DECLARATION OF PROTECTIVE COVENANTS
LEGACY FARMS
Page 1 of 4

THIS DECLARATION is made on December 12, 2002, by Legacy Farms, LLC, a Nevada limited liability corporation (the Declarant).

RECITALS

Declarant is the owner of that certain real property located in the County of Washoe, State of Nevada, described in the Supplemental Declaration attached hereto as Exhibit "A" and made a part hereof and contemplates developing the same into lots and parcels.

Declarant intends to sell and convey lots and parcels within Exhibit "A" and before doing so, desires to impose upon them mutual and beneficial restrictions, covenants, equitable servitudes and charges under a general plan or scheme of improvement for the benefit of all of the lots and parcels therein and the owners and future owners thereof.

NOW, THEREFORE, Declarant desires that all of the Exhibit "A" land and all the lots and parcels therein, as hereinafter defined are held and shall be held, conveyed, hypothecated, or encumbered, leased, rented, used, occupied and improved, subject to the provisions of this Declaration, all of which are declared and agreed to be in furtherance of a plan for the development, improvement and sale of said lots and parcels, and are established and agreed upon for the purpose of enhancing and protecting the value, desirability and attractiveness thereof. The provisions of the Declaration are intended to create mutual equitable servitudes upon each of said lots and parcels in favor of each and all other lots and parcels; to create reciprocal rights between the respective owners of all such lots and parcels; to create a privity of contract and estate between the grantee of such lots and parcels, their heirs, successors and assigns; and shall, as to the owner of such lot or parcel, his heirs, successors or assigns operate as covenants running with the land for the benefit of each and all other such lots and parcels in the development as hereinafter defined and their respective owners, present and future.

   I. DEFINITIONS. The following terms as used in this Declaration are defined as follows:

  A. "Articles" means the Articles of Incorporation of the Association.
  B. "Association" means Legacy Farms Homeowners Association, the property owner's association with is a Nevada nonprofit corporation.
  C. "Board" means the Board of Directors of the Association.
  D. "By-Laws" means the By-Laws of the Association.
  E. "Committee" means the Legacy Farms Architectural Review Committee.
  F. "Common Area" means all of the real property designated as such in the Supplemental Declaration; all real property which may be later described by supplemental declarations as common area; and all real property acquired by the Association, whether from Declarant or otherwise, together in each instance with all improvements which may at any time be constructed thereon and owned by the Association, including, but not limited to recreational and community facilities, lakes, parks, paths and trails. Common area, as used in this Declaration does not include land owned in common or held in undivided interests by owners of multiple family dwellings within the development.
  G. "Declarant" means the Declarant above named and any other developer of any portion of the Legacy Farms LLC, its successors and assigns.
  H. "Declaration" means this Declaration of Protective Covenants and any amendments hereto.
  I. "Development" means all that real property situate in the County of Washoe, State of Nevada, described in the Supplemental Declaration and all other real property which may be described in additional supplemental declarations recorded from time to time with the Washoe County Recorder, which development is commonly known as Legacy Farms.
  J. "Improvements" means all buildings, outbuildings, streets, roads, trails, pathways, driveways, parking areas, fences, retaining and other walls, docks, piers, landscaping, light standards, antenna and any other structures of any type or kind.
  K. "Land Owned in Common" means land owned in common or held in undivided interests by the owners of multiple family dwellings.
  L. "Lot" means any numbered single family lot shown on a map, or any living unit in a multiple family area shown on a map. Land owned in common as part of a common family dwelling shall not be considered to be a separate lot for purposes of this Declaration.
  M. "Map" means the maps of the development as they are from time to time recorded.
  N.
  O. "Owner" means:


  1. Any person or legal entity, including Declarant, who holds fee simple title to any lot, unit, or parcel within the development.
  2. Any person or legal entity who has contracted to purchase fee title to a lot pursuant to a written agreement recorded in the Washoe County, Nevada Recorderís Office, in which case the seller under said agreement shall cease to be the owner while said agreement is in effect; or
  3. A lessee of a lot under a recorded lease from the owner of fee simple title to said lot for a term of not less than fifty (50) years, in which case the lessor under said lease ceases to be the owner while said lease is in effect.
  4. Owner does not include the Association.


  P. "Parcel" means any portion of the development other than a lot or common area.
  Q. "Single Family Dwelling" means a residential structure for the owner and his immediate family, his casual guests and his domestic servants and domestic employees, which dwelling is constructed on a lot designated in the Supplemental Declaration as a single family residential lot.
  R. "Supplemental Declaration" means:



  1. The recorded Supplemental Declaration of Declarant attached hereto as Exhibit "A"; or
  2. In the case of parcels being subsequently annexed to the development, the recorded Supplemental Declaration of a Declarant which incorporates the provisions of this Declaration therein by reference. In either event, the Supplemental Declaration shall include a description of the real property covered thereby subject to the provisions of this Declaration and shall designate the permitted uses of such property.

  II. LAND USE. Lots and parcels in the Supplemental Declaration shall be designated therein as to their permissible uses and shall thereupon become subject to the restrictive or other provisions of this Declaration relating to such uses. In the event a use is designated for which no such provisions are contained herein (e.g. single family dwelling, etc.), the same may be set forth in such Supplemental Declaration. Only activities connected with the designated uses may be carried out on any lot or parcel. There shall be no use of a lot or parcel other than the designated use.

    A. Single Family Residential. Only single family dwellings and such outbuildings as are usually accessory thereto and as may be permitted by the Committee shall be permitted on any lot designated as single family residential. The following restrictions shall specifically apply to such lots.

  1. Minimum Area. Each dwelling constructed shall have fully enclosed floor area (exclusive of roofed or unroofed porches, terraces, garages, carports, guest houses or other outbuildings) not less than twenty-four hundred (2,400) square feet.
  2. Height Limitation. No structure or portion thereof (except chimneys) constructed on any lot within the development shall extend to a point higher than that designated for such lot on an applicable supplement to this Declaration of Protective Covenants filed with the Washoe County Recorder from time to time with respect to each unit of the development, which supplement shall be so filed prior to the Declarant conveying any lots within any such unit. In the absence of such filing, height limitations within any unit shall be those for each lot within such unit established by the Committee.
   3. Building Envelope. The Declarant shall establish a building envelope and recommended point of access for each lot. This envelope will be bases [sic] upon the topography of the lot, itís relationship to neighboring lots, and any unique feature that the lot may have such as trees, meadows, rock outcroppings, etc. The size and shape of the building envelope may vary from lot to lot. If, in the opinion of the Declarant certain lots do not warrant the establishment of a specifically designated envelope, the envelope for those lots shall be set according to the normal setbacks of the governing local agency for that type of lot. In general, all building construction shall be confined to the building envelope area. If, in the opinion of the Committee, the building envelope shall cause the lot owner undue hardship in locating his home or accessory improvements, variances may be permitted by the Committee. Any such variance must be in writing and signed by the chairperson of the Committee.

  B. Common Areas. All areas in the development designated as common areas (owned and to be owned by the Association) are and shall remain private property and Declarant's recordation of a map showing such common areas shall not e construed as a dedication to the public of any such common areas located therein.

  1. Ownership. Declarant will convey all such common areas to the Association (except as set forth herein) free and clear of all liens and encumbrances (other than liens for taxes), but subject to such easements and rights-of-way as then appear of record, such conveyances shall be accomplished in segments from time to time as improvements, if any, to be located thereon as shown on the recorded maps of the development are completed.
  2. Use. The use and enjoyment of said common areas and improvements thereon, whether before or after conveyance to the Association, shall be subject to the powers of the Association as set forth in its articles and by-laws and to such rules and regulations governing the use of such property and improvements as may from time to time be adopted by the Board of the Association.
  3. Maintenance. Maintenance of such common areas and repairs to any improvements thereon shall be the obligation and responsibility of Declarant until conveyance thereof to the Association; thereafter, the Association shall have the sole responsibility therefor.
  4. Subsequent Dedication. At any time after conveyance to the Association of any common areas, the Association may, upon the affirmative vote of seventy percent (70%) of its memberships offer any such property for dedication to public use. Such offer shall be subject to acceptance by the appropriate governmental authority pursuant to its then applicable standards. During the period of control of the Association by Douglas Brunson or Edward McCaffery, or the survivor of them or their successors, as set forth hereinafter in Section V.B., none of the common areas of the Association shall be offered for dedication.


(Continued on Page 2)

DECLARATION OF PROTECTIVE COVENANTS 1, 2, 3, 4



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