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87 <br /> foreclosure shall be added to the amount of such assessment and assessment lien. No Owner may <br /> waive or otherwise escape liability for the assessments provided for herein by non-use of his or <br /> her property or the Common Areas or otherwise. <br /> Section 3. Subordination of the Lien to Mortgages <br /> . The lien of the assessments provided for in this Declaration shall be subordinate to the lien of <br /> any first Mortgage on a Lot. Sale or transfer of any Lot shall not affect the assessment lien. The <br /> sale or transfer of any Lot pursuant to a mortgage foreclosure under any first Mortgage on a Lot, <br /> or any proceeding in lieu thereof,however,shall extinguish the lien(but not the personal obligation <br /> of the mortgagor or any prior Owner)of such assessments as to payments which became due prior <br /> to such sale or transfer; provided, however, that the Board of Directors may in its sole discretion <br /> determine such unpaid assessments to be an Annual, Special or Special Individual Assessment, as <br /> applicable, collectable pro rata from all Owners, including the foreclosure sale purchaser. Such <br /> pro rata portions are payable by all Owners notwithstanding the fact that such pro rata portions <br /> may cause the Annual Assessment to be in excess of the maximum annual assessment permitted <br /> by applicable law, if any. No sale or transfer shall relieve the purchaser of such Lot from liability <br /> for any assessments thereafter becoming due or from the lien thereof, but the lien provided for <br /> herein shall continue to be subordinate to the lien of any first Mortgage on a Lot. <br /> Article VII <br /> RESTRICTIONS <br /> Section 1. Residential Restrictions <br /> . Each Lot shall be used exclusively for single-family for its main occupied structure with a <br /> minimum square footage of 1,500sf, with an option of an additional Auxiliary Dwelling Unit <br /> (ADU) not to exceed 1,500sf, for the use of guest or for rental purposes provided, however, <br /> Declarant and contractors authorized by Declarant shall have the right to use the Lots designated <br /> from time to time by Declarant for the purpose of construction and operation of construction <br /> offices and trailers, storage areas, parking areas and sales/marketing offices and trailers (and for <br /> related uses) for the Project. Home businesses incidental to the Lot's primary residential use, in <br /> compliance with all applicable laws and that impose no undue burden (such as traffic, parking, <br /> noise or excessive deliveries) on other residences are allowed. The Board may issue rules <br /> regarding permitted business activities. Except those to be utilized by Declarant, all structures to <br /> be erected, placed, altered, used or permitted to remain on any Lot shall first be approved in <br /> advance in writing by the Architectural Review Board pursuant to the Guidelines. No Lot and no <br /> Improvements may be used for hotel or other transient residential purposes. Any lease relating to <br /> any Lot or any Improvements thereon (or any part of either thereof) must be for a term of at least <br /> six (6) months, must be in writing, and must provide that the tenant is obligated to observe and <br /> perform all of the terms and provisions hereof applicable to such Lot and/or Improvements. In the <br /> event an Owner shall rent or lease his or her Lot or any Improvements thereon(or any part of either <br /> thereof), such Owner shall immediately give to the Association in writing: (i) the name of the <br /> tenant and the Lot rented or leased; (ii)the current address of such Owner; (iii)a true and complete <br /> copy of the lease or rental agreement; and (iv) the certification of the Owner that the tenant has <br /> been given a copy of this Declaration, any applicable amendments, and the Bylaws and that such <br /> 16 <br />