2. a house with blazing neon signs; and

3. a house painted purple with pink polka dots

One of the reasons why people do not want to live in a community with these type of activities is because the property values have a tendency to plummet. Therefore, the laws of the State of Florida have created a means of protecting the owners, and in fact, have provided the owners through the Association with a vehicle to enforce these rights. While it is anticipated that nobody will like each and every provision set forth within the governing documents, in general the governing documents should benefit each and every one of the owners. However, even if this was not the case, each and every owner would still be required, by law, to comply with the provisions of the governing documents and the Florida Statutes. The reasons that compliance is mandatory and even required by law is recited below.

The Declaration of Covenants and Restrictions constitutes in the nature of a "covenant running with the land". Generally, this means that purchasers and tenants, have record title notice of the existence of that Declaration and have agreed to abide by each and every term set forth therein. Many owners may say "but I did not know of the existence of the Declaration" or "no one told me of the existence of the Declaration". While such statements may be true, the responsibility for knowing of the existence of the Declaration lies with the owner and the tenant.

Generally, the Declaration of Covenants and Restrictions are recorded in the county records prior to the time that each and every one of the Lot owners took title to their Lot(s). Hence, you did have record title notice of the existence of the restrictions. Additionally, by virtue of the Declaration being recorded prior in time to the deed by which each owner took title to his Lot, the Declaration takes precedence over the deed. Therefore, each owner by law tacitly agrees when he purchases a Lot that he will abide by the Declaration. Understand the Declaration is in the nature of a super contract between the Association and each of the owners. In fact, if you question the enforceability of the Declaration, please pull out your own title insurance policy. Within it you most likely will see that title to your property is subject to the Declaration of Covenants and Restrictions (i.e. the title policy does not insure the owner against the requirements of the Declaration).

1. each owner, tenant and guest shall comply with the governing documents (i.e. Declaration, Articles of Incorporation and Bylaws, etc.); and

• That the governing documents may be enforced against owners, tenants and guests by the Association.

Obligations of members; remedies at law or in equity; ...

see Creature, pg 3

comply with these provisions may be brought by the association or by any member against:

• The association;



• A member;

• Any director or officer of an association who willfully and knowingly fails to comply with these provisions; and



• Any tenants, guests, or invitees occupying a parcel of using the common areas.

The prevailing party in any such litigation is entitled to recover reasonable attorney's fees and costs. This section does not deprive any person of any other available right or remedy. (emphasis added)

Please understand that the reference to "Member" in the above Statute equates to and means the "owner" of a Lot. Given the above, a violation of the Declaration constitutes a violation of the Florida Statutes (i.e. it is unlawful). Therefore, any time someone violates the Declaration, they are also violating the Florida law.

Often we see individuals who want their Board of Directors to ignore the Covenants. Please do not request this of your Board of Directors as they have a fiduciary duty which ostensibly includes endeavoring to abide by the Documents and the Florida Statutes. Understand each of the other owners has a right to expect that the Documents will be enforced for their protection. Nevertheless, please understand that the Association is not an insurance company which guarantees that no violation shall ever occur. Rather, the Association intends to compel compliance and require compliance as soon as it learns of a violation. Additionally, often we hear the defense "this violation occurred prior to my purchasing the house". Understand, by virtue of the Declaration constituting a covenant running with the land, it is the Lot in addition to the activities of the owners or residents which must be in compliance. Therefore, if a violation is discovered later with respect to your Lot, the Association ostensibly has the right to enforce compliance regardless of ownership. This of course, means the owner of the Lot who currently exists may bare the brunt and the burden of such compliance. Remember, you as the purchaser had record title notice of the existence of the Declaration and what was required. By way of example, if Owner 1 failed to pay his assessments and then sold his house to Owner 2. This law firm would generally apprise Owner 2 of the delinquency of that Lot's account and request Owner 2 to bring it current. If Owner 2 did not bring the account current, then the Association has the right to lien the property and ultimately foreclose and take the house for delinquent and unpaid assessments. Understand that in the above scenario the law firm would not even be talking to Owner 1. Rather, we would be communicating with the current owner even though the delinquency arose prior to his purchasing the Lot. Please further understand that the current owner may have significant rights to go back against

see Creature, pg 4

4th Quarter 2000 Page Four Volume XII

CREATE HARMONY BY WORKING HAND IN HAND

Creature (from pg 3)

the seller, the title company, the closing agent, a realtor, another attorney, etc. Conversely, the Association should endeavor to collect the funds in the easiest manner available. Generally, this will be via a lien and foreclosure proceeding which goes against the Lot regardless of the owner. Please understand that the above is not meant to be threatening, rather it is provided as a means of explaining why each and every owner, occupant and guest must comply with all of the covenants and restrictions set forth in the Governing Documents (i.e., why the Governing Documents must be followed).

Please work with your Association to make your community the best it can be, to protect its property values, and have a harmonious, congenial community. Please do not allow violations to exist as the Association may be compelled to turn the matter over to this firm to compel compliance. We do not wish this to occur. However, in the event of violations, the Association and this law firm intend to act responsibly and compel compliance for the benefit of the entire community.

NEW ANNUAL MEETING PACKAGE

AVAILABLE

In addition to our standard Annual Meeting Package ($150.00), we now offer the Deluxe Annual Meeting Package which includes in addition to preparing the documents in accordance with the Florida Statutes and your governing documents, one of our associate attorneys will also attend your annual meeting for up to three hours (including travel time). Our partners, Ken Clayton and Neal McCulloh, are not included in

this package. If you would like one of them to attend your meeting, please call for a quote for one of the partners to attend your annual meeting. This new Deluxe Annual Meeting Package is $450.00. If you have any questions regarding this new service, please call Arlene-Frances Ring at any of our offices.

Place Time Limits on Owners Speaking

Meetings (from pg 1)

are taking more time than that, you are possibly guilty of one of the following things:

• Placing too many items on the agenda. Consider having workshops with your committees if necessary prior to the board meeting when undertaking a large project.



• Not limiting/budgeting time for each subject.



• When drafting the agenda, place time limits for each subject and place those limits next to each item. Try to limit the scope of discussion for each topic. You will probably have to review the agenda each month to make a determination of how much time each topic needs. Rehearse in your mind what you are going to say. Don't let people ramble on.

• Allowing owners too much participation in the meeting. While you do not want to alienate owners from attending, for everyone's benefit, you should limit their speaking time to two minutes.

• Don't discuss a topic that is not on the agenda. If a topic comes up that needs to be discussed, place it on the next meeting's agenda. Keep to the agenda!

see Meetings, pg 5

Some people believe that the president should never cast a vote on an issue unless there is a tie. This belief is false. You not only can, but should, vote on every issue that comes before the board. However, you should abstain from voting on an issue if there is a conflict of interest. For example, if the Board is voting on giving a contract for landscaping to one of your relatives. It may be the best bid that you have received, but you have a personal interest in your relative getting that contract. In that event, not only should you abstain from voting, it might be prudent to leave the room when the vote takes place.

Become acquainted with Robert's Rules of Order. This is especially important if you are the president. You do not have to know every single point of order, but become familiar so you can competently conduct a meeting with authority and poise. The time will come when you will have a "problem meeting." To anticipate this time, buy a gavel and use it when the need arises. It can be a valuable tool in getting people's attention and restoring order to the meeting.

The above tips are just a few suggestions for having successful board meetings. When trying to create your own ideas, review what has been done in the past and use it as a "building block" for better board meetings. Above all, remember that you are a director of a corporation, and even though it may be a not for profit corporation, it is still a corporation and should be treated as a business.

4th Quarter 2000 Page Six Volume XII

COVENANT ENFORCEMENT OF "COMMERCIAL ACTIVITY"

IN THE NEW MILLENNIUM