Declaration of Covenants – Trails at Beech Creek HOA

AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS LAND USE, ARCHITECTURAL CONTROL, COMMON AREA AND AMENITIES

ARTICLE I: DEFINITIONS

Section 1. “Association” shall mean and refer to The Trails at Beech Creek Homeowners Association, Inc., a Maryland corporation, its successors and assigns.

Section 2. “Common Area” shall mean and refer to all real property (including all improvements thereon) to be conveyed to the Association, including open space and real property or other facilities in which the Association acquires a right of use for the benefit of it and its members. The Common Area to be conveyed to the Association prior to the conveyance of a Lot to an Owner is described in Exhibit B attached hereto as a part hereof.

Section 3. “Properties” shall mean and refer to all that certain real property described and shown on Exhibit A attached hereto as a part hereof and such additions thereto as may hereafter be brought within the jurisdiction of the Association.

Section 4. “Declarant” shall mean and refer to Stepney Road Holding LLC, a Maryland limited liability company, its successors and assigns, if such assigns should acquire more than one (1) developed Lot from Declarant for the purpose of development and are expressly granted the rights of the Declarant in conjunction therewith by virtue of a written instrument recorded among the Land Records of Harford County, Maryland.

Section 5. “Detached Unit” shall mean and refer to a dwelling unit constructed on any Lot that is not attached to any other dwelling unit, i.e., a single family home.

Section 6. “Attached Unit” shall mean and refer to a dwelling unit constructed on any Lot that is attached to one or more other dwelling units and sharing common walls or roofs, i.e., a duplex or townhome.

Section 7. “Lot” shall mean and refer to any plot of land shown upon any recorded subdivision plat of the Properties, as amended from time to time, together with all buildings and improvements thereon, with the exception of the Common Area, including collectively, any Lot upon which a Detached Unit or Attached Unit is constructed (a Lot with a Detached Unit shall sometimes hereinafter be referred to as a “Detached Unit Lot;” a Lot with an Attached Unit shall sometimes hereinafter be referred to as an “Attached Unit Lot”).

Section 8. “Owner” shall mean and refer to the record owner, whether one or more persons or entities, of fee simple title to any Lot which is a part of the Properties, including contract sellers but excluding those having such interest merely as security for the performance of an obligation.

Section 9. “Builder” shall mean and refer to an Owner of an unimproved Lot for the purpose of constructing a dwelling thereon and designated in writing as a Builder by the Declarant. For purposes of this Declaration, The Ryland Group, lnc. is hereby designated as a Builder.

Section 10. “Amenities” shall mean and refer to any community center, swimming facilities, recreational facilities, entrance wall, Project Development Sign, architectural features and/or landscaped areas maintained by the Association identifying the Beechtree Estates subdivision whether located on a Lot or Common Area.

Section 11. “Project Development Sign” means a sign of any kind and associated landscaping maintained by the Association identifying the Beechtree Estates subdivision, located on a Common Area.

Section 12. “Structure” means all improvements, structures and appurtenances, the placement of which upon any Lot or the improvements thereon may affect the appearance of the Lot or the exterior appearance of the improvements on the Lot including, by way of illustration and not limitation, any building, trailer, garage, porch, shed, mailbox, greenhouse, bathhouse, gazebo, coop or cage, covered or uncovered patio, deck, awning heating or air conditioning equipment, solar panels, swimming pool, outdoor play equipment, including a basketball hoop, clothesline, radio, television or other antenna or “dish,” exterior lighting, fence, sign, curb, paving, wall, roadway, walkway, planting, landscaping where the trees or shrubbery are intended to grow to a height in excess of four (4) feet, ornamental statute, signboard or temporary or permanent living quarters, and any change or alteration of any previously approved Structure, including any change of exterior appearance, color or texture, and including the removal of existing trees. “Structure” shall also mean (i) any excavation, fill, ditch, diversion, dam or other device which affects or alters the natural flow of surface waters or any waters in any natural or artificial stream, wash or drainage channel, from, upon or across the Property or any Lot; and (ii) any change in the grade of the Property or any Lot of more than six (6) inches from that existing at the time of conveyance of any Lot by the Declarant to another Owner.

ARTICLE II: PROPERTY RIGHTS

Section 1. Owners’ Easements of Enjoyment in Amenities and Common Area. Every Owner shall have a right and non-exclusive easement of enjoyment in and to the Amenities and Common Area, which shall be appurtenant to and shall pass with the title to every Lot, subject to the following provisions:

a. The right of the Association to charge reasonable admission and other fees for the use of any Amenities or any facility situated upon the Common Area.

b. The right of the Association to suspend the voting rights and right to use and/or bar access to the Amenities or Common Area by an Owner and anyone to whom said Owner’s right of use has been delegated for any period during which any assessment against his Lot remains unpaid; and for a period not to exceed sixty (60) days for any infraction of its published Rules and Regulations.

c. The right of the Association to mortgage, dedicate or transfer all or any part of the Amenities or Common Area to any public agency, authority or utility for such purposes and subject to such conditions as may be agreed to by the members of the Association. No such mortgage, dedication or transfer shall be effective unless an instrument signed by the Secretary of the Association has been recorded. The document shall certify that by a vote of at least two-thirds (2/3) of each class of members such mortgage, dedication or transfer was approved.

d. The right of the Association to reasonably limit the use of private parking areas for the benefit of the Attached Unit Lots as may be shown on the plats of the Properties for the benefit of the Owners of dwellings adjacent to such parking areas.

e. The right of the Association to promulgate Rules and Regulations pursuant to Article XIV herein regarding the use of the Amenities, including hours of operation, regulation of activities, restrictions on the consumption of alcoholic beverages on or in the Amenities, and the rental of the amenities to an Owner for a function.

f. Without limiting the generality of the foregoing, the right of the Association to prohibit or regulate the use of Amenities and Common Area for activities which are contrary to the health, safety and welfare of the members of the Association.

Section 2. Delegation of Use. Any Owner may delegate, in accordance with the By-Laws and Rules and Regulations of the Association, his right of enjoyment to the Amenities Common Area to the members of his household, his tenants or contract purchasers who reside on the property.

ARTICLE III: MEMBERSHIP AND VOTING RIGHTS

Section 1. Association Membership. Every Owner of a lot which is subject to assessment shall be a Member of the Association. Membership shall be appurtenant to and may not be separated from ownership of any Lot which is subject to assessment.

Section 2. Class of Voting Membership. The Association shall have one (1) class of voting membership. All Members of the Association, including the Declarant, shall be entitled to one (1) vote for each Lot owned. When more than one (1) person holds an interest in any Lot, all such persons shall be Members. The vote for such Lot shall be exercised as they determine, but in no event shall more than one (1) vote be cast with respect to any Lot. When at least seventy-five percent (75%) of the total number of Lots that may be part of the Development after all phases are complete and not just the Lots that are shown on subdivision plats of the Development are owned by members of the public for residential purposes, the initial meeting of the Members of the Association to elect a governing body of the Association pursuant to Section 11B-106.1 of the Real Property Article of the Annotated Code of Maryland and Article III, Section 1 of the Bylaws of the Association shall be scheduled and held as provided therein.

ARTICLE IV: COVENANT FOR MAINTENANCE ASSESSMENTS

Section 1. Creation of the Lien and Personal Obligation of Assessments. The Declarant, for each Lot owned within the Properties, hereby covenants, and each Owner of any Lot by acceptance of a deed therefore, whether or not it shall be so expressed in such deed, is deemed to covenant and agree to pay to the Association: (1) annual assessments or charges; and (2) special assessments for capital improvements, such assessments to be established and collected as hereinafter provided. The annual and special assessments, together with interest, costs and actual attorney’s fees, shall be a charge on the Lot to which the same relates and shall be a continuing lien upon the Lot against which each such assessment is made. The aforesaid lien shall be enforceable by the Association in the same manner and subject to the same requirements as are specified by the law of Maryland and the Maryland Rules of Procedure for the foreclosure of mortgages or deeds of trust containing an assent to a decree and covering real property situate and lying in Harford County, Maryland. Each such assessment, together with interest, costs and actual attorneys’ fees, shall also be the personal obligation of the person who was the Owner of such property at the time when the assessment fell due. The personal obligation for delinquent assessments shall not pass to an Owner’s successors in title unless expressly assumed by them. Without limiting the powers of the Association herein granted, the Association shall have the power to enforce the aforesaid lien in accordance with the terms of the Maryland Contact Lien Act (Ann. Code of Md. Real Property §14-201, et seq.) as amended from time to time or by any other legal means.

Section 2. Purpose of Assessments. The assessments levied by the Association pursuant to the authority of this Declaration shall be used exclusively to promote the recreation, health, safety and welfare of the residents in the Properties, for the payment of the costs and expenses of the Association, for the improvement and maintenance of the Common Area and Amenities, for the cost of maintaining and insuring any Amenities and for the cost of maintaining storm water management facilities serving the Properties.

Section 3. Annual Assessment. For the purpose of providing funds for the uses specified in Section 2 hereof, the Board of Directors of the Association shall in each fiscal year commencing on the first day of the month after the conveyance of the first Improved Lot (as defined in Section 7 below) to an Owner, levy an Annual Assessment against each Lot.

Section 4. Maximum Annual Assessment. Until January 1 of the year immediately following the conveyance of the first Improved Lot to an Owner, the maximum Annual Assessment shall be Six Hundred Twenty Four Dollars ($624.00) per Lot.

a. From and after January 1 of the year immediately following the conveyance of the first Improved Lot to an Owner, the maximum annual assessment shall increase each year not more than ten percent (10%) above the maximum assessment for the previous year without a vote of the membership.

b. From and after January 1 of the year immediately following the conveyance of the first Improved Lot to an Owner, the maximum annual assessment may be increased above ten percent (10%) with the approval of at least two-thirds (2/3) of the votes of the members who are voting in person or by proxy at a meeting duly called for this purpose.

c. The Board of Directors may fix the Annual Assessment at an amount not in excess of the maximum.

Section 5. Special Assessments. In addition to the Annual Assessment authorized above, the Association may levy, in any fiscal year, a Special Assessment. A Special Assessment shall be used only for the purpose of defraying, in whole or in part, the cost of construction, reconstruction, repair or replacement of a capital improvement which would otherwise be funded by annual assessments or generally benefit all members of the Association. Special Assessments shall be collected in the same manner as Annual Assessments. A Special Assessment shall have the assent of a majority of the Board of Directors and two-thirds (2/3) of the votes of the members who are voting in person or by proxy at a meeting duly called for that purpose.

Notwithstanding the foregoing, the Declarant and a Builder shall be exempt from payment of any Special Assessments.

Section 6. Notice and Quorum for Any Action Authorized Under Sections 3, 4 and 5. Written notice of any meeting called for the purpose of taking any action authorized under Sections 3, 4, and 5 shall be sent to all members not less than twenty (20) days nor more than ninety (90) days in advance of the meeting. At the first such meeting called, the presence of members or of proxies entitled to cast one-tenth (1/10) of the votes of each class of membership shall constitute a quorum. If the required quorum is not present, the members entitled to vote thereat shall have the power to adjourn the meeting and provide for notice of an additional meeting at which the members present shall constitute a quorum. No such subsequent meeting shall be held more than sixty (60) days following the preceding meeting.

Section 7. Unimproved Lot Assessment. Except as set forth below, Assessments for any Lot upon which no dwelling or similar improvement shall be situate during any fiscal year (an Unimproved Lot) shall be twenty-five percent (25%) of the amount of the assessment applicable to a Lot of the same type upon which a dwelling or similar improvement shall be situate (an Improved Lot). A Lot shall be considered to be an Unimproved Lot until such time as any dwelling or similar improvement being constructed thereon shall have been completed and is occupied for residential purposes. When a Lot is an Improved Lot during only a portion of a fiscal year, the Annual or Special Lot Assessment shall be duly apportioned and adjusted pro rata.

Notwithstanding the foregoing, the Declarant and a Builder shall be exempt from payment of any assessments for an Unimproved Lot and further, provided, Declarant shall be liable to fund any operating deficits of the Association during any time that Declarant owns one (1) or more Lots.

Section 8. Uniform Rate of Assessment. Both Annual Assessments and Special Assessments must be fixed at a uniform rate for all Lots and may be collected on a monthly, quarterly, semi-annual or annual basis.

Section 9. Date of Commencement of Annual Assessments: Due Dates. The annual assessments provided for herein shall commence as to each Lot on the first day of the month following the conveyance of each Improved Lot to an Owner. The first annual assessment shall be adjusted according to the number of months remaining in the calendar year. The Board of Directors shall fix the amount of the Annual Assessment against each Lot at least thirty (30) days in advance of each annual assessment period. Written notice of the annual assessments shall be sent to every Owner subject thereto. The due dates shall be established by the Board of Directors. The Association shall, upon demand and for a reasonable charge, furnish a certificate signed by an officer of the Association setting forth whether the assessments on a specified Lot have been paid. A properly executed certificate of the Association as to the status of assessments on a Lot shall be binding upon the Association as of the date of its issuance.

Section 10. Capital Contribution. Each initial homebuyer from Builder of an Improved Lot shall make a capital contribution to the Association in an amount equal to six (6) months’ of such Lot’s Annual Assessment. The capital contribution shall be collected at the time of the conveyance of an Improved Lot to the initial purchasers thereof. The capital contribution may be used for any purpose for which the Association may levy assessments pursuant to Section 2 hereof.

Section 11. Effect of Nonpayment of Assessments: Remedies of the Association. If an Owner does not pay an assessment as it becomes due, then the Association may bring an action at law against said Owner. Any assessment not paid within thirty (30) days after the due date shall bear interest from the due date at the rate of twelve percent (12%) per annum or at such other rate, not exceeding that charged by Harford County, Maryland for delinquent real estate tax payments, as the Board of Directors may establish from time to time. In addition, if the assessment is delinquent for at least fifteen (15) calendar days, the Owner shall be subject to a late fee equal to Fifteen Dollars ($15.00) or one-tenth (1/10) of the total amount of the delinquent assessment, whichever is greater. The Association may bring an action at law against the Lot Owner personally obligated to pay the same and/or foreclose the lien against the Lot. In the event such an action is brought, the Owner will be obligated to pay the collection costs, court costs and the Association’s actual attorney’s fees and the interest, costs, penalties and actual attorneys fees of any such action shall be added to the amount of such assessment. No Owner may waive or otherwise escape liability for the assessments provided for herein by non-use of the Common Area or abandonment of his or her Lot.

Section 12. Subordination of the Lien to Mortgages. The lien of the assessments provided for herein shall be subordinate to the lien of any first mortgage. The sale or transfer of any Lot shall not affect the assessment lien. However, the sale or transfer of any Lot pursuant to mortgage foreclosure or any proceeding in lieu thereof shall extinguish the lien of such assessments as to payments which become due prior to such sale or transfer. No sale or transfer shall relieve such Lot from liability for any assessments thereafter becoming due or from the lien thereof.

Section 13. Special Development District and Special Taxes. The Beechtree Estates Development (the “District”) is a special development district created by the Harford County, Maryland (the “County”) to provide means for planning, financing, and constructing various public improvements and community facilities within or for the benefit of the District (the “Public Improvements”). All of the property in the Beechtree Estates development is located within the District. The County has levied special taxes (the “Special Taxes”) on the Lots to pay the principal of, and interest and any premium on, special obligation bonds issued by the County to finance the Public Improvements (the “Bonds”). Special Taxes levied on the Lots are payable by such Lots’ respective Owners and are separate and apart from any fees assessed on the Lots by the Association. No proceeds of any assessment fees provided for in this Declaration will be used to pay the principal of, or interest or any premium on, any Bonds. No Special Taxes will be levied by the County on property owned by the Association. Owners should contact the administrator of the District (MuniCap, Inc., Toll Free 1-888-317-9970, Attention: Joshua Forster) regarding any questions on the Special Taxes or the District.

ARTICLE V: ARCHITECTURAL CONTROL

Section 1. Architectural Review Committee. The Architectural Review Committee, whose members shall be appointed by the Declarant (the “Architectural Review Committee”), shall have all the rights, powers and duties granted to it pursuant to this Declaration. The Architectural Review Committee shall at all times be comprised of at least one (1) but no more than three (3) members. The initial member of the Architectural Review Committee shall be Daniel Whitehurst. At any time, or from time to time, during the Development Period, the initial members of the Architectural Review Committee may be replaced for any reason (including death or resignation) with other individuals selected by the Declarant in its sole discretion. All questions shall be decided by a majority of the members of the Architectural Review Committee, and such majority shall be necessary and sufficient to act in each instance and on all matters. Each member of the Architectural Review Committee, now or hereafter appointed, shall act without compensation for services performed pursuant to this Declaration. The Declarant hereby grants to the Architectural Review Committee, its successors and assigns, the right to establish architectural design criteria for the Community and Rules and Regulations pursuant to Article XIV hereof, pertaining to the use of the Lots, which shall be made available to all members, and to waive such portion or portions of the provisions of Articles VI and VII herein as the Architectural Review Committee, in its sole discretion, may deem advisable and in the best interests of the community.

Section 2. Architectural Review.

a. Except as otherwise provided in this Declaration or in any rules or regulations adopted by the Board of Directors of the Association, no Structure shall be placed or constructed on any Lot nor shall any addition (including awnings screen doors and screens), change or alteration (including any change in exterior paint color and/or materials or other exterior appearance thereof, but excluding repainting or retreating with the same color or materials and seasonal decorations) (collectively, “Alterations”), be made to the exterior of any Structure and/or contour of any Lot, until plans and specifications, showing the nature, dimensions (including elevations and roof pitch or change in the grade of the Lot), material, color and location (including proposed front, rear and side setbacks), of the proposed Structure or Alterations, together with the proposed construction schedule, a designation of the party or parties to perform the work, photographs of the existing improvements or area to be improved, and other information requested by the Architectural Review Committee, have been submitted to and approved in writing by the Architectural Review Committee, and until all necessary permits and other governmental or quasi-governmental approvals shall have been obtained. The approval of the Architectural Review Committee of any Structure or Alterations shall in no way be deemed to relieve the Owner of any Lot from its obligation to obtain any and all governmental permits and approvals necessary for such Structure or Alterations, including but not limited to a building permit.

b. All questions before the Architectural Review Committee shall be decided by a majority of the Members of the Architectural Review Committee. Any Member who is aggrieved by any action or forbearance from action by the Architectural Review Committee may appeal the decision of the Architectural Review Committee to the Board of Directors and, upon the request of such Member, shall be entitled to a hearing before the Board of Directors of the Association. Such appeal shall be made by the Member in writing to the Board of Directors within fifteen (15) days of the date of the notice that such plans and specifications have been rejected by the Architectural Review Committee. The appeal hearing shall be held at the next regularly scheduled board meeting but in any event not less than sixty (60) days after the date the notice of the appeal is received in writing by the Board of Directors. The decision of the Board of Directors shall be final and unappealable.

c. The Architectural Review Committee shall have the right to disapprove any plans and specifications submitted for its review because of any of the following:

(i) failure of the plans or specifications to comply with any provision of this Declaration; applicable law or other guidelines adopted by the Architectural Review Committee;

(ii) failure to include information in the plans and specifications required by this Declaration or as may have been reasonably requested;

(iii) objections to the exterior design, appearance or materials of any proposed Structure or Alterations;

(iv) incompatibility of any proposed Structure or Alterations with the existing Structures on the Lot or other Lots or with the general plan of improvement of the Property;

(v) objections to the location of any proposed Structure or Alterations upon any Lot or with reference to other Lots;

(vi) objections to the grading plan;

(vii) objections to the color scheme, finish, proportions, style, architecture, workmanship or appearance of any proposed Strcuture or Alterations; or

(viii) the applying Owner is more than thirty (30) days delinquent in paying any assessments due and owing hereunder.

d. Written requests for approval shall be submitted by first class mail, or in person, in which case a written receipt shall be obtained, to the Beechtree Estates Homeowners Association, Inc., 4685 Millennium Drive, Belcamp, Maryland 21017, or such other place designated by the Declarant, the Board of Directors or the Architectural Review Committee in a notice to the Members. The approval request shall include one (1) set of the required plans and specifications, photographs of the existing improvements or area to be improved, and such other information as may be requested by the Architectural Review Committee. The Architectural Review Committee may, in its discretion, establish a reasonable review fee or a schedule of review fees based on the nature of the request to cover expenses, not to exceed Fifty Dollars ($50.00) in the aggregate for each submittal, which sum may be increased from time to time in the reasonable discretion of the Board of Directors. All funds net of out-of-pocket expenses shall be paid over to the Association. In the event the Architectural Review Committee fails to approve or disapprove any plans within sixty (60) days of receipt of the plans and the review fee, if any, such plans shall be deemed disapproved. In any case where the Architectural Review Committee disapproves any plans and specifications or approves the same only as modified or upon specified conditions, such disapproval or qualified approval shall be accompanied by a statement of the grounds upon which such action was based. Approval of any particular plans and specifications shall not be construed as a waiver of the right of the Architectural Review Committee to disapprove such plans and specifications, or any elements or features thereof, in the event such plans and specifications are subsequently submitted for use in any other instance.

e. Construction of any Structure or Alterations pursuant to the provisions of this Article shall be commenced within six (6) months following the date of approval and shall be completed within twelve (12) months from the start of construction, or within such other shorter or longer period as the Architectural Review Committee shall specify in its approval. In the event construction is not commenced or completed within such period, the approval shall lapse and compliance with the provisions of this Article shall again be required. New approvals shall be obtained within sixty (60) days of the expiration of the approved construction period, otherwise any Structure shall be promptly returned to its original condition. All Structures and Alterations shall be constructed and thereafter maintained in strict conformity with the approved plans and specifications and all applicable laws (i.e., a building permit and/or zoning variance shall be obtained prior to commencing any work requiring one). Upon completion of construction of any Structure or Alteration in accordance with the provisions hereof, the Architectural Review Committee, upon request of the applicant, shall issue a Certificate of Compliance identifying such Structure and the Lot on which the Structure is placed, stating that the Structure has been approved and completed pursuant to the terms hereof. Preparation and recording of such Certificate shall be at the expense of the applicant. Any Certificate of Compliance issued pursuant hereto shall be prima facie evidence of the facts therein stated, and as to any title insurer, such Certificate shall be conclusive evidence that all Structures on the Lot noted in such Certificate comply with the provisions hereof; provided, however, neither the Declarant, the Board of Directors, the Architectural Review Committee nor the Association shall have any liability whatsoever for any loss, cost, claim, damage, liability or expense which any Owner may suffer or incur by reason of (i) the rejection of any plans and specifications submitted to the Architectural Review Committee, (ii) any defects in any plans and specifications revised or approved by the Architectural Review Committee, (iii) any structural or other defects in any work done pursuant to such plans and specifications, or (iv) the failure of the improvements to comply with applicable laws.

f. If construction of any Structure or Alterations is undertaken other than in accordance with the provisions of this Declaration and applicable law, such action shall be deemed to be in violation of the provisions of this Declaration and, in such event, within the time period set forth in a notice from the Declarant, if it is still a Class B Member, the Architectural Review Committee or the Board of Directors, but in any event not less than thirty (30) days, or such shorter period as is expressly provided elsewhere in this Declaration, or such lesser written or oral notice (followed by written confirmation) as may be reasonable in an emergency situation which presents the threat of imminent danger or harm to persons or property, such Structure and/or Alterations shall be removed or
restored to its condition prior to such action, and use thereof shall cease, so as to terminate such violation. If the Owner has not terminated the violation within the stated cure period, any agent of the Association may enter upon such Lot and take such steps as are reasonable to terminate such violation and no trespass or other wrongful act by reason of such entry shall be deemed to have been committed; provided, however, the Association may not alter or demolish any Structure without first obtaining a court order. The Association, through the Board of Directors, may also assess an initial fine in an amount not to exceed Two Hundred Dollars ($200.00) and subsequent fines for continuing violations, which amounts may be increased from time to time in the reasonable discretion of the Board of Directors of the Association, against any Owner who constructs any Structure or Alterations without having applied for or without obtaining the approval of the Architectural Review Committee, which fine shall, if not paid within thirty (30) days of demand, be subject to enforcement in the same manner as assessments under Article IV. In addition, the Declarant, if it is still a Member, or the Board of Directors may exercise all legal and equitable remedies to prevent or remove any unauthorized Structure and/or Alterations or any portion thereof. Such Owner shall be personally liable to the Declarant, or the Association, as applicable, for any costs incurred in enforcing the provisions of this Declaration, including but not limited to, management agent costs, court costs and attorneys’ fees, to the same extent as such Owner is liable for an Assessment levied against such Owner’s Lot, and, upon the failure of the Owner to pay such costs within thirty (30) days after such Owner’s receipt of written demand for payment from the Declarant or the Association, the Declarant or the Association may establish a lien upon such Owner’s Lot in accordance with and subject to the provisions of this Declaration applicable to an assessment lien.

Section 3. Exemptions. Any Structure, Alterations or other improvements erected or installed on the Property or any Lot by or on behalf of the Declarant or any Builder shall not require the approval of the Architectural Review Committee. The Declarant intends that the provisions of this Article requiring the Architectural Review Committee’s approval shall not apply to a Lot until its title is first acquired of record by a person other than Declarant or a Builder. Neither the Declarant nor any Builder shall, by virtue of this Declaration, have any fiduciary or other duty to the Association, or any Owner, mortgagee or any other person, including but not limited to any duty to require that any Structure or dwelling be similar in size, architectural style or cost to those existing or planned for any other Lot.

Section 4. Right of Entry. The Declarant, the Architectural Review Committee, the Board of Directors and the Association shall have an easement to enter any portion of the Property or any Lot for the performance of their respective duties under this Article and the other provisions of this Declaration; provided such easement shall be exercised during daylight hours and shall not permit entry within the interior portion of any dwelling located on any Lot, but (by way of illustration only and not in limitation of the rights granted herein) shall permit the entry into fenced, or other enclosed areas of the Lot or the Property, and no trespass or other wrongful act by reason of such entry shall be deemed to have been committed. The Declarant, the Architectural Review Committee, the Board of Directors or the Association, as applicable, shall restore any damage caused by such entry; provided, however, to the extent the exercise of such right of entry is for the purpose of removing or restoring any violation of this Declaration, such removal or restoration shall not be deemed to constitute “damage caused by such entry.”

ARTICLE VI: USE RESTRICTIONS – GENERAL

Section 1. Residential Use. The Lots, except as hereinafter provided, shall be used for private and residential purposes only and in no event shall any dwelling be used at any time for any commercial purpose, provided, however, that the foregoing shall not preclude “No-impact home based businesses” as more fully described below. None of the Detached Unit Lots shall at any time be used for apartments or other types of multiple housing units; it being the intention of the Declarant that each and every one of the Detached Unit Lots be used solely for one (1) single family dwelling, and no other purposes, except such purposes as may be specifically reserved in the succeeding sections of this Declaration. None of the Attached Unit Lots shall at any time be used for apartments or other types of multiple housing units other than duplexes or townhomes, it being the intention of the Declarant that each and every one of the Attached Unit Lots be used solely for townhome or duplex dwellings. Notwithstanding anything herein to the contrary, pursuant to Section 11(B)-111.1 of the Real Property Article of the Annotated Code of Maryland (the “Code”), “No-impact home-based businesses” are permitted upon the Lots subject to the following requirements:

a. Owners shall notify the Association before operating a No-impact home-based business.

b. No-impact home-based businesses are expressly prohibited in any Amenities and/or Common Area.

c. Such additional requirements as may be specified by the Board of Directors of the Association, to the extent permitted by applicable law. The foregoing provisions of this Section are intended to be a restatement of the provisions of Section 11B-111.1 of the Code, and any future amendments or modifications thereto shall be deemed incorporated by reference herein as a part hereof.

For purposes hereof, a “no-impact home-based business” means a business that:

a. Is consistent with the residential character of the dwelling;

b. Is subordinate to the use of the dwelling for residential purposes and requires no external modifications that detract from the residential appearance of the dwelling;

c. Uses no equipment or process that creates noise, vibration, glare, fumes, odors, or electrical or electronic interference detectable by neighbors or that causes an increase of common expenses that can be solely and directly attributable to a No-impact home-based business;

d. Does not involve use, storage, or disposal of any grouping or classification of materials that the United States Secretary of Transportation or the State of Maryland or any local governing body designated as a hazardous material; and

e. Does not impede or actively impair any Common Area, including, but not limited to parking areas located within the Common Area.

Section 2. Family Day Care. A “Family Day Care Home,” as such term is defined in Section 2-121 of the Real Property Article of the Annotated Code of Maryland, as amended from time to time, is permitted provided it is in compliance with any applicable state and local laws.

Section 3. Offensive Activities. No noxious or offensive activities shall be carried on upon any Lot, nor shall anything be done thereon which may be or may become an annoyance, or nuisance to the neighborhood, provided, however, that this provision shall not in any way apply to any aspect of the Declarant’s activities or construction. Notwithstanding any provisions of this Declaration, activities in any way associated with construction of homes on, sales management or administration of the property subject to the jurisdiction of the Association, shall not be deemed noxious, offensive or a nuisance.

Section 4. Repair and Maintenance of Lots. Owners shall maintain their Lots and the exterior of their dwellings in good order and repair, including but not limited to, the seeding, watering and mowing of all lawns and yards, keeping all sidewalks, if any, neat, clean and in good repair, and free of ice and snow, the pruning and cutting of all trees and shrubbery and the painting (or other appropriate external care) of all structures on the Lot, including, without limitation, roofs, gutters and downspouts, all in a manner and with such frequency as is consistent with good property management and maintenance. Dead trees, shrubs and unsightly landscaping shall be removed promptly.

Section 5. Signs. Except as provided in Section 14 herein, no signs of any character shall be erected, posted or displayed upon, in or about any Lot or dwelling situate upon any Lot other than in accordance with Maryland law, provided, however, that one temporary real estate sign not exceeding six (6) square feet in area may be erected upon any Lot or attached to any dwelling placed on the market for sale or rent and further, provided, for sale signs may only be placed in the window of each dwelling by any Owner, other than Declarant or Builder. Upon settlement or rental of the property so advertised, the real estate sign must be immediately removed.

Section 6. Animals. The maintenance, keeping, boarding and/or raising of animals, livestock or poultry of any kind, regardless of the number, shall be and is hereby prohibited on any Lot or within any dwelling situate on any Lot, except for domestic pets such as dogs, cats and caged birds, provided that they are not kept, bred or maintained for commercial purposes. Notwithstanding the above, no Lot may have kept in, on or around them more than two (2) dogs. No animal shall be permitted to run free or be kept tied or chained outside of the dwelling for an extended period of time, nor shall it create any annoyance or nuisance to the neighborhood or any other Lot Owner. The Board of Directors shall have the right to adopt such additional rules and regulations regarding animals as it may, from time to time, consider necessary and appropriate.

Section 7. Trash. No Lot shall be used or maintained as a dumping ground for rubbish, trash, garbage or other waste and every Lot shall be maintained in a clean and sanitary condition. All containers or equipment for the storage or disposal of non-recyclable materials, i.e., rubbish, hash, garbage and other waste, shall be constructed of metal or rigid plastic and shall be secured with a lid, or shall be heavy duty plastic trash bags with a secured opening, and shall be kept in a clean and sanitary condition. Notwithstanding the above, recyclable materials may be stored in approved plastic bags. All such containers, equipment and bags shall not be permitted to remain in public view except on days of trash collection. Notwithstanding any provision of this Declaration, Declarant reserves the right for itself and a Builder to store materials, construction debris and trash during the construction period on the Properties without keeping the same in containers.

Section 8. Motor Vehicle Repairs. No major repairs to any motor vehicle shall be performed on any Lot or on any part of the Common Area. Minor repairs (repairs that are completed within a twenty-four hour period) may be performed provided such repairs are entirely performed within the attached garage of a Detached Unit or any Attached Unit having a garage. Owners of an Attached Unit shall be permitted to make minor repairs so long as such repairs are confined within a parking space in the Common Area, located at or near the Attached Unit. Any trash or debris caused by such minor repairs shall be required to be immediately removed. No Owner shall permit any oil or fluids to spill upon any part of the Common Area.

Section 9. Sheds. Except as otherwise provided for herein, no shed shall be erected, altered, placed or permitted to remain on any Lot upon the Property unless the shed is located within the rear yard of the Lot and is constructed of a similar style and with substantially similar identical siding and roof colors as the dwelling on the Lot, and it for the sole use of the respective owners who are occupants. All such sheds must be approved pursuant to Article V prior to location or construction on any Lot. Metal sheds are not permitted. No other structure of a temporary character, or a trailer, tent, shack, mobile home, barn, or other outbuilding shall be constructed or maintained on any Lot at any time.

Section 10. Yards. No lawn ornaments or improvements of any kind shall be erected, constructed, placed or planted on any Lot without prior approval pursuant to Article V except for reasonable holiday decorations, which decorations shall be required to be removed within fifteen (15) days after the subject holiday. Such approval shall only be given pursuant to an overall plan of improvements for the subdivision. The foregoing limitation shall not be construed to limit or regulate the planting of trees, shrubs and flowers within four (4) feet of the wall of the dwelling located on the Lot.

No landscaping, shrubbery or any other obstruction shall be placed on any Lot so as to block the clear view of traffic on any streets, nor shall any planting be done on any corner Lots closer than twenty (20) feet from either street line that will exceed three (3) feet in height, except for shade trees, which shall be trimmed so that a clear view of traffic maybe maintained up to the height of eight (8) feet.

Section 11. Motor Vehicles and Garages. Commercial vehicle shall mean and refer to any motor vehicle which has a gross vehicle weight greater than seven thousand (7000) pounds or has a manufacturer’s rated capacity of more than 3/4 ton. Unless otherwise provided by rule or regulation adopted by the Board of Directors, no vehicle which does not display current license tags and registration, junk or inoperable vehicle, commercial vehicle, limousine, bus, travel trailer, trailer, house trailer, mobile home, recreational vehicle, camper, camp truck, boat or the like shall be kept upon any Lot, (unless stored entirely within the attached garage on each Detached Unit or an Attached Unit duplex containing a garage), or on the Common Area. This provision shall not be construed to prohibit the owner of commercial vehicles from temporarily parking commercial vehicles on a Lot in order to provide goods and services to a Lot owner. Each Detached Unit Lot shall have erected upon it a single-family dwelling with a minimum of a one-car garage. Certain Attached Unit Lots shall have erected upon it a duplex or townhome dwelling with a minimum of a one-car garage, all in the discretion of the Builder. Notwithstanding any provision of this Declaration, Declarant reserves the right for itself and a Builder to operate commercial vehicles on the Properties for construction purposes.

Section 12. Clotheslines/Flagpoles. No temporary or permanent exterior clothes dryer, clothes line or pole, or similar equipment shall be erected, installed or maintained on any Lot, whether or not it forms a part of any Structure or is detachable therefrom, and no drying or airing of any clothing shall be permitted outdoors. Freestanding flagpoles, other than in connection with the initial sale or marketing of Lots, are prohibited.

Section 13. Prohibited Motor Vehicles. No mini-bike, motor scooter, all-terrain vehicle or similar vehicles are permitted to be operated on any Lot; nor shall any mini-bike, motor scooter, all-terrain vehicle or similar vehicle not otherwise registered with the State of Maryland Motor Vehicle Administration be operated on any portion of the Common Area.

Section 14. Real Estate Sales or Construction Office. Notwithstanding anything contained herein to the contrary, a real estate sales or construction office or a trailer and related signs, may be erected, maintained and operated on any Lot, or in any structure now or hereafter located thereon, provided such office or tailer, and signs, are used and operated only in connection with the development and/or initial sale of any Lot or Lots, and/or the initial construction of improvements on any Lot now or hereafter laid out or created in the Community. Nothing herein, however, shall be construed to permit any real estate sales or construction office, trailer, or sign after such initial development, sales, and/or construction is completed. Except as expressly permitted herein above, neither any part of any Lot, nor any improvement now or hereafter erected on any Lot, shall be used for any real estate sales or construction office or trailer, nor shall any sign used in conjunction with such uses be erected.

Section 15. Antennae. No radio aerial, antenna or satellite or other signal receiving dish, or other aerial or antenna for reception or transmission, shall be placed or kept on a Lot outside of a dwelling, except on the following terms:

a. An Owner may install, maintain and use on its lot one (or, if approved, more than one) Small Antenna (as hereinafter defined) in the rear yard of a dwelling on the Lot, at such location, and screened from view from adjacent dwellings in such manner and using such trees, landscaping or other screening material, as are approved by the Architectural Review Committee, in accordance with Article V. Notwithstanding the foregoing terms of this subsection, (i) if the requirement that a Small Antenna installed on a Lot be placed in the rear yard of a dwelling would impair such Small Antenna’s installation, maintenance or use, then it may be installed, maintained and used at another approved location on such Lot where such installation, maintenance or use would not be impaired; (ii) if and to the extent that the requirement that such Small Antenna be screened would result in any such impairment, such approval shall be on terms not requiring such screening; and (iii) if the prohibition against installing maintaining and using more than one (1) Small Antenna on a Lot would result in any such impairment, then such Owner may install on such Lot additional Small Antenna as are needed to prevent such impairment (but such installation shall otherwise be made in accordance with this subsection).

b. In determining whether to grant any approval pursuant to this Section, neither Declarant, the architectural control committee nor the Board of Directors shall withhold such approval, or grant it subject to any condition, if and to the extent that doing so would result in an impairment.

c. As used herein, (i) “impair” has the meaning given it in 47 Code of Federal Regulations Part 1, section 1.4000, as hereafter amended; and (ii) “Small Antenna” means any antenna (and accompanying mast, if any) of a type, the impairment of the installation, maintenance or use of which is the subject of such regulation. Such antennae are currently defined thereunder as, generally, being one (1) meter or less in diameter or diagonal measurement and designed to receive certain types of broadcast or other distribution services or programming.

Section 16. Restrictions on Further Subdivision. No Lot upon which a single family dwelling unit has been constructed shall be further subdivided or separated into smaller Lots by any Owner, and no portion less than the whole of any such Lot shall be conveyed or transferred by an Owner, provided that this shall not be construed to prohibit deeds of correction, deeds to resolve boundary line disputes and similar corrective instruments.

Section 17. Lease Agreements. All lease agreements with respect to any Lot or any Structure located thereon shall be in writing and submitted to the Board of Directors of the Association for approval. The minimum term of all lease agreements shall be six (6) months, and shall state that the lease agreement shall be subject to this Declaration. Current copies of any lease must be supplied to the Association. Owners who do not reside on their Lot must provide current addresses and phone numbers of the Owners and any occupants of the improvements on their respective Lot to the Association.

Section 18. Tree Removal. No Owner shall have the right to remove any of the healthy growing trees located on any of the Lots within the subdivision except upon approval of the Board of Directors or architectural control committee except for the purpose of building a house or related structure.

Section 19. Utilities. All exterior mechanical and electrical equipment other than heat pumps and utility meters must be housed or screened from view from streets, home entries and neighboring Lots. No window unit air conditioners shall be permitted.

Section 20. Awnings. Awnings are not permitted over the windows, doors or front porch of any dwelling on a Lot. Retractable awnings shall be permitted over a deck or patio located on the rear elevation of a dwelling on a Lot. Prior to erection of an awning, the Owner must make a written request for review and approval of the awning location and style by the Architectural Review Committee as provided for in Article V hereof.

Section 21. Driveways. On-Lot driveways and parking pads shall be maintained by each Owner of a Lot in good condition and in accordance with all applicable laws. Driveways shall be paved and or repaved with the same material as the original construction unless another material is approved in advance by the Architectural Review Committee as provided for in Article V hereof. Gravel surfaces are prohibited. Every driveway shall provide positive drainage away from the dwelling on the Lot.

Section 22. Non-Interference With Utilities. No structure, fence, planting or other improvement shall be placed or permitted to remain upon any Lot which may damage or interfere with any easement for the installation or maintenance of utilities, or in any private or public access easement, utility easement or buffer area (except as noted on the record plats for the Property or permitted by applicable authorities) or which may unreasonably change, obstruct or retard direction or flow of any drainage channels.

Section 23. No Hunting. No hunting or discharge of firearms or weapons of any nature whatsoever shall be permitted on the Property or any Lot.

Section 24. Play Equipment. All outdoor play equipment shall consist of cedar, redwood or pressure-treated wood materials, or hi-grade plastic materials, shall be situated in rear yards only, and shall be placed in order to minimize their visibility from neighboring Lots. The Board of Directors or its Architectural Review Committee may, in its sole and absolute discretion, consider other materials for play equipment. Children’s play and similar equipment not attached shall not be allowed to remain overnight within any front yard of any Lot or at any time within the Common Area. No play equipment, including, without limitation, basketball backboards, basketball hoops and other equipment associated with either adult or juvenile recreation shall be attached in any manner to the front or sides of any dwelling. Basketball backboards either: a) located in the rear yard of the Lot; or b) affixed to permanent or temporary free-standing poles are allowed.

Section 25. Grading; Drainage. No Lots shall be used or maintained so as to cause excessive erosion of soil or sediment. During the grading and construction of any improvements upon any Lot, adequate arrangements shall be made to insure that no erosion of soil or sediment shall take place. Drainage from roof areas shall be channeled to downspouts and appropriately discharged.

Section 26. Additional Rules and Regulations. The Board of Directors, pursuant to Article XIV of this Declaration, may adopt additional rules and regulations pertaining to the use of Lots, as the Board of Directors deems appropriate.

ARTICLE VII: ADDITIONAL USE RESTRICTIONS – DETACHED UNIT LOTS

Section 1. Swimming Pools. A swimming pool and related equipment (collectively a “Swimming Pool”) is permitted on each Detached Unit Lot provided that: (i) the Detached Unit Lot constraints permit the construction of a Swimming Pool; and (ii) all required governmental approvals from Harford County, Maryland and the State of Maryland, including, but not limited to fencing requirements, are obtained; (iii) no part of any Swimming Pool is located or constructed within any easement area shown on any subdivision plat of the Property; and (iv) the top of the Swimming Pool does not project above the finished grade of the lawn area surrounding it; i.e., no above ground Swimming Pools shall be permitted. All permitted Swimming Pools must first be approved pursuant to Article V of this Declaration. No Swimming Pool shall be erected or maintained by any person or person, corporation or association on any Detached Unit Lot unimproved by a single-family dwelling unit or on any Attached Unit Lot.

Section 2. Hot Tubs/Jacuzzis. Hot tubs, spas and Jacuzzis shall be permitted on any Detached Unit Lot provided that: (i) all required governmental approvals from Harford County, Maryland and the State of Maryland are obtained; and (ii) no part of any hot tub, spa or Jacuzzi is located or constructed within any area on an Detached Unit Lot other than in the rear yard of any Lot. All permitted hot tubs, spas and Jacuzzis must first be approved pursuant to Article V of this Declaration.

Section 3. Fences. Any fence constructed on a Detached Unit Lot shall be constructed of pressure-treated lumber or long-life cedar or redwood, Trex or similar material, or white PVC materials and either solid board or split rail or similar type fencing, or as set forth in rules established pursuant to Article VII, Section 5 hereof, but in no event may any fences be chain link, barbed wire, wire mesh, or any similar type fencing. Any fence must be of the same material as any deck constructed on a Detached Unit Lot. Prior to erection of a fence, the Owner must make a written request for review and approval of the fence location and style by the Architectural Review Committee as provided for in Article V hereof. No fence shall extend in front of the rear building line of any Detached Unit Lot. No fence on a Detached Unit Lot may exceed six (6) feet in height.

Section 4. Decks, Patios, Screened Porches. Decks, patios and screened porches may be built on any Detached Unit Lot only with the approval of the Architectural Review Committee pursuant to Article V, and upon obtaining a valid building permit from Harford County, Maryland. Decks and porches shall not extend forward of the rear foundation wall into any front or side yard, shall not impede surface drainage and shall comply in all respects with the height, setback and other requirements of the appropriate authorities. Decks shall be decorative in character and shall be constructed of pressure-treated lumber or long-life cedar or redwood, Trex or other similar material. Decks may be painted or stained to match the color of the Detached Unit. Any deck must be of the same material as any fence constructed on a Detached Unit Lot.

Section 5. Additional Rules and Regulations. The Board of Directors, pursuant to Article XIV of this Declaration, may adopt additional rules and regulations pertaining to the use of Detached Unit Lots, as the Board of Directors deems appropriate.

ARTICLE VIII: USE RESTRICTIONS – ATTACHED UNIT LOTS

Section 1. Swimming Pools. Swimming Pools shall not be permitted on any Attached Unit Lot.

Section 2. Hot Tubs/Jacuzzis. Hot tubs, spas and Jacuzzis shall be permitted on any Attached Unit Lot provided that: (i) all required governmental approvals from Harford County, Maryland and the State of Maryland are obtained; and (ii) no part of any hot tub, spa or Jacuzzi is located or constructed within any area on an Attached Unit Lot other than in the rear yard of any Lot. All permitted hot tubs, spas and Jacuzzis must first be approved pursuant to Article V of this Declaration.

Section 3. Fences. Any fence constructed on an Attached Unit Lot shall be constructed of pressure-treated lumber or long-life cedar or redwood, Trex or similar material, or white PVC materials shall be a solid board or fencing, or as set forth in rules established pursuant to Article VII, Section 5 hereof, but in no event may any fences be chain link, barbed wire, wire mesh, or any similar type fencing. Prior to erection of a fence, the Owner must make a written request for review and approval of the fence location and style by the Architectural Review Committee as provided for in Article V hereof. No fence shall extend in front of the rear building line of any Detached Unit. Any fence on a Detached Unit Lot must be, but cannot exceed, six (6) feet in height.

Section 4. Decks, Patios, Screened Porches. Decks, patios and screened porches may be built on any Attached Unit Lot only with the approval of the Architectural Review Committee pursuant to Article V, and upon obtaining a valid building permit from Harford County, Maryland. Decks and porches shall not extend forward of the rear foundation wall into any front or side yard, shall not impede surface drainage and shall comply in all respects with the height, setback and other requirements of the appropriate authorities. Decks shall be decorative in character and shall be constructed of pressure-treated lumber or long-life cedar or redwood, Trex or other similar material. Decks may be painted or stained to match the color of the Attached Unit. Any deck must be of the same material as any fence constructed on an Attached Unit Lot.

Section 5. Additional Rules and Regulations. The Board of Directors, pursuant to Article XIV of this Declaration, may adopt additional rules and regulations pertaining to the use of Attached Unit Lots, as the Board of Directors deems appropriate.

ARTICLE IX: LAWN MAINTENANCE EASEMENTS

The Board of Directors, its agents or licensees, shall have the right, but not the duty to enter upon any Lot, but not the interior of any building or fenced-in area of any yard, for the purpose of mowing and lawn maintenance in the event a homeowner fails to mow or otherwise maintain his or her Lot, at the expense of the Lot Owner, which expense shall constitute a fine in the amount of Fifty Dollars ($50.00) against the Owner and which shall, if not paid within thirty (30) days of demand, be subject to enforcement in the same manner as assessments under Article IV herein.

ARTICLE X: ADDITIONAL EASEMENTS

Section 1. Drainage and Utility Easements. Perpetual easements for the installation and maintenance of utilities and surface and sub-grade drainage facilities are reserved for the Declarant and Association in the areas designated as “Drainage and Utility Easement”, “D&U Easement”, “Existing Drainage and Utility Easement”,, “Drainage and Utility Easement and HOA Maintenance Area’, “47.5′ Drainage and Utility Easement”, “40′ Drainage and Utility Easement”, “37.5′ Drainage and Utility Easement”, “35′ Drainage and Utility Easement”, “30′ Drainage and Utility Easement”, “26′ Drainage Utility and Access Easement”, ’25’ Drainage and Utility Easement”, “25′ Drainage and Utility Easement, Common Drive Easement for Lots 591 and 592, and SWM Access Easement” “20′ Drainage and Utility Easement”, “20′ Drainage and Utility Public Access Easement”, “20′ Drainage and Utility Easement and HOA Maintenance Area”, “15′ Drainage and Utility Easement”, “15′ Drainage and Utility Easement (Typical, Side)”, “10′ Drainage and Utility Easement (Typical, Rear)”, “10′ Drainage and Utility Public Access Easement”, “10′ D&U Esmt.”, “6′ Drainage, Utility and Public Access Easement” and “5′ Drainage and Utility Easement” or similar designation as shown on the Plats. Additionally, such easements may be created within the Common Area by the Declarant and conveyed to the appropriate public agency, authority or utility without the consent of the members so long as the Declarant, (or its successors and assigns), is a member. Within these easements, no structure, planting or other material shall be placed or permitted to remain which may damage or interfere with the installation and maintenance of utilities or which may change the direction of flow or drainage channels in the easements or which may obstruct or retard the flow of water through drainage channels in the easements. Declarant shall not be responsible to repair or replace any structure, planting or other material located within the easement area in violation of this Section which is rernoved. Easements within the boundaries of a Lot shall be regularly maintained by the Owner of the Lot.

Section 1.1. Notwithstanding anything to the contrary herein, the Association shall have the obligation to maintain any storm drain lines or structures located within the areas designated as: a) “Drainage and Utility Easement and HOA Maintenance Area” on the lots designated as Lots 3024, 3025, 3026 and 3027 on the Plat entitled “FINAL PLAT ONE – PHASE 3 BEECH CREEK (Formerly Beechtree Estates)”, which plat is recorded among the Land Records of Harford County, Maryland at Plat Book Liber J.J.R. No. 138, folio 79; b) “Drainage and Utility Easement and HOA Maintenance Area” on the lots designated as Lots 3028, 3029, 3030, 3031 and 3032 on the Plat entitled “FINAL PLAT TWO – PHASE 3 BEECH CREEK (Formerly Beechtree Estates)”, which plat is recorded among the Land Records of Harford County, Maryland at Plat Book Liber J.J.R. No. 138, folio 80; c) “Drainage and Utility Easement and HOA Maintenance Area” on the lots designated as Lots 3034, 3035, 3036, 3037, 3038, 3039 and 3040 on the Plat entitled “FINAL PLAT FOUR – PHASE 3 BEECH CREEK (Formerly Beechtree Estates)”, which plat is recorded among the Land Records of Harford County, Maryland at Plat Book Liber J.J.R. No. 138, folio 82; d) “Drainage and Utility Easement and HOA Maintenance Area” on the lots designated as Lot 3045 on the Plat entitled “FINAL PLAT FIVE – PHASE 3 BEECH CREEK (Formerly Beechtree Estates)”, which plat is recorded among the Land Records of Harford County, Maryland at Plat Book Liber J.J.R. No. 138, folio 83; e) “10′ Drainage and Utility Easement and HOA Maintenance Area” and “20′ Drainage and Utility Easement and HOA Maintenance Area” on the lots designated as Lots 3083, 3084, 3099 and 3100 on the Plat entitled “FINAL PLAT NINE – PHASE 3 AND CORRECTED LOTS 472, 473 AND 474 PLAT TEN – PHASE I BEECH CREEK (Formerly Beechtree Estates)”, which plat is recorded among the Land Records of Harford County, Maryland at Plat Book Liber J.J.R. No. 138, folio 88; f) “20′ Drainage and Utility Easement and HOA Maintenance Area” on the lots designated as Lots 3080 and 3081 on the Plat entitled “FINAL PLAT TEN – PHASE 3 BEECH CREEK (Formerly Beechtree Estates)”, which plat is recorded among the Land Records of Harford County, Maryland at Plat Book Liber J.J.R. No. 138, folio 89; g) “10′ Drainage and Utility Easement and HOA Maintenance Area” on the lots designated as Lot 3106 on the Plat entitled “FINAL PLAT ELEVEN – PHASE 3 BEECH CREEK (Formerly Beechtree Estates)”, which plat is recorded among the Land Records of Harford County, Maryland at Plat Book Liber J.J.R. No. 138, folio 90, all of which maintenance shall be paid for out of the Assessments.

Section 1.2. Notwithstanding anything to the contrary herein, the Association shall have the obligation to maintain any storm drain lines or structures located within the areas designated below, all of which maintenance shall be paid for out of the Assessment.

a) “10’Drainage and Utility Easement” on the lots designated as Lots 146 through 156, inclusive, “5′ D&U E” on the lots designated as Lots 149 and “5′ D&U&PA E” on Lot 150 on the Plat entitled “REVISED FINAL PLAT ONE – PHASE TWO “A” BEECH CREEK (Formerly Beechtree Estates)”, which plat is recorded among the Land Records of Harford County, Maryland at Plat Book Liber J.J.R. No. 139, folio 88;

b) “10′ D&U E (Typ. Rear)” on the lots designated as Lots 230 through 244, inclusive and “5′ D&U E” on Lot 269 on the Plat entitled “REVISED FINAL PLAT TWO – PHASE TWO “A” BEECH CREEK (Formerly Beechtree Estates)”, which plat is recorded among the Land Records of Harford County, Maryland at Plat Book Liber J.J.R. No. 139, folio 89;

c) “10′ Drainage and Utility Easement” on the lots designated as Lots 255 through 268, inclusive, Lot 304 and Lots 324 through 331, inclusive and “7.5′ D&U E” on Lot 268 on the Plat entitled “REVISED FINAL PLAT ONE – PHASE TWO “B” BEECH CREEK (Formerly Beechtree Estates)”, which plat is recorded among the Land Records of Harford County, Maryland at Plat Book Liber J.J.R. No. 139, folio 90;

d) “20′ Drainage and Utility Easement” on the lot designated as Lot 303 and “7.5′ D&U E” on Lot 280 on the Plat entitled “REVISED FINAL PLAT TWO – PHASE TWO “B” BEECH CREEK (Formerly Beechtree Estates)”, which plat is recorded among the Land Records of Harford County, Maryland at Plat Book Liber J.J.R. No. 139, folio 91;

e) “10′ Drainage and Utility Easement” on the lots designated as Lots 368 through 375, inclusive, “7.5′ D&U E” on Lot 281 and “5′ D&U&PA E” on Lot 212 on the Plat entitled “REVISED FINAL PLAT ONE – PHASE TWO “C” BEECH CREEK (Formerly Beechtree Estates)”, which plat is recorded among the Land Records of Harford County, Maryland at Plat Book Liber J.J.R. No. 139, folio 92;

f) “10′ Drainage and Utility Easement” on the lots designated as Lots 296, 315, 323 and 361 through 367, inclusive, on the Plat entitled “REVISED FINAL PLAT TWO – PHASE TWO “C” BEECH CREEK (Formerly Beechtree Estates)”, which plat is recorded among the Land Records of Harford County, Maryland at Plat Book Liber J.J.R. No. 139 , folio 93;

g) “10′ Drainage and Utility Easement” on the lot designated as Lot 340 on the Plat entitled “REVISED FINAL PLAT THREE – PHASE TWO “C” BEECH CREEK (Formerly Beechtree Estates)”, which plat is recorded among the Land Records of Harford County, Maryland at Plat Book Liber J.J.R. No. 139, folio 94;

h) “10′ Drainage and Utility Easement” on the lot designated as Lot 169 and “10′ D&U E” on Lots 332 through 339, inclusive, on the Plat entitled “REVISED FINAL PLAT FOUR – PHASE TWO “C” BEECH CREEK (Formerly Beechtree Estates)”, which plat is recorded among the Land Records of Harford County, Maryland at Plat Book Liber J.J.R. No. 139, folio 95;

i) “10′ D&U E” on Lots 376 through 378, inclusive, on the Plat entitled “REVISED FINAL PLAT one – PHASE TWO “D” BEECH CREEK (Formerly Beechtree Estates)”, which plat is recorded among the Land Records of Harford County, Maryland at Plat Book Liber J.J.R. No. 139, folio 96;

j) “10′ D&U E (Typ. Rear)” on Lots 379 through 386, inclusive, on the Plat entitled “REVISED FINAL PLAT TWO – PHASE TWO “D” BEECH CREEK (Formerly Beechtree Estates)”, which plat is recorded among the Land Records of Harford County, Maryland at Plat Book Liber J.J.R. No. 139, folio 97.

Section 1.1. Notwithstanding anything to the contrary herein, the Association shall have the obligation to maintain any storm drain lines or structures located within the areas designated as: a) “20′ Drainage and Utility Easement” on the lots designated as Lots 4091 and 4092 on the Plat entitled “FINAL PLAT ONE – PHASE 4 BEECH CREEK (Formerly Beechtree Estates)”, which plat is recorded among the Land Records of Harford County, Maryland at Plat Book Liber J.J.R. No. 144 , folio 80; b) “20′ Drainage and Utility Easement” on the lots designated as Lots 4088 and 4089 on the Plat entitled “FINAL PLAT FOUR – PHASE 4 BEECH CREEK (Formerly Beechtree Estates)”, which plat is recorded arnong the Land Records of Harford County, Maryland at Plat Boot Liber J.J.R. No. 144, folio 83; c) “10′ Drainage and Utility Easement (Typ. Rear)” on the lot designated as Lot 4154 on the Plat entitled “FINAL PLAT FIVE – PHASE 4 BEECH CREEK (Formerly Beechtree Estates)”, which plat is recorded among the Land Records of Harford County, Maryland at Plat Book Liber J.J.R. No. 144, folio 84; d) “15′ Drainage and Utility Easement” on the lots designated as Lots 4154 and 4155 on the Plat entitled “FINAL PLAT FIVE – PHASE 4 BEECH CREEK (Formerly Beechtree Estates)”, which plat is recorded among the Land Records of Harford County, Maryland at Plat Book Liber J.J.R. No. 144, folio 84; e) “10′ Drainage and Utility Easement (Typ. Rear)” on the lots designated as Lots 4115 and 4116 on the Plat entitled “FINAL PLAT SIX – PHASE 4 BEECH CREEK (Formerly Beechtree Estates)”, which plat is recorded among the Land Records of Harford County, Maryland at Plat Book Liber J.J.R. No. 144, folio 85; f) “20′ Drainage and Utility Easement” and “10′ Drainage and Utility Easement (TYP. Rear)” on the lots designated as Lots 4141 and 4142 on the Plat entitled “FINAL PLAT SEVEN – PHASE 4 BEECH CREEK (Formerly Beechtree Estates)”, which plat is recorded among the Land Records of Harford County, Maryland at Plat Book Liber J.J.R. No. 144, folio 86; and g) “20′ Drainage and Utility Easement” on the lots designated as Lots 4051, 4052 and 4054 on the Plat entitled “FINAL PLAT ELEVEN – PHASE 4 BEECH CREEK (Formerly Beechtree Estates)”, which plat is recorded among the Land Records of Harford County, Maryland at Plat Book Liber J.J.R. No. 144, folio 90, all of which maintenance shall be paid for out of the Assessments.

Section 2. Declarant’s Easement to Correct Drainage. For a period of seven (7) years from the date of conveyance of the first Lot, the Declarant reserves a blanket easement and right on, over and under the ground of every Lot to maintain and to correct drainage of surface water in order to maintain reasonable standards of health, safety and appearance. Such right expressly includes the right to cut any trees, bushes or shrubbery, make any gradings of the soil, or to take any other similar action reasonably necessary, following which the Declarant shall restore the affected property to its original condition as near as practicable. The Declarant shall give reasonable notice of intent to take such action to all affected Lot Owners, unless, in the opinion of the Declarant, an emergency exists which precludes such notice. This provision shall not be construed as an agreement by the Declarant to undertake any such work.

Section 3. Project Development Sign Easement. An easement for the installation, maintenance, repair and replacement of Project Development Signs and associated landscaping are hereby reserved to the Association in any Common Area.

Section 4. HOA Maintenance Easements. Perpetual easements for the maintenance of storm water management swales are reserved to the Declarant and the Association in the areas designated on the Plats as “26′ H.O.A. Maintenance Easement”, “20′ Drainage and Utility Easement and HOA Maintenance Area”, “10′ HOA Drainage and Utility Easement”, “Drainage and Utility Easement and HOA Maintenance Area” and “H.O.A. Maintenance Area”.

Section 5. Landscape Buffer Easement. Perpetual easements to install and maintain landscaping buffers are reserved to the Declaration and the Association in the area designated as “10′ Landscape Bufferyard” on the plats entitled “FINAL PLAT FIVE – PHASE I BEECHTREE ESTATES” and “FINAL PLAT TEN – PHASE I BEECHTREE ESTATES” which plats are recorded among the Land Records of Harford County, Maryland at Plat Book Liber J.J.R. No. 134, folio 74 and 79, respectively.

Section 6. Pedestrian Access Easements. Perpetual Easements for pedestrian access are reserved in the areas designated as “26′ Drainage, Utility and Access Easement”, “20′ Drainage and Utility Public Access Easement”, “10′ Drainage, Utility and Public Access Easement”, “10′ Pedestrian Access Easement”, “6′ Drainage Utility and Public Access Easement”, “6′ Wide Pedestrian Access Easement” as shown on the Plats.

Section 7. Construction Easement. A blanket easement is hereby reserved to the Declarant and each Builder to enter and utilize the Property during the period of construction and sales within the Community, and to maintain such facilities and perform such operations as in the sole opinion of the Declarant or Builder, as applicable, may be reasonably required, convenient or incidental to the construction and sale of residences, including, without limitation, business offices, sales and/or rental offices, storage areas, construction yard, signs, displays and model units.

ARTICLE XI: PARTY WALLS

Section 1. General Rules of Law to Apply. Each wall which is built as a part of the original construction of an Attached Unit upon the Properties and placed on the dividing line between the Attached Unit Lots shall constitute a party wall and, to the extent not inconsistent with the provisions of this Article, the general rules of law regarding party walls and liability for property damage due to negligence or willful acts or omission shall apply thereto.

Section 2. Sharing of Repair and Maintenance. The cost of reasonable repair and maintenance of a party wall shall be equally shared by the owners who make use of the wall.

Section 3. Destruction by Fire or Other Casualty. If a party wall is destroyed or damaged by fire or other casualty, either owner of the Attached Unit sharing said wall may restore it and the other Owner shall contribute one-half (l/2) the cost of restoration thereof without prejudice, however, to the right of any such Owner to call for a larger contribution from the other under any rule of law regarding liability for negligent or willful acts or omissions.

Section 4. Weatherproofing. Notwithstanding any other provision of this Article, an Owner who by his negligent or willful act causes the party wall to be exposed to the elements shall bear the whole cost of furnishing the necessary protection against such elements.

Section 5. Right to Contribution Runs with Land. The right of any Attached Unit Owner to contribution from any other Attached Unit Owner under this Article shall be appurtenant to the land and shall pass to such Attached Unit Owner’s successors in title.

Section 6. Fences. The provisions of this Article shall apply to each fence which is built as a part of the original construction of the improvements on a Attached Unit Lot and placed on the dividing line between two or more Attached Unit Lots or partly on one Attached Unit Lot and partly on any other Attached Unit Lot.

ARTICLE XII: ENCROACHMENTS

Section 1. Encroachments. If any Structure or any part thereof, now or at any time hereafter, encroaches upon an adjoining Lot or any Structure encroaches upon any Common Area, whether such encroachment is attributable to construction, settlement or shifting of the Structure or any other reason whatsoever beyond the control of the Board of Directors or any Owner, there shall forthwith arise, without the necessity of any further or additional act or instrument, a good and valid easement for the maintenance of such encroachment, for the benefit of the Owner, its heirs, personal representatives and assigns, to provide for the encroachment and nondisturbance of the Structure. Such easement shall remain in full force and effect so long as the encroachment shall continue. The conveyance or other disposition of a Lot shall be deemed to include and convey, or be subject to, any easements arising under the provisions of this Article without specific or particular reference to such easement.

Section 2. Easement for Exterior Maintenance. If any dwelling is situated on or near a Lot line such that proper exterior maintenance and repair of the dwelling cannot reasonably be accomplished exclusively on such Owner’s Lot, then that Owner shall have an easement over that portion of the adjoining Lot as is reasonably necessary for such exterior maintenance and repair, including, but not limited to, painting, cleaning and washing and repairing windows. The provisions of this Section and this Article shall also apply to any part of any dwelling unit upon the Property which is built as apart of the original construction of any dwelling unit and which is constructed in such a manner that the part or element of construction is located partially on one Lot and partially on another Lot, for example, roofing, siding or stonework.

ARTICLE XIII: STREET TREES

For a period of ten (10) years from the date of the initial recordation of a deed in the Land Records of Harford County conveying a Lot from Declarant, Declarant, its agents and/or contractors, shall be permitted, but shall not be required, to enter upon that ten foot (10′) wide strip of land located on that part of every Lot adjacent to any road right of way bordering that Lot for the purpose of planting trees on the Lot (the “Trees”). Such entry shall not interfere with the Lot Owner’s means of ingress and egress to and from his or her Lot. Once planted on a Lot, the Trees shall become the property of the Owner of that Lot. Once planted, neither the Declarant, nor the Association shall have any responsibility to maintain or replace the Trees. No Tree planted by Declarant, its agents and/or contractors hereunder shall be removed, replaced or transplanted without the prior written approval of Harford County, Maryland.

ARTICLE XIV: RULES AND REGULATIONS

Section 1. Board of Directors Authorized to Adopt; Scope. The Board of Directors shall have the power to adopt rules and regulations which shall be binding on each Lot Owner pertaining to the development of the Properties; the control and use of the Amenities and Common Area; levying of fines and penalties; maintenance and use restrictions applicable to Lots and improvements thereon as set forth in Articles V, VI and VII herein; and procedures whereby the Association may maintain or remove structures, grass, weeds or trees on Lots which the Owner thereof fails to maintain in a safe and sanitary condition as provided in Article IX herein.

Section 2. Notice. The Board of Directors shall mail to each of the members of the Association written notice of any rules or regulations adopted by the Board at least twenty (20) days prior to the effective date of the rules or regulations. Such notices shall be mailed to the address of each member as shown on the most current membership roster of the Association.

Section 3. Adoption; Amendment; Referendum. The adoption or amendment of rules and regulations shall require the vote of two-thirds (2/3) of the Directors present. However, a number of Association members equal to not less than twenty percent (20%) of the members of the Association may petition a referendum on the rules and regulations by filing a written petition with the Board of Directors within twenty (20) days after the mailing of a notice of adoption by the Board. Upon verifying that the requirements of this section have been met, the rules and regulations shall be suspended pending the results of the referendum. The rules and regulations shall be submitted to a vote of the members at a meeting called for this purpose within sixty (60) days after the petition has been verified. The rules and regulations shall be adopted by a vote of a majority of a quorum of members.

ARTICLE XV: GENERAL PROVISIONS

Section 1. Enforcement. The Declarant, Association or any Owner shall have the right to enforce, by any proceeding at law or in equity, all restrictions, conditions, covenants, reservations, liens and charges now or hereafter imposed by the provisions of this Declaration. In the event such enforcement proceedings are instituted by the Association, the Owner against whom such a proceeding is instituted shall pay all management costs, fines, court costs and actual attorneys’ fees incurred by the Association in connection therewith. Failure by the Declarant, the Association or by any Owner to enforce any covenant or restriction herein contained shall in no event be deemed a waiver of the right to do so thereafter.

Section 2. Additional Rights of Declarant. ln view of the fact that the construction of the development is one which will take the Declarant several years to complete, the Declarant, in addition to all rights reserved to it under this Declaration, and notwithstanding any other provision of the Declaration, specifically reserves the right to use any and all portions of the Properties, including Amenities and/or Common Area which may have been previously conveyed to the Association, for all reasonable purposes necessary or appropriate for the full and final completion of development of the Properties subject to the jurisdiction of the Association.

Section 3. Severability. Invalidation of any one of these covenants or restrictions by judgment or court order shall in no way affect any other provisions which shall remain in full force and effect.

Section 4. Amendment. The covenants and restrictions of this Declaration shall run with and bind the land for a term of twenty (20) years from the date this Declaration is recorded, after which time they shall be automatically extended for successive periods of ten (10) years. No amendment to this Declaration, the Bylaws or the Articles of Incorporation may be recorded, which affects the Builder’s rights or obligations while the Builder has any of the Properties under contract or owns any portion of the Properties without the Builder’s prior written consent. Further, subject to the provisions of Article XV, Section 5 herein, and the right of Harford County set forth herein, the Declarant alone may amend the Declaration during the first ten (10) years from the date hereof and thereafter, by an instrument signed by not less than seventy-five percent (75%) of the Lot Owners. The provisions of Article XIII shall not be amended without the express, written consent of Harford County, Maryland. Any amendment or termination must be recorded among the Land Records of Harford County in order to be effective.

Section 5. Annexation. Declarant shall have the right, but not the duty, to subject all or any part of the land described in Exhibit C attached hereto as a part hereof, to this Declaration without the approval or consent of any Lot Owner. Additional property (not shown on Exhibit C) may be annexed to the Property with the consent of two-thirds (2/3) of the members. An annexation authorized herein shall not become effective until a supplementary declaration containing a specific description of the annexed property is recorded among the Land Records of Harford County.

Section 6. Notice of Assessments for Sewer and Water Facilities. There shall be recorded in Land Records of Harford County a Declaration of Sewer and Water Facility Charges (the “Utilities Declaration”) for the Beechtree Estates subdivision which creates a system of assessments to defray the cost of installation of sewer and water facilities for Beechtree Estates subdivision. The Utilities Declaration provides for assignment of the right to collect sewer and water facilities charges (the “Facilities Charges”) to Beechtree Water and Sewer Utility Company, LLC, a Maryland limited liability company, and its successors and assigns. The initial contract covering the sale of a home on any Lot, and every subsequent contract for sale of a home on any Lot is intended to contain the required statutory notice under §14-117 of the Real Property Article of the Maryland Annotated Code, as amended from time to time. It shall be the responsibility of the seller in each such contract to include such notice in the contract. The form of the notice shall be as follows:

“NOTICE TO PURCHASERS OF REAL ESTATE IN BEECHTREE ESTATES

THIS PROPERTY IS SUBJECT TO A FEE OR ASSESSMENT CHARGED UNDER A DECLARATION AND AGREEMENT FOR WATER AND SEWER FACILITTES CHARGES (THE “UTILITIES DECLARATION”), WHICH IS RECORDED AMONG THE LAND RECORDS OF HARFORD COUNTY, MARYLAND AT LIBER J.J.R. NO. 8723, FOLIO 256, AND AN ASSIGNMENT OF DECLARATION AND AGREEMENT WHICH IS RECORDED AMONG THE LAND RECORDS OF HARFORD COUNTY, MARYLAND AT LIBER J.J.R. NO. 8723, FOLIO 271 FOR WATER AND SEWER FACITILTES CHARGES WHICH PURPORTS TO COVER OR DEFRAY THE COST OF INSTALLING ALL OR PART OF THE PUBLIC WATER OR SEWER FACILITIES CONSTRUCTED BY THE DEVELOPER OF THE SUBDIVISION KNOWN AS BEECHTREE ESTATES. THIS FEE OR ASSESSMENT IS ONE DOLLAR ($1.00) FOR THE FIRST YEAR AND FOUR HUNDRED DOLLARS ($400.00) PER YEAR FOR THE NEXT FORTY (40) YEARS FOR A SINGLE FAMILY LOT (AS DEFINED IN THE UTILITIES DECLARATION) AND TWO HUNDRED DOLLARS ($200.00) PER YEAR FOR THE NEXT FORTY (40) YEARS FOR A TOWNHOME LOT (AS DEFINED IN THE UTILITIES DECLARATION), PAYABLE ANNUALLY IN THE MONTH OF JANUARY TO BEECHTREE WATER AND SEWER UTILITY COMPANY, LLC AS ASSIGNEE OF STEPNEY ROAD HOLDING, LLC (HEREINAFTER CALLED “LIENHOLDER”), COMMENCING ON THE FIRST DAY OF JANUARY IMMEDIATELY FOLLOWING YOUR SETTLEMENT OR CLOSING UPON THIS CONTRACT OF SALE (THE “COMMENCEMENT DATE”), THROUGH AND INCLUDING THE DATE WHICH IS FORTY-ONE (41) YEARS AFTER THE COMMENCEMENT DATE. THERE MAY BE A RIGHT OF PREPAYMENT OR DISCOUNT FOR EARLY PAYMENT WHICH MAY BE ASCERTAINED BY CONTACTING THE LIENHOLDER. THE FEE AND ASSESSMENT IS A CONTRACTUAL OBLIGATION BETWEEN THE LIENHOLDER AND EACH OWNER OF THIS PROPERTY, THAT RUNS WITH THE LAND, AND IS NOT IN ANY WAY A FEE OR ASSESSMENT OF HARFORD COUNTY.”

Each record owner, by acceptance of a Deed hereafter conveying any Lot to it, whether or not so expressed in such Deed or other conveyance shall be deemed to have covenanted and agreed to pay to Beechtree Water and Sewer Utility Company, LLC or its successors or assigns, the fees and assessments established by the Utilities Declaration.

Section 7. Special Conditions of Property. All Owners are advised that the Lot and any dwelling constructed thereon that are part of the Community is located near the Aberdeen Proving Ground-Edgewood Arsenal. The Aberdeen Proving Ground (“APG”) was established in 1917 and has been involved in the development, testing and production of a variety of materials for the Army, including biological and chemical weapon systems. While activity at APG has led to the development of many beneficial materials and machines, it has also led to some environmental contamination of portions of the APG property. In addition, as the result of years of ordnance firing and testing, there are areas on the base where unexploded ordnance is lodged. General information about APG can be found on the APG home page at www.apg.army.mil/. Information about environmental concerns can be obtained at the APG Installation and Restoration Program website at www.apg.army.mil/garrison/safety-environ/restor/index.htm. This website contains information about the environmental remediation programs being undertaken at APG.

Section 8. Notice of Special Taxes. The initial contract covering the sale of a home on any Lot, and every subsequent contract for sale of a home on any Lot is intended to contain the required statutory notice under §10-706 of the Real Property Article of the Maryland Annotated Code, as amended from time to time. It shall be the responsibility of the seller in each such contract to include such notice in the contract. The form of the notice shall be as follows:

“NOTICE REQUIRED BY MARYLAND LAW

The property that is the subject of this contract is located within a special taxing district, which has been created for the purpose of financing or refinancing the costs related to certain infrastructure improvements within the taxing district. These costs will be repaid from the proceeds of special taxes collected from the owners of properties located within the special taxing district.

State law requires that the seller disclose to you, at or before the time you enter into this contract, the following information: (1) a description of the area included within the special taxing district, (2) the maximum amount of bonds and other obligations to be issued with respect to the special taxing district, (3) a description of the purposes for which the special taxing district was created, and for which the bonds or other obligations have been issued, including a description of any infrastructure improvements, (4) the amount of special taxes levied on the property for the most recent year or, if taxes were not levied on the property for the most recent year, a good-faith estimate of the annual tax that will be levied on the property, (5) the maximum amount of special taxes that may be levied on the property in a year, (6) the projected time period over which any bonds or obligations issued in connection with the special taxing district are to be repaid, and (7) your right as the prospective owner of the property to fully prepay the special taxing district obligations with respect to the property.

You have 7 calendar days from the date you receive the above information relating to the special taxing district to cancel this contract by sending a written notice of cancellation to the seller. You are not required to state a reason for cancelling the contract. Upon cancellation of the contract, you are entitled to a refund of any deposit you may have made under this contract.

A seller may not require that you waive your right to receive the information relating to the special taxing district or your right to cancel the contract within 7 calendar days of receipt of the information. A seller may not require that you close the sale under this contract within 7 calendar days from the date you receive the information relating to the special taxing district.

State law provides that any seller who, in disclosing the information relating the special taxing district, makes any false statement of a material fact or omits a material fact that, in light of the circumstances under which the statements were made, is necessary to make the statements not misleading is liable to the purchaser for damages proximately caused by the seller’s false or omitted statement. Any action for damages caused by the seller’s false statement or omission of a material fact must be brought within 1 year from the date of closing under this contract.

You should carefully review the information relating to the special taxing district provided by the seller to familiarize yourself with your rights and obligations as a prospective owner of property located within the special taxing district.”

Details regarding special taxing district: (the “District”)

1. The property you are purchasing is part of the Beechtree Estates Special Taxing District (the “District”), an approximately 293 acre special taxing district located along Stepney Road in Aberdeen, Harford County, Maryland (the “County”).

2. The maximum amount of bonds and other obligations that are to be issued with respect to the District is $14,000,000 (the “Bonds”).

3. The District was created so that the County could issue bonds, the proceeds of which would be used to finance certain public improvements benefitting the property in the District. The ordinance adopted by the County authorizing the issuance of the Bonds provides that the public improvements may include, but are not limited to, earthwork and other site preparation; construction of water and sewer lines, related appurtenances and acquisition of easements therefor; construction and improvement of roads and acquisition of land therefor; construction and installation of storm water management areas; construction and installation of storm drains; related grading engineering and stakeout; lighting; landscaping; identifying monuments; signage; traffic signals and traffic studies therefor; sidewalks; certain impact fees and infrastructure tap fees; and such other buildings or equipment to be owned by the County or other public improvements; all of which service or enable the development of Beechtree Estates.

4. Special taxes have been levied on the property commencing with the 2010-2011 tax year.

The maximum special tax levied for a single family home in tax year 2010-2011 is $1,649.

The maximum special tax for a townhome in tax year 2010-2011 is $1,087.

For each subsequent tax year, the maximum special tax will increase by 2% over the prior year’s maximum special tax.

A “special tax credit” is applied each year to the maximum special taxes identified above. The credit is equal to a portion of the County property taxes paid by the homeowner based on the increased value of his/her/their land and improvements since January 1, 2009. This special tax credit will reduce the maximum special tax to the “adjusted maximum special tax.” The highest special tax that the homeowner will be required to pay in any year will be the adjusted maximum special tax.

It is anticipated that improvements to the parcel will lead to property tax increases over the level at January 1, 2009 and that the special tax credit will fully offset the maximum special taxes each year. However, if the special tax credit does not fully offset the maximum special tax (which might happen if, for example, there is a substantial reduction in property values that leads to substantially lower property taxes), then the homeowner will be required to pay all or a portion of the adjusted maximum special tax (adjusted as described in the foregoing sentence).

5. The Bonds are expected to be repaid over a period of not greater than thirty years.

6. You may prepay in full any special taxes relating to your property at any time. To receive a calculation of what this amount would be, please contact the District’s Administrator, Municap, Inc., or any successor Administrator appointed by the County. Municap, Inc. may be reached at:

Municap, Inc.
8965 Guilford Road, Ste 210
Columbia, Maryland 21046
Attn: Keenan Rice
Re: Beechtree Estates Development District – Calculation of Special Taxes Prepayment”