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ARTICLE XII <br /> OBLIGATIONS TO COMMENCE CONSTRUCTION <br /> A. Obligation to Commence Construction. Each Owner acquiring an unimproved Lot, including <br /> without limitation any Contract Seller or Builder,shall be obligated to commence construction <br /> of a single-family dwelling-unit on each Lot owned by such Owner within two years <br /> following the date of the recording of the deed of conveyance of such Lot to the Owner. For <br /> purposes hereof, the tern "commencement of construction" shall mean the date when (a) all <br /> plans for such construction have been approved by the Declarant or the Architectural Review <br /> Committee; (b) a building permit has been issued for the dwelling-unit by the appropriate <br /> jurisdiction;and(c)the pouring of footings. <br /> B. Repurchase Right. In the event commencement of construction has not begun within the <br /> two-year period provided in Paragraph A above, Declarant shall have the right, but not the <br /> obligation, to repurchase the Lot for a purchase price equal to the then "Fair Market Value" <br /> (as defined below), exercisable at any time thereafter and prior to the time that the Contract <br /> Seller or Builder commences construction. Once the Owner commences construction, it shall <br /> diligently prosecute such construction to completion within an eighteen-month period <br /> thereafter. For purposes hereof, completion of the dwelling-unit shall mean that a final <br /> certificate of occupancy has been issued by the appropriate jurisdiction for the dwelling-unit. <br /> If an Owner fails to commence construction within a two-year period,but Declarant does not <br /> exercise its option to repurchase such Lot, or if the Owner commences, but fails to diligently <br /> prosecute such construction required hereinabove, such Owner will be assessed a $500 per <br /> month fee for each month or part of a month that such Owner is in default hereunder, which <br /> fee shall be a lien against the Lot until paid. <br /> C. Fair Market Value. For purposes hereof, the"Fair Market Value"of the Lot will be equal to <br /> the amount agreed to by the Declarant and such Owner at that time. If the parties are unable <br /> to reach an agreement,each party shall select an appraiser who is qualified to perform an MAI <br /> appraisal to appraise the Lot,and the"Fair Market Value" will be equal to the average of the <br /> two appraisals. In such case, each of the Declarant and the Owner will pay all costs with <br /> respect to the appraiser selected by such party. <br /> D. Force Majeure. Notwithstanding anything herein to the contrary,the time periods set forth in <br /> this Article XII shall be subject to extension, at the election of the Declarant, by reasons of <br /> Acts of God, Force Majeure, and other matters outside the reasonable control of the Owner. <br /> Further, the provisions contained herein shall automatically terminate as to any Lot seven <br /> years from the date the deed into the Owner is duly recorded. <br /> E. Restrictions in Deeds. No Owner may transfer title to any Lot as to which construction has <br /> not been completed as required herein, unless the deed conveying such title specifically <br /> acknowledges the restrictions contained in this Article XII and subjects the Lot to these <br /> restrictions. <br /> 22 <br />