Condominium Form of Ownership.
A Condominium is a
special form of property ownership which is created and governed in Oregon by statute
(ORS 100.005 to 100.910 and 100.990), known as the Oregon Condominium Act
Condominium is a combination of two kinds of ownership. The Owner of a Condominium Unit holds title
to his or her individual Unit together with an undivided interest in common
with all Unit Owners in the Common Elements, that is, the land, either in fee
simple or a leasehold interest, and those parts of the Building or Buildings
intended for common use such as the foundations, columns, roofs and the like
and may also include other facilities intended to be used by all Unit
Owners. In some cases, the condominium
may have a guesthouse attached or it may include more than one building such as
a primary house and a guesthouse.
Each Unit Owner will be
entitled to the exclusive ownership and possession of his or her Unit. It may be individually conveyed, encumbered,
or it may be disposed of by will or gift.
The undivided interest in the Common Elements is inseparable from the
ownership of the individual Unit.
A Condominium is
created by recording a Declaration of Unit Ownership in the office of the
recording officer of the county in which the property is located. Floor plans of the Buildings showing the
vertical and horizontal boundaries of each Unit in a Building including Unit
designation, location and dimensions of each Unit and the Common Elements to
which each has access, a plat of the property, and a copy of the Bylaws must be
recorded simultaneously with the Declaration.
The Act, the
Declaration and the Bylaws control the rights and obligations of the Unit
Owners with respect to the Common Elements, to each other and to their
respective Units. The provisions of
these documents are intended to be, and in most cases are, enforceable in a
court of law.
The Act requires that
an Association of Unit Owners be organized to serve as a means through which
the Unit Owners may take action with regard to the administration, management
and operation of the Condominium. Each
Unit Owner is automatically a member of the Association.
The Board of Directors
(the “Board”) is the governing body of the Association. Unless you serve as a member of the Board,
hold an office or are on a committee appointed by the Board, your control of
the administration and operation of the Condominium will in most cases be
limited to your right to vote as a member of the Association. There are actions that can be taken by
the Board and the Officers without a vote of the members which can have a
significant impact upon the quality of life for all Unit Owners.
Until there is a sufficient number of purchasers of Units to elect a
majority of the Board, it is likely that the Declarant
will effectively control the affairs of the Association. It is frequently necessary that the Declarant do so during the early stages of development and
the Declarant may reserve certain special rights to
do so in the Declaration and Bylaws. Prospective
purchasers should understand that it is vitally important to all Unit Owners
that the transition from Declarant to Owner control
be accomplished in an orderly manner and in a spirit of cooperation.
In order to provide
funds for the operation and maintenance of the Condominium, the Association
will levy assessments against your Unit.
If you are delinquent in the payment of assessments, the Association may
enforce payment through a court proceeding or your Unit may be liened and sold through a foreclosure proceeding.
expenses of the Association, including the amount you may expect to pay through
assessment, are set forth in the estimated budget included in this Disclosure
When contemplating the
purchase of a Unit in a Condominium, you should consider factors beyond the
attractiveness of the Units themselves. Study
the Declaration and Bylaws. These
documents usually contain important provisions relating to restrictions and
requirements respecting use and occupancy of Units and Common Elements and
rules of conduct. Such restrictions may
relate to such matters as residential use, age, pets and parking. Give careful consideration to whether you
wish to live in an atmosphere of community living where the interest of the
group must be taken into account, as well as the interests of the individual.
As of September
15, 2006, 31 Condominium Units have been platted in Stage One and 29 of the
Condominium Units have closed. 1
Condominium Unit in Stage Two has been annexed and platted into Condominium Ownership for Innisfree Patio Home Condominium to Units and Common
Elements in the manner provided by the Oregon Condominium Act.
GENERAL DESCRIPTION AND CREATION
Corporation, an Oregon corporation (the “Declarant”),
has created a subdivision known as Little Whale Cove, phases one through seven,
in the City of Depoe Bay, Lincoln
County, Oregon. Declarant
subjected Little Whale Cove to the Declaration of Conditions, Restrictions,
Covenants, Easements, Reservations, and Regulations of Little Whale Cove (the
“LWC Declaration) recorded in the official records of Lincoln County, Oregon
at Book 70, Page 74. Declarant
will create a condominium development known as Innisfree
Patio Home Condominium in that portion of the Property described on the attached
Exhibit A to this Declaration, and as
part of the larger Little Whale Cove development. The Condominium will be part of the
development legally described as Revised Tracts B and C, of Replat of Lot 10 and
Tracts (B & C) of LITTLE WHALE COVE NO. 1, in the City of Depoe Bay, Lincoln
County, State of Oregon. Declarant’s team is
an operations and service driven group with a continuous commitment to place
the residents first. This results in the
community exhibiting a unique character that is geared toward the collective
satisfaction of the residents it serves.
offices are located at 5 Mt. Jefferson
Terrace, Lake Oswego Or 97035. The Declarant’s
mailing address is PO Box 1547,
Lake Oswego OR
97035. The Declarant’s
telephone number is (503) 636-0440 and its Fax number is (503) 697-3271. Declarant's Depoe
Bay phone numbers are
(541) 765-2697. The Innisfree
Patio Homes Condominium will consist of 48 detached single family homes.
stage of the Condominium will be created (submitted
to the condominium form of ownership) by the recording of the following
instruments in the Records of Lincoln County, Oregon: (1) Condominium Declaration of Innisfree Patio Home Condominium; (2) Bylaws of Innisfree Patio Home Condominium; and (3) a Plat of Innisfree Patio Home Condominium. Supplemental Declarations and Plats will be
recorded to add Units to the Condominium in the manner described below.
Condominium will consist of a maximum of two stages and forty eight Units. This will be a flexible Condominium in that
the land for the first stage of the Condominium will initially only have six
Units upon it, but will include three variable tracts of property that may be
reclassified by means of supplemental declarations to the category of Units as
construction of each of the Units is completed.
The first stage will have a total of 31Units if all of the land in the
first stage is reclassified to Units as intended. The second stage of the Condominium also will
be annexed to the Condominium by means of a supplemental declaration on or
before December 31, 2009,
unless extended by Declaration amendment but in no event later than December 31, 2011. It is expected that there will be only one
Unit in the second stage of the Condominium at the time of the recording of the
supplemental declaration annexing the second stage land. There will also be variable tracts of land in
the second stage similar to the first stage such that a total of up to 17 Units
will be in the second stage if all the variable tracts are reclassified to
Units as intended. Each Unit will be a house of either one or two stories. In
some cases a Unit may consist of two attached buildings, which could be
separately occupied. Innisfree
Patio Home Condominium (the “Condominium”) Units are of stick construction with
cedar siding. The roof is a composition
shingle. The foundation is
concrete. The Units will contain from
1000 to 2950 square feet of floor area.
The square footage shown on the plat is the first floor only. All Innisfree Patio
Home Condominium homes will have kitchen, dining and living areas. The Declarant reserves the right to change its standard plans
for Units from time to time subject to the foregoing general limitations.
A fee simple
interest in a portion of the Property will be submitted to the Condominium form
of ownership. The “Property” means that
portion specified in the Declaration of the land described as Revised Tracts B
and C, of Replat of Lot 10 and Tracts (B & C) of
LITTLE WHALE COVE NO. 1, in the City of Depoe Bay,
Lincoln County, State of Oregon, but excepting therefrom
that portion to be conveyed to the LWC Association as an addition to its common
area pursuant to Section 5 of the
Declaration, the approximate location of which is as shown on the sketch
attached as Exhibit A. A purchaser of a
Unit in the Condominium will receive a deed which conveys the particular Unit,
together with an undivided interest (with the other Unit Owners) in the Common
Elements as set forth in the Declaration.
Unit Owners will be entitled to an equal undivided
interest in the Common Elements such that if the maximum number
of Units are created then each Owner will have a 1/48th undivided
interest in the Common Elements. Each
Unit’s interest in the common elements shall be inseparable from the Unit and
any conveyance, encumbrance, judicial sale, or other transfer, voluntary or
involuntary of an undivided interest in the Common Elements, shall be void
unless the Unit to which that interest is allocated is also transferred. Declarant reserves the
right to construct Units of different floor plans of either larger or smaller
floor areas than the Unit created by this Declaration, but all Units shall be
consistent with the quality of construction of the initial Unit.
shall be bounded by the exterior surfaces of the home constituting the Unit as
shown on the Plat. Unlike a typical
condominium, the Unit Owners will be responsible for all repairs, replacements,
modifications, or maintenance of their Units except for staining of the
exterior, which will be assessed against the Owner of the appurtenant Unit as
described in Section 14.4 of this Disclosure.
The General Common Elements (the “Common Elements”)
consist of all improvements and land other than the Units and Limited Common
Elements of the Condominium generally consisting of the streets and landscaped
open space areas. Each Unit Owner shall
be entitled to an equal undivided interest in the Common Elements.
Elements are those Common Elements reserved for the use of a certain Unit to
the exclusion of other Units. The yard
surrounding each Unit shall constitute non-transferable Limited Common
Elements, the use of which shall be restricted to the contiguous Unit as shown
on the Plat. Each Limited Common Element
designated on the Plat will be for the exclusive use of the Owner of the
contiguous Unit. Natural vegetation and plants are encouraged and lawns are
prohibited on both general and
limited common areas. The landscaping maintenance of the Limited Common
Element in the front yard of each Unit shall be done by the Association as well
as the staining of the exterior siding of the Units in order to maintain a
consistent exterior appearance of the Unit and its front yard.
The Association may use water from each Unit to
irrigate the landscaped areas until the plant materials are established. The Association shall monitor the need for
staining the exterior siding of the Units in order to maintain a consistent
exterior appearance of the Unit and its front yard.
The Declarant reserves the right to reclassify the variable
tracts in the first stage as shown on the Plat into a maximum of 25 Units with
associated Limited and General Common Elements for a total of 31 Units in the First Stage of the Condominium. The variable tracts are nonwithdrawable,
and such right of conversion and division shall expire seven years from the
date of the conveyance of the first Unit in the condominium to a person other
than the Declarant.
There are no limitations upon the right of the Declarant
to convert the variable tract. Declarant shall record
a supplemental declaration and supplemental plat as the means of such
conversion containing the information required by the Act. The plat shows the location and dimensions of
the variable tracts which are labeled “NONWITHDRAWABLE VARIABLE PROPERTY.” If by the termination date, all or a portion
of the variable tracts designated as “nonwithdrawable
variable property” have not been reclassified, such property shall
automatically be reclassified as of such date as a general common element of
the Condominium and any interest in such variable tracts held for security
purposes shall be automatically extinguished by such classification.
Notwithstanding the termination date, the association may, with respect to any
variable tract automatically reclassified, exercise any rights previously held
by the Declarant. The exercise of any right shall
first be approved by at least a majority of all voting rights. All other
actions relating to such variable tracts reclassified as general common
elements shall be regulated and governed in like manner as other general common
elements of the condominium. If a supplemental declaration and plat is required
for any action, the plat shall be executed by the chairperson and secretary of
the association and shall comply with the requirements of this chapter as to a
supplemental declaration and the recording of plats.
the Declarant in the development of the Innisfree Patio Home Condominium are the following team
Davis Wright Tremaine
L. Murray Consulting
Declarant intends to construct the Units as they are marketed
on a presale basis. The Declarant will install at its expense the private streets,
garbage areas and tennis courts serving the Units as well as the landscaping on
the General Common Elements and the front yards of the Units on a phased basis
as Units are constructed. By the Turnover Meeting, all such
improvements shall be installed other than the landscaping around any future
Declarant intends to sell Condominium
Units on a cash basis.
The purchasers of a newly
constructed Condominium Unit will receive:
(a) one-year seller’s warranties against defects in the plumbing,
electrical, mechanical, structural and all other components of the Units and
Common Elements as provided in ORS 100.185; and (b) an assignment of
any assignable supplier’s warranties.
There will be no implied warranties.
Initial Monthly Common Expense Budget.
Declarant is projecting an initial monthly common expense
budget of the Association of Unit Owners as follows:
WORKING CAPITAL INCOME and EXPENSES
INCOME (working capital)
Per Unit Each Year
Declarant’s Pre-Turnover Subsidy
TOTAL OPERATING EXPENSES
TOTAL OPERATING EXPENSES & RESERVES
this projected annual budget and based on the percent of Common Elements in
Exhibit A of the Innisfree Patio Home Condominium
Declaration, the projected monthly working capital assessment for each Unit is as described on Exhibit “A”. In addition, each Unit will be assessed its
applicable monthly fee from the Little What Cove Homeowner’s Association (as
described below in Section 10 of this Disclosure).
30-year plan for the maintenance, repair and replacement of common property
with regular and adequate contributions, adjusted by estimated inflation and
interest earned on reserves, to meet the maintenance, repair and replacement
schedule in not set up at this time because there will be no capital
improvements to the General Common Elements that would need to be replaced in
the future. If any future capital
improvements are made to the General Common Elements by the Association, a
Reserve Account will be established in the name of the Association of Unit
Owners for replacement of such improvements that normally require replacement
in more than three and less than 30 years.
This reserve account would be in addition to the working capital account
to be set up to handle ongoing monthly expense items described in Section 6 above. The amount of the reserve account assessment
would be subject to adjustment by the Association each year based upon any
relevant changes in the factors considered in establishing the initial reserve
The Act requires the
formation of an Association and the adoption of Bylaws to govern the operation
and management of the Condominium. The
Act further requires the election from among the Unit Owners of a Board and a
President, a Secretary and a Treasurer of the Association.
The Condominium will be
governed by the Innisfree Patio Home Condominium
Association, an Oregon
nonprofit corporation. As provided in
ORS 100.200(1), the Declarant may retain
administrative control of the Association for a period not exceeding the
earlier of: (a) seven (7) years
from the date of conveyance of the first Unit; (b) the date of conveyance
to persons other than Declarant of 75% of the Units
in the Condominium which may be created or annexed under ORS 100.125 or
100.150, whichever is applicable; or (c) the date on which Declarant
elects to relinquish permanently its control, whichever date first occurs. Refer to Section 14.4 of the Declaration for
the provision granting the Declarant this right of
control of the Association. Refer to
Sections 14 and 15 of the Declaration and Sections 2, 3, 5 and 8 of
the Bylaws for specific information regarding the operation and maintenance of
Each Owner, by virtue of being a Condominium Owner
and so long as such Owner continues in that capacity,
shall be a member of the Condominium Association. The membership of an Owner shall terminate
automatically upon an Owner being divested of its ownership interest in a Unit and
Common Elements. Each
membership in the Condominium Association shall be appurtenant to the Unit
owned by an Owner and shall not be transferred in any manner whatsoever except
upon a transfer of title to such Unit and then only to the transferee of such
title. Any attempt to make a prohibited
transfer of a membership shall be void.
A Unit Owner’s control
of the operation and management of the Condominium project is generally limited
to the right to vote at the meeting.
Each Owner of a Unit
will be entitled to one vote for each Unit owned. There will be one voting representative of
each Unit. In the event of co-owners
there will be only one vote per Unit.
Status of Innisfree Patio
Home Condominium Association
As of September
1, 2006, a Transitional Committee of Owners has formed and is working with the Innisfree Patio Home Condominium Association for the
eventual turnover meeting from the Declarant.
Watercraft, trailers and recreational vehicles may be
parked on Limited or General Common Elements only while being prepared for
travel, limited to 48 hours prior to leaving and 48 hours after return to Innisfree Patio Home Condominium. Subject to the preceding sentence, parking of
boats, watercraft, trailers, recreational vehicles, trucks, campers,
motorcycles, similar equipment and anything being in excess of three-quarters
of a ton in weight shall not be allowed on general or limited common elements,
but may be parked inside of the garage portion of a Unit.
10.1.1 Each member of the Association shall also be a
member of the Little Whale Cove Homeowner’s Association (the “LWC Association”)
as provided in the LWC Declaration. The
membership of an Owner in the LWC Association shall terminate automatically
upon termination of membership in the Association. Each membership in the LWC Association is
appurtenant to the Unit owned by an Owner and shall not be transferred in any
manner whatsoever except upon a transfer of title to such Unit and then only to
the transferee of such title. Any
attempt to make a prohibited transfer of a membership shall be void.
10.2.1 The Association may
contract with the LWC Association for maintaining all or part of the
landscaping on the Common Elements. On
or before the completion of the last Unit, Declarant
will convey to the LWC Association the private streets, the boardwalks, the
tennis courts, the trash areas, and the LWC Association will maintain them in
accordance with the LWC Declaration. Any
such services provided by the LWC Association will be paid for by the Owners as
common expenses of the LWC Association and the Condominium Association.
Restriction on Ownership
10.3.1 No condominium unit may be owned by more than one
person or other entity without approval of the Board of Directors, except for
two domestic partners. However, a condominium
unit may be owned by any form of business entity, without Board approval.
Provided to LWC Association
10.4.1 All Little Whale Cove Homeowners will have an
easement over the trails through Innisfree connecting
to LWC Common Areas and to the Outdoor Tennis Courts.
The Declarant intends to
sell the Units by means of a document entitled Innisfree
Patio Home Condominium Unit Sales Agreement.
Prospective purchasers should be aware that unless agreements dealing
with the purchase or sale of real property are reduced to writing and made a
part of the contract, it may be difficult or impossible to enforce.
Under the Act, a purchaser of a Condominium Unit has
the statutory rights outlined below:
11.2.1 A purchaser of a Condominium Unit may cancel for any
reason the sale of a Condominium Unit or any contract agreement or evidence of
indebtedness associated with the sale of the Condominium Unit within five
business days (excluding Saturdays and holidays) after the date on which the
latest of the following events occurs:
(1) the signing of the Unit Sales Agreement; (2) the signing of the
receipt required under ORS 100.705(2) upon delivery of the Disclosure
Statement; or (3) the signing by the purchaser of the receipt required under
ORS 100.725(4) upon delivery of a copy of the documents specified in
11.2.2 A purchaser’s right to cancel set forth above
terminates at the time of the closing of the Unit purchase transaction even if
the five-day cancellation period has not expired.
11.2.3 The Unit Sales Agreement must contain either upon the
first page, or upon a separate sheet attached to the first page, a Notice to
Purchaser which sets forth the purchaser’s right of cancellation and other
11.2.4 A purchaser must immediately be given a copy of the
Notice to Purchaser and a copy of the Unit Sales Agreement when it has been
fully executed by all parties.
11.2.5 A copy of this Disclosure Statement must be given to
a purchaser by the Declarant or an agent of the Declarant not later than the date the Unit Sales
Agreement is fully executed by all parties.
11.3.1 Sales will be closed at Western Title and Escrow
Company, who will serve as escrow agent pursuant to the Escrow Agreement
between Declarant and escrow agent.
11.3.2 Date of
Closing No funds of a purchaser will be distributed
until the Declaration or applicable supplemental Declaration is recorded and
the Declarant can convey title to the Unit free and
clear of all encumbrances except those specified in the Unit Sales Agreement,
or the Agreement is terminated according to the provisions contained therein.
by which the Purchasers are Bound In addition to the Declaration and Bylaws of
the Innisfree Patio Home Condominium, purchasers of
the Condominium Units will be bound by the Notice to Purchaser (Right of
Cancellation), Unit Sales Agreement, Condominium Real Estate Warranty, the LWC
Declaration, the LWCHA Bylaws, the
Escrow Instructions and the conditions, restrictions and easements of record
imposed by the City of Depoe Bay. Copies of these items are available upon
request from the escrow agent.
be no restrictions upon the transfer and ownership of Units except as described
in the LWC Declaration. The Units are
intended for residential use. Pursuant to the LWC Declaration, LWCHA will review and approve all construction of
improvements and alterations to completed Units.
Condominium will be serviced by the following:
City of Depoe
City of Depoe
Central Lincoln PUD
Bay Fire District
Lincoln County Sheriff
services will be individually billed to each Unit by the provider of such
maintenance, repair, replacements and all landscaping work for the General
Common Elements and the front yards of the Limited Common Elements will be
undertaken by the Board on behalf of the Association to the extent determined
necessary and proper by the Innisfree Patio Home
Condominium Board. In addition, all staining of the Units will be undertaken by the Board on behalf
of the Association to the extent determined necessary and proper by the Innisfree Patio Home Condominium Board.
will be responsible to maintain their Units other than the exterior staining
and will be responsible for the landscaping on their Limited Common Elements
other than the front yard that is the responsibility of the Association. Except for work covered by the seller’s
warranties, all maintenance of and repairs to any Unit will be made by and at
the sole expense of the Owner of such Unit, who will keep the same in good order,
condition and repair. In addition, each
Owner will have the responsibility and rights as set forth in Section 9 of the
Declaration and Section 8 of the Bylaws relating to the maintenance,
repair or replacement of the Units.
All maintenance of common property that is the
responsibility of the LWCHA as
described in the LWC Declaration will be undertaken by
the LWCHA to the extent determined
necessary and property by the LWCHA
or the LWCHA Board.
14.4.1 All Owners will be obliged to pay on a monthly basis
in advance Common Expenses assessed to them by the Board on behalf of the Association pursuant to the Bylaws
and the Declaration.
14.4.2 All Owners will be obliged to pay on a monthly basis
any charges assessed to them by the Board on behalf
of the Association pursuant to the Bylaws and the Declaration which result from
repairs, replacements, modifications, or maintenance to the limited common
elements benefiting a particular Unit or group of Units.
14.4.3 The Board will, within 90 days after the end of the
fiscal year, prepare an annual financial statement consisting of a balance
sheet and income and expenses for the preceding fiscal year for distribution to
all unit owners. The Board will also prepare a budget for the Association, estimate the Common Expenses expected to
be incurred, less any previous over-assessment, and assess the Common Expenses
to each Owner. The Board will advise
each Unit Owner in writing of the amount of Common Expenses payable by the
Owner and furnish copies of the budget and any amended budget on which such
Common Expenses are based to all Owners and, if requested, to their mortgagees,
at least 14 days prior to the annual meeting of the Association.
14.4.4 All Owners will be obliged to pay any assessments or
fees charged by the LWCHA pursuant
to the LWC Declaration and LWC Bylaws.
In addition to the provisions
contained in the Declaration and Bylaws, the Act provides that the Association
has the right to levy assessments against Unit Owners for Common Expenses. Failure of a Unit Owner to pay their share of
the Common Expenses will entitle the Association to file and foreclose the lien
on that Owner’s Unit. This statutory
provision further provides that an action to recover a money judgment for
unpaid Common Expenses may be maintained without foreclosing or waiving the
lien securing the claim for Common Expenses.
Board shall maintain, at the office of the Association, a copy suitable for
duplication of the following. The
Declaration, the Bylaws, any Rules and Regulations, any architectural standards
and guidelines, any amendments to such
documents, the most recent annual financial statement of the Association, the
current operating budget of the association, the reserve study and any other documents required by the Act to be so maintained. Such documents shall be made reasonably
available for inspection and duplication by
Owners, Mortgagees, and prospective purchasers of Units upon written request therefrom. All
Association documents and records shall be maintained within the State of Oregon at all
times. Proxies and ballots must be retained for one year
from the date of determination of the vote.
The Board may adopt reasonable rules governing the frequency, time,
location, notice and manner of examination and duplication of association
records and a reasonable fee for furnishing copies of any documents,
information or records. Records may be withheld from examination and
duplication to the extent the records concern: personnel matters or medical
records; contracts, leases and other business transactions that are under
negotiation; communications with legal counsel that relate to personnel or
contracts, leases and other business transactions under negotiation; documents,
correspondence or reports compiled for Board executive sessions held in
compliance with ORS 100.420; or files of individual owners kept by the