keep current copies of these documents and make them available for inspection at reasonable hours to co-owners, prospective purchasers, and prospective mortgagees of units in the project. If the act conflicts with any condominium documents referred to in these bylaws, the act shall govern. A party's acceptance of a deed of conveyance or of a lease or occupancy of a condominium unit in the project shall constitute an acceptance of the provisions of these documents and an agreement to comply with them. 3. Bylaws. These bylaws shall constitute both the bylaws referred to in the master deed and required under the act as condominium bylaws, and the bylaws provided for under the Michigan Nonprofit Corporation Act as corporate bylaws. 4. Site Condominium. Winding Creek Condominium is a site condominium project. Each unit consists of a building site, and the developer does not intend, and is not obligated, to construct any improvements upon any unit. ARTICLE II MEMBERSHIP AND VOTING 1. Membership. Each present and future co-owner of a unit in the project shall be a member of the association, and no other person or entity shall be entitled to membership. The share 23

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