DECLARATION OF DEED RESTRICTIONS HORSESHOE FALLS ESTATES STATE OF TEXAS KNOW ALL MEN BY THESE PRESENTS: COUNTY OF COMAL

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1 DECLARATION OF DEED RESTRICTIONS HORSESHOE FALLS ESTATES STATE OF TEXAS KNOW ALL MEN BY THESE PRESENTS: COUNTY OF COMAL That CANYON LAKE HORSESHOE FALLS ESTATES PROPERTY OWNERS ASSOCIATION, INC., ( POA ), a non-profit corporation, through this conveyance, does hereby adopt and establish the following amended reservations, covenants and easements to apply uniformly to the use, occupancy and conveyance of all lots of HORSESHOE FALLS ESTATES, and each contract or deed which may be hereafter executed with regard to any of the lots in said HORSESHOE FALLS ESTATES, shall conclusively be held to have been executed, delivered and accepted subject to the following reservations, restrictions, covenants and easements, regardless of whether or not said reservations, restrictions, covenants and easements are set out in full or by reference in contract or deed. These amended restrictions are adopted by the authority of majority vote of the owners of the lots in the subdivision pursuant to the rules adopted and filed of record on May 30, Further, these amended restrictions are intended to and shall replace those restrictions filed of record in the Official Public Records of Comal County, Texas on May 30, Said restrictions shall be continued for a period of ten (10) years, unless before the expiration date thereof, the majority of the then owners of the lots in said subdivision, by a duly executed instrument in writing, recorded in the Official Public Records of Comal County, Texas, shall agree to change by majority vote or discontinue said restrictions. Said restrictions shall automatically be renewed at the expiration of said ten year period for successive ten year periods, unless and until abandoned or amended, by a majority of the owners of the lots in the subdivision. I, as President of the POA, do hereby declare and acknowledge that the hereinafter set forth restrictions are to be binding upon me, my heirs, executors, administrators, successors and assigns, and the provisions of this document are hereby declared covenants running with the land: RESTRICTIONS 1. Definitions. The following terms, when used in this Declaration shall have the following meanings: a. Association or POA shall mean and refer to CANYON LAKE HORSESHOE FALLS ESTATES PROPERTY OWNERS ASSOCIATION, INC. b. Lot and/or Lots shall mean and refer to each of the lots shown on the subdivision plat of HORSESHOE FALLS ESTATES. c. Common Areas shall mean and refer to all real property owned or acquired by the POA for common use and enjoyment of the members of the POA and shall include, but not limited to, the park areas, community facilities, all recreational facilities, storage facilities, and other improvements.

2 d. Owner shall mean and refer to the recorded owner whether one or more persons, of fee simple title to any Lot which is a part of the Subdivision, but excluding those having such interest as merely a security for the performance of an obligation. e. Member and/or Members shall mean and refer to all those Owners who are members of the POA as provided in paragraph 18 below, together with all of the Owners in the Subdivision who are Members of the POA as provided in all Supplement Declarations. 2. Residential Use Only. All of the said Lots shall be known and described as residential Lots and no structure shall be erected, altered, placed or permitted to remain on any residential building plot other than one detached single-family dwelling. The property herein described shall be used solely for single-family residential purposes. Except as provided below, no building shall be erected, placed or permitted to remain on any lot other than one dwelling unit per each lot to be used for single-family residential purposes. a. New construction will require either an attached garage or carport, or a detached garage or carport. One servant s or guest quarters may be constructed to the rear of the property. The main structure should not exceed two (2) stories in height, above ground level. The ground floor area of the main structure, exclusive of open porches shall not be less than 1,200 square feet and a private garage or carport for not more than three (3) vehicles and other out buildings incidental to residential use. b. No building or Lot shall ever be used or occupied for any purpose except for that of a single-family residence exclusively and shall not be used or occupied for trade or business of any kind whatsoever. Excluded are phone and internet businesses where no face-to-face business with the public is conducted on the premises. No short-term commercial rentals, leases or bailments are allowed, and any rental of a property for less than a six (6) month period, whether for hours, days, weeks or months, is deemed commercial and is prohibited. Rentals, leases, or bailments for special events, for the purposes of operating a bed and breakfast, or vacation rentals utilizing services such as AirBnB, HomeAway or FlipKey are all deemed commercial and are prohibited. c. A residential lease for fewer than a six (6) month period is allowed if that lease is part of a contract for sale of real property, and the Buyer or Seller of that contract occupies the property. 3. Set Back. All dwellings shall be set back at least twenty-five (25) feet from the front property line, five (5) feet from the side Lot lines, or ten (10) feet to any side street line, or twenty five (25) feet of the rear property line. For the purposes of this covenant, eaves, steps and open porches or decks shall not be considered as part of a building, provided that this shall not be construed to permit any portion of a building on a Lot to encroach upon another lot. 4. Architectural Control Committee Approval. Prior to new construction or an addition, the Architectural Control Committee ( ACC ) must approve all structures in writing. No building shall be erected, placed, or altered on any Lot, until the following have been submitted to and approved by the ACC as to quality of workmanship and materials and the harmony of the exterior design with respect to topography and finish grade elevation:

3 a. A site plan showing the footprint of the building and showing the location of all proposed improvements, including but not limited to structures, patios, driveways, fences and walls. The plans should include the set backs in feet from all sides. b. A description of the exterior materials textures and shapes of all buildings and structures. c. Dimensional floor plans of all enclosed spaces and garages. d. Exterior elevations of all proposed buildings and structures. e. Any other data or information requested or deemed reasonably necessary by the ACC. All buildings must be completed not later than one (1) year after laying the foundations. 5. Masonry Construction. All footings, piers and foundations of the main residence shall be of concrete or masonry construction. Skirting of pier and beam foundation is required. 6. Exterior Design. All exterior wall design and materials used in the exterior walls and surface areas of the Main structure and any outbuildings constructed on any Lot must be in keeping with the general architectural harmony of the other structures in the subdivision, as approved in writing by the ACC. 7. Fencing. Fences or walls to be erected, placed or altered on any Lot shall be no higher than six (6) feet. Front and rear fences must be with the property lines. No solid fence more then three (3) feet tall may be placed to the front of a house. Fences may be constructed of plastic, metal, wood, rock or brick with like columns, after approval in writing by the ACC. The finished side of the fence should be on the outside. 8. Sight Lines. No fence, wall, hedge, or shrub planting which obstructs sight lines at elevations between two (2) and six (6) feet above the roadways shall be placed or permitted to remain on any corner Lot within the triangular area formed by the street property lines, and a line connecting them at points twenty-five (25) feet from the intersection of the street lines, or in the case of a rounded corner, property lines withing ten (10) feet from the intersection of a street property line with hedge of a driveway or alley pavement. No tree shall be permitted to remain within such distances of such intersections unless the foliage line is maintained at sufficient height to prevent obstructions of such sight lines. 9. Nuisances. No noxious or offensive trade or activity shall be carried on upon any Lot nor shall any activity which may be or become an annoyance or nuisance to the neighborhood be initiated. The use of or discharge of firearms other than for the protection of human life, the protection of private property, or for the termination of rabid or destructive animals is expressly prohibited. 10. Temporary Structures. No structure of a temporary character, such as a trailer, tent, or Recreational Vehicle ( RV ) shall be used as a residence, temporary or permanently nor shall any out buildings erected on any Lot be used as a residence on a temporary or permanent basis. RV s can not be used as a residence or temporary sleeping quarters without prior written permission of the POA. If permission is granted by the POA, any temporary structure may only be used for up to one (1) year during the construction of a residence. Pre-manufactured, modular and mobile homes are prohibited in the community. No pre-existing building or home may be brought in and placed on a Lot.

4 11. Signs. No sign of any kind shall be displayed to public view on any residential lot except one that advertises the property for sale or as a long-term rental or signs used by a builder to advertise during construction and sales period. Political signs may be placed on an owner s Lot not more than three (3) month before the election and removed not later than one (1) month after the election. 12. Husbandry Prohibition. No animals, livestock or poultry of any kind shall be raised, bred or kept on any lot. Dogs, cats, birds or other household pets may be kept, provided that they are not kept, bred or maintained for any commercial purpose. Dogs, cats, birds and other household pets shall be limited to not more than three each. Household pets, other than dogs, cats and birds, are only allowed in self-contained enclosures such as aquariums. No animal shall be allowed to make an unreasonable amount of noise, or to become a nuisance, and no domestic pets will be allowed on any portion of the property other than the Lot of its owner unless confined to a leash. No animal shall be allowed to run at large and all animals shall be kept within enclosed areas, which must be clean, sanitary and reasonably free of refuse, insects and waste at all times. No deer feeders or any feeding of deer is allowed. 13. Drilling Prohibition. No exploration for or development of oil, gas and other minerals of any kind shall be permitted upon any Lot, nor shall any wells, tanks, tunnels, mineral excavations or shafts be permitted upon or in any Lot. No derrick or other structure designed for use in boring for oil or natural gas shall be erected, maintained or permitted upon any Lot. 14. Trash. No rubbish and debris of any kind shall be placed or permitted to accumulate upon the property and no odors shall be permitted to arise therefrom so as to render such property or any portion thereof unsanitary, unsightly, offensive or detrimental to any other property of it's occupants. Refuse, garbage and trash shall be kept at all times in covered containers. Trash, garbage and other waste materials shall not be placed on any public ares. All incinerators or other equipment for the storage or disposal of such material shall be kept in a clean and sanitary condition. 15. Grease. All grease and sewage disposals shall be so constructed as to dispose of such waste material through properly engineered grease traps, septic tanks and field pipes and it is strictly forbidden to dispose of grease or sewage in any other manner. 16. Vehicle Storage. No vehicle may be permanently parked in view of any street or neighboring residence that is not currently licensed and in running condition. Major maintenance on vehicles should be conducted in an area of the property not visible from the street or neighboring residences. Boats, trucks over one (1) ton, RVs and equipment must be parked out of sight or to the side or rear of the residence. No All-Terrain Vehicles ( ATV ), motorcycle, or other small motorized vehicles shall be allowed in any of the Common Areas. Golf carts only allowed in the Common Areas. 17. Weed Control. The owner of a Lot in the subdivision shall maintain weed growth control on their Lot in harmony with the appearance of other properties in the subdivision. Owners shall have the privilege of having said Lot cleaned to comply with the above or may allow a POA Maintenance Contractor do so, provided that any reasonable expense incurred in doing such shall be paid by the property owner. 18. POA Membership. Each owner, whether one or more persons or entities, of a Lot in HORSESHOE FALLS ESTATES, shall automatically become a member of the POA, and shall

5 remain a member of said POA until such time as he ceased to own a Lot in said subdivision, at which time said membership shall automatically cease. Upon any transfer of ownership of any Lot, the new owner shall succeed to such membership of said POA. Each Lot owner shall be obligated to punctually pay any and all assessments made by said POA for the purpose of maintaining the park and recreational area owned by the POA, such assessment is subject to being secured by a lien in favor of said POA on each Lot. However, said lien shall be subrogated to any lien created by the Lot owner for improvements made on the property. If one or more persons or entities does not own a Lot in HORSESHOE FALLS ESTATES, such person, persons or entities is not a member of the POA. 19. Fines. In the event of any violation of any of the covenants herein set forth, and after written notice of such violation has been served upon the owner of the Lot, or if such owner can not be found, then such notice has been posted upon the Lot in a location that a reasonable person would see it, with such notice citing the violation and providing a reasonable period of time to correct such violation, that after such reasonable period if such violation has not been corrected, then the POA shall cause the owner to be fined an amount as listed in the schedule following, with such fine amount being served upon the owner in like manner as the notice of violation. If such fine has not been paid within sixty (60) days of notice of fine, the POA shall secure payment of such fine by a lien in favor of the POA upon the Lot where the violation occurred. a. Residential Use Only fined $300 per day of violation. b. Set Back fined $300 per month of violation. c. Architectural Control Committee Approval fined $100 per week of violation. d. Masonry Construction fined $300 per month of violation. e. Exterior Design fined $300 per month of violation. f. Fencing fined $300 per month of violation. g. Sight Lines fined $300 per month of violation. h. Nuisances fined $50 per event in violation. i. Temporary Structures fined $50 per day of violation. j. Signs fined $50 per week of violation. k. Husbandry Prohibition fined $50 per day of violation. l. Drilling Prohibition fined $150 per week of violation. m. Trash fined $100 per week of violation. n. Grease fined $300 per month of violation. o. Vehicle Storage fined $100 per week of violation. p. Weed Control fined $50 per week of violation. 20. Enforcement. In the event of any violation or any attempt to violate any of the covenants herein set forth, it shall be lawful for any person or persons then owning at least one (1) Lot to prosecute any proceeding at law or in equity against the person or persons violating or attempting to violate any such covenant and either to prevent him or them from doing so or to recover damages or other duties for such violations. 21. Severability. Invalidation of any of the foregoing covenants by Judgment or Court order shall in no way affect any of the other provisions which shall remain in full force and effect.

6 22. Bona Fides. Any violation of these restrictions shall not defeat the lien on any such Lot or Lots, placed thereon in good faith, from being purchased in good faith. EXECUTED on this the day of May, STATE OF TEXAS COUNTY OF COMAL Debra Armentrout, President CANYON LAKE HORSESHOE FALLS ESTATES PROPERTY OWNERS ASSOCIATION, INC. BEFORE ME, the undersigned authority, on this the day of May, 2018, did personally appear, Debra Armentrout, President, CANYON LAKE HORSESHOE FALLS ESTATES PROPERTY OWNERS ASSOCIATION, INC., known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration their-in expressed, and in the capacity there-in stated. Notary Public, State of Texas

Page 1 of 5 THE STATE OF TEXAS: KNOW ALL MEN BY THESE PRESENTS: COUNTY OF HARRIS:

Page 1 of 5 THE STATE OF TEXAS: COUNTY OF HARRIS: KNOW ALL MEN BY THESE PRESENTS: WESTCHESTER REALTY CO., a Texas corporation, owner of the lands and premises hereinafter described for the purpose of evidencing