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Summary of the

DECLARATIONS OF COVENANTS
CONDITIONS AND RESTRICTIONS

      LAKE SHORE BUILDERS, INC. realizes that the quality, strength and flexibility of the restrictions and covenants of the subdivision is extremely important to its residents.For this reason, we have gone to great lengths to develop a Declaration of Covenants, Conditions and Restrictions that will protect the property owners now and well into the future.

      PURPOSE: This document is intended only as a review of the highlights of the Declaration of Covenants, Conditions and Restrictions filed of record for Highland Ranch. We hope this review will help you to understand the general contents of the Declaration and to be aware of some of the important points. Each owner is responsible for conforming to the Deed Restrictions as filed and should take the time to review them in full.

PREAMBLE

       Establishes that Lake Shore Builders, Inc. desires to protect the values and character of the property within Highland Ranch for the benefit of all future owners. Defines that a Highland Ranch Property Owners Association will be established to enforce the restrictions and carry out all of the business necessary to maintain the subdivision according to the character and quality originally established.

ARTICLE I

DEFINITIONS Primarily defines the legal terms used in the Declaration.

ARTICLE II

RESERVATIONS, EXCEPTIONS AND DEDICATIONS Describes the actual property affected and how additional property may be added to the subdivision. Also limits the use of any lots for oil, gas, or mineral exploration except for the rights of the mineral lease holder upon its designated drill sites.

ARTICLE III

USE RESTRICTIONS: Defines the specific restrictions on the usage of the lots within the subdivision. Some of the major restrictions are:

1. RESIDENTIAL ONLY
2. NO COMMERCIAL
3. TEMPORARY STRUCTURES No mobile homes, shacks, tents, etc. shall be maintained or used as a residence either temporarily or permanently. Allows developer to utilize temporary sales or construction offices during the period of construction and sale.
4. MINIMUM LOT AREA Minimum lot size shall be one (1) acre.
5. EXTERIOR APPEARANCES must be kept and presentable.
6. WATER SERVICE All residential dwellings in this Subdivision shall be equipped with and served by a fresh water system. Non-potable wells are allowed with certain restrictions.
7. SANITARY SEWERS Each Lot owner will install their own septic system in accordance with all governmental regulations.
8. JUNKED MOTOR VEHICLES, ETC., PROHIBITED Abandoned or junked motor vehicles (without current, valid state vehicle inspection sticker and license plate) are prohibited. No junk of any kind, dilapidated structure, shall be kept on any lot.
9. LIVESTOCK AND ANIMALS Livestock is prohibited except that (2) horses per lot may be kept. Some animals being raised for FFA or 4-H programs are permitted (See Section 3.14).

Some of the major requirements for lot improvements are:
1. RESIDENCES 2000 sq. ft. minimum and must be completed within one (1) year of setting the forms. Homes must be constructed of new materials. Exteriors shall be of fifty percent (50%) masonry or its equivalent.
2. MINIMUM SET BACK LINES In most cases the building line is sixty (60) feet from the roads as shown on the plat. Interior set back lines are twenty-five (25) feet along the side and rear of each Lot. There shall be a vegetation preserve of fifty (50) feet along McCaleb Road.
3. DRIVEWAYS shall be constructed of concrete and shall be completed within six (6) months of completion of the main dwelling.
4. WALLS AND FENCES Must be approved prior to construction by the Architectural Control Committee.
5. DRAINAGE Each owner is responsible for maintaining the ditches and drainage ways on his Lot. All culverts shall have headers and must be constructed of brick, stone, or concrete with the prior written consent of the Architectural Control Committee.

ARTICLE IV

       ARCHITECTURAL CONTROL COMMITTEE Establishes that NO IMPROVEMENT shall be made to any Lot until the plans for such improvement is reviewed by the Architectural Control Committee.
Section 4.01 Each application shall be accompanied by two sets of plans and specifications for all proposed construction.
Section 4.02 The authority to grant or withhold architectural control approval is initially invested in the Developer. The authority of the Developer shall terminate upon the election of the Architectural Control Committee.
Section 4.06 Allows for variances which may be approved on a case-by-case basis by the Architectural Control Committee.

ARTICLE V

       HIGHLAND RANCH PROPERTY OWNERS ASSOCIATION All property owners are members of the Property Owners Association. Describes voting procedures, corporate structure; and the business duties and powers of the Association. Defines that the Property Owners Association shall be non-profit and be governed by the Articles of Incorporation and Bylaws of the Association. Its explicit purpose is to protect the general character of the development; maintain and manage the common areas and recreation facilities; and collect and administer the maintenance fund.

ARTICLE VI

       MAINTENANCE FUND Each property owner covenants to pay the Assessments which are established by the Property Owners Association. The assessments shall, in general, be used to maintain, improve and operate the subdivision and its common areas and recreation facilities. The procedures for the collection of any assessments are defined. The Association is given the right to file liens and to foreclose on any property for which assessments are delinquent.

ARTICLE VII

       DEVELOPERS RIGHTS AND RESERVATIONS The Developer reserves the right to construct additional improvements within the Common Area, use the Common Area for signs or temporary buildings, convey additional real property, and annex Common Areas or additional residential property. The Developer shall retain these rights with respect to the Association and the Lakes, and other Common Areas until the Control Transfer Date (see Section 4.02) or written notice to the Association of termination by the Developer.

ARTICLE VIII

       DUTIES AND POWERS OF THE PROPERTY OWNERS ASSOCIATION The Property Owners Association has the duties and powers that may be necessary or desirable to further the common interest of the members, to maintain, improve and enhance the Common Areas and to improve and enhance the attractiveness, desirability and safety of the Subdivision. The Association shall accept title to any Common Areas and other real property transferred to the Association by the Developer.
Section 8.06 Shall levy, collect and enforce the Maintenance Charge.
Section 8.09 May construct improvements on the Property and may demolish existing improvements.
Section 8.11 Has the power to enforce the provisions of the Declaration.
Section 8.12 Has the power to grant easements and to covey property to governmental agencies.

ARTICLE IX

       GENERAL PROVISIONS
Section 9.01 Provisions shall be binding upon all property owners for forty (40) years from the date this Declaration is recorded. It shall be extended for ten (10) year increments unless voted to be amended, changed or canceled by two-thirds (2/3) of the then Owners.
Section 9.03 Developer reserves the right to amend the Declaration prior to the Control Transfer Date.


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Conroe, Texas 77304

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