Restrictions | Vahakni Residential Community

Restrictions

EXHIBIT A

Restrictions

FOR THE RULES AND RESTRICTIONS OF CONSTRUCTION AND RESIDENCY FOR PLOT OF LAND IN VAHAKNI RESIDENTIAL COMMUNITY

“Hovnanian International” LLC (hereinafter, Company may also be referred herein as Seller)  and/orthe persons designated by ithim shall be entitled to exercise control and carry out checks with regard to observance of this  Restrictions document. In the context of this  Restrictions document "Buyer and may also be referred herein as Owner" shall be defined as an owner of real  property in Vahakni Residential Community.

RESTRICTIONS

In accordance with the provisions of Article 49 of the Land Code of the Republic of Armenia, the PLOT OF LAND being sold to the Buyer shall be directly subject, under the AGREEMENT ONSALE AND PURCHASE OF REAL PROPERTY, to the following restrictions of rights:

RULE 1. The persons entitled to perform development on the construction site shall be obliged to comply with the conditions set out in   this  Restrictions document at all stages of the construction and further in the occupancy of the residence.

RULE 2 Construction on the PLOT OF LAND shall start no later than 1 (one) year from the date of signing AGREEMENT ONSALE AND PURCHASE OF REAL PROPERTY. In cases where the Owner has not purchased the Plot OF LAND from the Company, the start date shall calculated from the date that Owner has completed a OWNERSHIP UPDATE FORM which has been accepted by the Company.

In the context of this  Restrictions document "START OF CONSTRUCTION" shall be recognized as pouring of the footings of the foundation of the home.  

Construction on the PLOT OF LAND shall finish no later than 3(three) years from the date of signing AGREEMENT ONSALE AND PURCHASE OF REAL PROPERTY.

In the context of this  Restrictions document Completed or Finished construction which shall be construed as a home that has received an Act of Completion from the appropriate governing body.

If construction is not complete within this 3 year time frame, Company has theexclusive  right to Develop the PLOT OF LAND according to Exhibit B of AGREEMENT ONSALE AND PURCHASE OF REAL PROPERTY which will be provided as a separate document to non-original PLOT OF LAND Ownerswith homes still under construction.

RULE 3. Construction on the PLOT OF LAND shall be carried out in accordance with the project coordinated with and subject to the approval by the Company, for which

  1. the ARCHITECTURAL PLANS, ENGINEERING PLANS, and construction schedulefor the PLOT OF LAND shall be presented to THE Company  forits experts’ examinations.  THE Company shall review, comment, approve or disapprove such PLANS which shall take place no longer than 10 business days.  After approval and commencement of construction, Company may stop construction for violation of any approved submissions and/or other AGREEMENTs between  Company and Buyer. The FEE SCHEDULE for Site Surveying, Site Review, Site Visits, Violations, Submissions, is attached as Exhibit C of AGREEMENT ON SALE AND PURCHASE OF REAL PROPERTY.    
  2. It is in the Company’s sole discretion to approve the architectural and engineering techniques of construction on the PLOT OF LAND to ensure the high quality and safety of the building.   Restrictions are used throughout the communityand their efficient implementation at the start of, during, and in completion of the construction process,
  3. Changes and/oradditions and/or other revisions of the architectural and engineering of the project shall be coordinated with the Company. The changes must be initiated and/or approved and coordinated with the Company. Such changes and/or additions and/or  other revisions are specified in point a) and b) mentioned above (with the exception of the term explicitly specified in point a), Fees for such changes and review fees are outlined in Exhibit C of AGREEMENT ON SALE AND PURCHASE OF REAL PROPERTY .
  4. Coordination of the architectural and construction project with the Company shall be reviewed by such procedures and terms (but shall take no longer than 10 business days) so that the terms established under the AGREEMENT ON SALE AND PURCHASE OF REAL PROPERTY and/orlegislation and/orby THE Company will be kept and the Company will be free of all liability for delays of any kind.
  5. Changes, renovation, and reconstruction of residential house and other construction built on the PLOT OF LAND and/or other transformations (including any change of facade /with the exception of internal repairs/) and/ordemolition of construction and/or additional construction on the PLOT OF LAND, in particular, building of new construction and/or structures, may be implemented only in accordance with the procedure specified in point a) to schedule of fees outlined in Exhibit C of AGREEMENT ON SALE AND PURCHASE OF REAL PROPERTY and by maintaining the requirements laid down in these paragraph (with the exception of the term with guide specified in point a) )

Any structures not meeting the requirements of   the  Restrictions document shall be destroyed by the Buyer, and in case of inevitability of destruction by the Company the expenses related to the destruction shall be compensated by the Buyer. In all cases the development of the Plot of Land may not be launched without the construction permit issued by the relevant competent authority. The Buyer shall be prohibited to fall outside of the Plot of Land owned by him and use the area of another Buyer and area owned by the Company, including common areas and facilities.

RULE 4.No fence and/or any similar structure isolating the PLOT OF LAND from nearby areas and/or obstructing the view of the PLOT OF LAND and/or residential house and other construction built on the PLOT OF LAND from the nearby areas shall be built within the area of the PLOT OF LAND.

RULE 5.No permanent structures can  be built within sections of the PLOT OF LAND where ground and/or underground communication lines, engineering infrastructures and/or easements and/or other engineering communications exist or are planned to be built, furthermore, geodesic points and/ormonuments for the  PLOT OF LAND should be installed, maintained and/or replaced.

The Company and persons authorized by him have the rights, without restriction or obstruction and free of charge, to enter the PLOT OF LAND to survey and/or install underground lines and other utilities (water, sewer, storm water, electrical, telecommunication, gas, fuel) infrastructures. the Buyer understands and accepts that these rights are for the benefit of the entire community. Therefore, installation of these facilities shall not be disturbed in any way as to cause inconvenience to the Company.

RULE 6  No explosions can be carried out in the process of construction on the PLOT OF LAND, with the exception of the explosions required for implementation of land works which will be coordinated with the Company. No construction works should be performed in the territory of residential houses and other construction built in the neighboring area of the PLOT OF LAND on Sundays and at night hours (from 19:00 to 08:00 am inclusive) for exterior works and from 21.00 to 08:00 am inclusive for interior works).  The environment of the PLOT OF LAND, including air quality, should be protected from pollution, the roads adjacent to the PLOT OF LAND should be kept clean, including  cleaning/sweeping of soil, and removal of construction and/or other waste scattered in the territory of the PLOT OF LAND .

RULE 7. The Buyer of the Plot of Land shall not have the right to divide the Plot of Land into parts and alienate or transfer it to other persons for use without the Company's written approval. It is permitted to develop only one residential house on any Plot of Land.

RULE 8. During the development, the Plot of Land shall be isolated from the neighbour land properties and shall be fully enclosed with the relevant materials in accordance with the procedure established by the legislation to maintain the safety of the traffic participants of the adjunct roads, as well as the safety of other persons in the adjunct areas of the construction site, and to exclude the pollution and garbage piles in the areas of common use outside the construction site.

During the development of the Plot of Land a relevant sign shall be placed in the visible part which shall contain information on the developer, constructor and designer, as well as an image of the exterior of the building being constructed.

RULE 9. During the development of the Plot of Land, the private house or other basic  construction (boiler house, garage, storeroom, pool) shall be placed on the Plot of Land in such a manner which allows to maintain appropriate distances from the boundaries of the Plot of Land, particularly,

a) at least 6 meters away from the road;

b) at least 4 meters away from the boundaries of the neighbour when the PLOT OF LAND size is no larger than 980 square meters  and at least 5 meters away from the boundaries of the neighbour when the PLOT OF LAND size is above 980 square meters.

c) at least 5 meters away from the boundary of the adjoining Plot of Land of the back part (backyard) of the building.

In calculating the mentioned distances, the nearest part of the buildings and construction within the boundaries of the neighbour land properties shall be taken as a basis.

The non-permanent structures (chat room, summer kitchen, barbeque house and exterior lighting) and the different equipments (chiller, ventilation, heating/cooling systems, solar panels, batteries, water heaters and exterior lighting etc.) as close to the main house structure as possible. If it is not placed in this manner and placed elsewhere on the Plot of Land and community residents can not agree on a solution, these cases will be separately reviewed by the Company as a Submission and Review request subject to the appropriate fees identified as a Violation on the FEE SCHEDULE and shall be paid by the party asserting such violation. The Company will determine a final solution which may not be challenged by either party.

The non-permanent structures and the equipment placed without the Company's written approval shall be subject to dismantling.

d.) Owner hereby agrees to submit of approval from the Company or its designated experts for any renewable energy solution it wishes to implement to generate electricity for use within his private home. Owner recognizes that interconnection with Company’s electrical grid system is extremely important and must be coordinated with Company experts in order to ensure electrical safety standards and requirements.

RULE 10. Any private house shall have not more than two floors. However, the Company has pre-approved  the design, of a mansard roof for Owners who desire this architecture. The maximum permitted height of the constructed private house is 12 (twelve) meters (from the facade of the private house) from point 0 of the Plot of Land to the highest point of the roof.

RULE 11. The impervious coverage (including roofs, driveways, sidewalks, pools, chatrooms and associated patios) of the development of any Plot of Land in Vahakni residential community may not exceed 60% of Plot of Land (including all the basic and non-permanent structures).

RULE 12.It is prohibited to perform any development or additional planting activities in the Plot of Land owned by the Company or common areas, without the written approval of the Company. Any plantings which impede traffic safety standards may be required to be pruned and or removed for safety reasons. The owner shall not have the right to use land plots located outside their property, except by the permission of the Company.

RULE 13Construction on the PLOT OF LAND, may be used for residential, non-commercial,non-hotel,housingexclusively. Buyer hereby acknowledges that the Company is the sole entity that can change the type of use from residential to another use. The Buyer cannotchange the residential purpose and/or functional role or foster such change. All other construction built on the PLOT OF LAND may be used only in such a way so that the purpose and/orfunctional role of the PLOT OF LAND and/or residential house and other structures built on it, under regulations for land and construction and/or urban development and/or other official requirements will not be violated. The PLOT OF LAND surrounding the house area should be used exclusively for such things as a yard, flower garden and landscaped gardens whose improvement should also be coordinated with the Company in advance, and the other structures built should be used exclusively for non-commercial, residential only purposes.

RULE 14Restrictions specified above shall be permanent and shall survive the completion of certain requirements herein. These restrictions upon the PLOT OF LAND are hereby acknowledged by the Buyer and shall survive the sale, transfer or assignment such PLOT OF LAND and be binding upon the successors and/or new owners and/orany user and/or pledge holder and/or contractor and/or holder of servitude of the PLOT OF LAND and/or its any part and/or any construction built on it and/or any part of such construction, irrespective of the basis of acquiring the respective right.

RULE 15  In case of failure by the Buyer to complete the improvements, construction of residential structure and landscaping of the PLOT OF LAND,  within the term specified in RULE 2 of this Restrictions document, the Company shall have the right to demand payment of penalty from the Buyer in the amount of 0.055%/zero point zero five five/ percent for each overdue day of the price of AGREEMENT ON SALE AND PURCHASE OF REAL PROPERTY. Moreover, the Company may exercise its “DEVELOPMENT RIGHT” for the PLOT OF LAND as noted in RULE 2 under terms described in the Exhibit B.

In the case of any violation of the Restrictions in this Restrictions document whose penalty is not specifically addressed in this Restrictions document, the Company has the sole discretion to assert a solution commensurate with such violation.

RULE 16 In case of failure by the Buyer or any other person to observe the restrictions specified in this Restrictions document, the Company and/or other concerned PARTIES and/or state and/or local self-government body shall be entitled to litigate by judicial procedure to ensure the observance of these restrictions.

RULE 17The Company may transfer all its rights with regard to restrictions of rights herein to the PLOT OF LAND as provided for by the AGREEMENT ON SALE AND PURCHASE OF REAL PROPERTY and/or obligations stipulated in this article, completely or partially, to other persons at any time by sending a written notice about it to the Buyer/owners of the PLOT OF LAND. the Buyer shall be obliged to ensure that any interest holder and/or user and/orpledge holder and/orconstructor and/or holder of servitude of the PLOT OF LAND and/or its any part and/or any structure built on it and/or any part of structure shall be held to the restrictions specified in this Restrictions document.  

RULE 18 The Buyer is hereby required to notify the Company within 5 business days of  Buyers intent to sell said PLOT OF LAND to a third party. Prior to the sale, the Buyer is required to register the third party purchaser with the Company in order to provide such third party a Certificate of Clear Title which demonstrates the absence of financial and any other potential violations or liabilities due to the Company. This Certificate of Clear Title shall be provided for a fee to the Company identified in Exhibit C.  Moreover, Buyer is required to notify the Company within 10 business days after completion of said sale to a third party and provide full details including address, name, phone number and additional contact information of said third party. In addition, the Buyer commits to submitting a Ownership Update Form to the Company which is attached below to this  Restrictions document.

RULE 19.Shrubs may be planted within the boundaries of the Plot of Land (shrubs to be pruned), which may isolate the Plot of Land from the neighbour land properties, however, their maximum height may not be more than 120 cm in the facial area and not more than 200 cm in other sections.

The Buyer shall have the right to plant in its own Plot of Land the following fruit trees – quince, apricot, apple, pear, wild cherry, cherry, peach, plum, fig, almond, pomegranate and walnut, and only such decorative trees that do not pollute the environment.

Trees and shrubs in the area should be planted and grown in a way that their foliage does not fall beyond the boundaries of the land and does not cause any inconvenience to the Buyers of the neighboring Plot of Land. Prior to any improvements to the Plot of Land, the plan should be submitted to the Company in advance or to the company mentioned by the latter for approval.

RULE 20.No Buyer shall have the right to enter into agreements for renovation and improvement of common areas and buildings. The construction works inside the building should be conducted quietly and not disturb the rest of the Buyers.

No Buyer or resident of any house shall make any construction alteration to the exterior of the real estate property, or shall place or allow to place any electrical wiring - telephone, radio, TV, air conditioning, or other equipment, mechanisms without prior written approval of the Company.

RULE 21. The Buyer is not allowed to paint or make any other alterations to the exterior of the Plot of Land and the building without the written approval of the Company.

RULE 22. It is not allowed to use any common areas for discharging construction waste and garbage, and other remaining waste and garbage should be kept in special garbage containers.

RULE 23. Each Buyer shall be obliged to preserve the exterior of the building and Plot of Land, take care of its maintenance and undertake all relevant renovation works. In case of any damages, the Buyer shall be obliged at his own expense to immediately replace all equipment envisaged for maintenance and service of his owned building and Plot of Land.

RULE 24. No Buyer shall have the right to keep such equipment and items which are hazardous for the environment and threatens to environment within and outside his/her building.

RULE 25. The Buyers shall not attach or allow to attach or display on their Plot of Land and external walls of the building any sign, banner or image, promotional materials including for both sale and rent purposes. To place any signs or relevant banners or images, it is required to apply and receive the written approval of the Company.

RULE 26.  It is not allowed to keep or breed any type of animal or fowls within the Plot of Land and the building of the Buyer. In the building owned by the Buyer under the ownership right, it is allowed to keep and look after not more than 2 dogs, cats or other domestic animals, provided that they shall not be kept, bred or serve for any commercial purpose. It is prohibited to provide a space for a dog outside the building.

RULE 27. Any Plot of Land and building shall be used as far as possible in a way not to cause any disturbance or annoyance to neighboring house Buyers. Each Buyer shall be obliged, as far as possible, to follow nation specific traditions, not to host mass parties or events, which will disturb others in the community. It is prohibited to organize and hold events, as well as have music, firework and other actions causing noise outside the building after 22:00.

RULE 28. No Buyer shall have the right to park his/her vehicle/ motorcycle along the streets for common use. They should be parked exclusively in front of the garage of the Plot of Land of the Buyer. It is prohibited to park trucks, boats, boat attachments, mobile homes or other similar vehicles, which should be parked in the specially designated places.

It is prohibited to park abandoned, unusable vehicles, as well as other vehicles bearing promotional banners in the territory of the community.

RULE 29. Each Buyer shall acquire all such ownership rights, which are envisaged in the ownership right to the Plot of Land and building, including the right to free disposition, possession and alienation, except for the rules and restrictions provided for under  this  Restrictions document, which are not subject to changes.

The Buyer shall have the right to rent out or otherwise use his/her owned Plot of Land and building, if the tenant or user has provided his/her written consent to observe the terms of   this  this  Restrictions document and if the tenant has been warned that in case of violation of even one rule of  this  Restrictions document, he/she will be deprived of the right to rent. The rental agreement must contain relevant note in a separate clause.

RULE 30. It is not allowed to hang or display laundry/underwear/ or clothes outside any building. It is not allowed to hang clothes, carpets, covers, clothes lines or other such items out of the windows or otherwise be visible from any common areas.

RULE 31. It is not allowed to place external speakers or other similar devices. No external lighting device should be placed on the exterior of the house. Buyers and residents should show exceptional attention to avoid loud noise which disturbs and annoys the others.

RULE 32. Buyer or residents are not allowed to burn or break or cut any property or plant, which are located in the common areas.

RULE 33. Each Buyer in Vahakni community shall be obliged to conclude a service agreement with the Company for the service purposes of the Plot of Land he/she owns, as well as the common areas (properties) of the community and to pay the Company for the provided services thereby. The list of services is a single package, it is not subject to division and separation, and the amounts to be paid for the services provided are set out in the abovementioned agreement.

The fees established by the service agreement may be reviewed once a year considering the significant increase in prices of the materials and equipment (fuel, spare parts, goods), third party services used for servicing, changes in the market conditions for remuneration of workforce and inflation rate officially recorded in the previous year.

 RULE 34.The Buyer shall be obliged to

a) keep the animal in line with its biological and individual peculiarities;

b) maintain the sanitary-hygienic rules for keeping the animal, as well as to carry out the annual vaccination of the animal against rabies;

c) promptly inform the Company and appropriate veterinary or health organizations about the harms caused by the animal to the health of a person or other animal by transporting the animal to carry out examination and quarantine control;

d) promptly inform the veterinary organization  about the suspicion of the disease of rabies of the animal and isolate him before the veterinarian's arrival;

e) implement sanitary-hygienic measures to prevent animal diseases;

f) exclude the pollution of common areas, common areas of multi-residential houses, yards, pavements, streets, lawns,  as well as green zones by the animal;

g) it is prohibited to leave the animal without supervision;

h) obtain a relevant permission for keeping an animal;

 i) ensure safety and rest of each person from the animal impact, as well as ensure safety   without a muzzle or damage;

RULE 35 When keeping animals natural persons and legal entities shall be obliged to consider the biological and individual peculiarities of those animals, to keep the law, as well as the rights and legal interests of others.

RULE 36. Favorable living conditions for animals shall be ensured.

RULE 37. It is prohibited to keep animals in common areas.

RULE 38. Walking with animals is allowed only in specially designated places. In the absence of such places, walking may be carried out in deserted areas or lawns, except for the areas adjunct to educational, cultural, sports places and areas for kids.

RULE 39. When walking with dogs the Buyer shall be obliged to ensure the safety of surrounding people.

RULE 40.When walking with dogs the Buyer shall be obliged to

a) take the dog outside or inside with a leash, the length of which will allow to control the dogs behaviour. The dogs (military working dogs, service dogs, patrol dogs and other dog breeds, that may be aggressive and dangerous for the life or health of a person  or another animal, hereinafter aggressive dog) threatening people and other animals should have muzzles.

b)  keep the aggressive dog with a muzzle during sidewalks, in the roads for pedestrians, in crowded places and in crossroads.

Walking with aggressive dogs in the districts is allowed only with a muzzle and leash.

In crowded places the Buyer shall keep the aggressive dog with a short leash and muzzle.

RULE 41. When crossing a street or a crossroad the Buyer shall keep the animal with a short leash to prevent traffic accidents.

RULE 42.The Buyers shall be obliged to prevent pollution of the community areas during the walk with an animal, as well as they shall be obliged to cleanse the results of their life activities.

RULE 43. The Buyers of dogs shall have the right to release them only in specially separated places or isolated buildings under the ownership, possession or use.

RULE 44. It is prohibited to

a) make the animal attack humans and animals on command;

b) accommodate the incompatible breeds in the same area or the same breeds in the same area, which may result in aggression;

c) take the dog to a walk in areas  for kids, educational, cultural, sports facilities and areas;

d) take dogs of more than 15 kilograms to a walk for those who have used alcohol and for minors who have not reached the age of 14;

e) visit shops, public food and household facilities, medical, educational and cultural institutions with animals.

RULE 45 Restrictions specified RULES 1 to 44 of this Restrictions document shall be binding on all subsequent purchasers, successors, and/or assignees of the PLOT OF LANDand subject to state registration in accordance with the legislation of the Republic of Armenia. With changing technology, environmental conditions and community needs, the Company has the exclusive right to change, modify  the Rules and Restrictions on an as needed basis as it sees necessary and in its sole discretion.

  

EXHIBIT B

DEVELOPMENT RIGHTS

If BUYER does not complete construction in the time period described, THE BUYER may ask for an extension based only on the following criteria;

  1. Construction delay based on non-availability of materials, labor or redesign requirements.
  2. Force Majeure.

The SELLER can grant this extension or it can request to Develop the PLOT OF LAND and sell the property with compensation to BUYER based on the following general terms and conditions:

  1. Grant to Seller of the Development rights to the PLOT OF LAND. Seller is designated as exclusive Developer. Seller shall establish the price to be paid to Owner which shall be determined by a verified expert appraisal and paid to Owner using a payment formula used  in this example: if such person is assigned the development right for X square meter, then the purchase price is X/total square meter multiply  PLOT OF LAND price.
  1. Owner commits to sell the PLOT OF LAND or any part thereof including all improvements made by Seller to parties designated by Seller by assignment contract within 10 days after the submission of the request by Seller.
  1. The term of this development right shall be a minimum of two years from the date SELLER notifies BUYER of its right to exercise such Development right.

 

SELLER has the right to lien the PLOT OF LAND for the amount of any improvements made upon the PLOT OF LAND as part of its Development project.

 

EXHIBIT C

SCHEDULE OF FEES

 

1. Land Survey to be performed by HI prior to submission of proposed site plan and architectural concept plan (as per Clause 5.2.3) fee of 6,750  /six thousand seven hundred fifty/ AMD including value added tax per 1 stake/marker.

2. Review fee of Proposed – 50,000 /fifty thousand/ AMD including value added tax due upon submission.

3. Subsequent Plan Re submission and Re Review  - 25,000 /twenty five thousand/ AMD including value added tax.

4. Inspection of verified violation and subsequent inspections for rectification of said violation – 25,000 /twenty five thousand/  AMD including value added tax.  

5. Final inspection fee by Seller to verify Act of Completion 25,000 /twenty five thousand/  AMD including value added tax.

6. Land Survey (as per Clause 5.2.3) fee of 6,750  /six thousand seven hundred fifty/ AMD including value added tax per 1 stake/marker for an “As Built Survey” to be performed by HI after completion of all structures. 

7. Violation of solar renewable energy protocol outlined in Restriction in Exhibit A, 100,000 /one hundred thousand/ AMD including value added tax.

8. Fee for ownership update form – 20,000 /twenty thousand/ AMDincluding value added tax. 

9. Title Clearance Certificate Fee – 10,000 /ten thousand/ AMD including value added tax.