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CITY OF TIGARD
ew BUILDING DIVISION
DECLARATION
OF
PARTY WALL AND MAINTENANCE AGREEMENT
This Declaration of Party Wall and Maintenance Agreement ("Agreement") is made on
this 5th day of March, 2013 by HALLMARK TERRACE, LLC, an Oregon limited liability
company, Owner of Lots 17 - 22, BARROWS ROAD ESTATE, City of Tigard, County of
Washington, and State of Oregon.
RECITALS
Hallmark Terrace, LLC is the Declarant of Barrows Road Estates, a planned community,
subject to the Declaration described below and created by the Declaration and Plat of Barrows
Road Estates.
Barrows Road Estates consists of twenty (22) lots and two (2) common area tracts.
Sixteen lots are improved by a previous Builder & Declarant. Of the remaining 6 lots to be
improved, six of the lots will be improved with multiple sides of a Sixplex structure
t'• In addition to the Declaration, the Declarant will execute and record a Declaration of
Party Wall and Maintenance Agreement separately affecting the remaining Sixplex.
ARTICLE 1
DEFINITIONS
1.1 "Agreement" shall mean this Party Wall and Maintenance Agreement.
1.2 "Association" shall mean the Barrows Road Estates Homeowners' Association.
1.3 "Common Area" shall mean that real property, including any improvements
thereon, designated on the recorded plat of Barrows Road Estates (the "Plat") as a Tract and
intended to be devoted to the common use and enjoyment of the members of the Association.
1.4 "Declaration" shall mean the covenants, conditions, restrictions, and all other
provisions set forth in the Declaration of Covenants, Conditions and Restrictions for Barrows
Road Estates, which was recorded in the Deed Records of Washington County on , as
Document No.
1.5 "Declarant" shall mean Hallmark Terrace, LLC, an Oregon limited Liability
Company, and its successors or assigns, or any successor or assign to all or the remainder of its
interest in the Property.
C.
PAGE 1. PARTY WALL AND MAINTENANCE AGREEMENT
1.6 "Sixplex" shall mean the building, which is divided by Party Walls and which
contains Six Homes that is the subject matter of this Agreement.
1.7 "Home" shall mean any of the portions of the Sixplex, each of which is
located on a Lot, that is designed and intended for use and occupancy as a residence by a single
family, including, but not limited to, the exterior wall framing that is attached to the Party Walls
dividing the Sixplex.
1.8 "Lot" shall mean Lot 17-22 of Barrows Road Estates. "Lots" shall mean all of
said Lots.
1.9 "Mortgagee" shall mean the first mortgagee or beneficiary under a mortgage or
first deed of trust against any of the Lots or the vendor under a land sale contract in respect to the
Lots.
1.10 "Occupant" shall mean the occupant of a Home, whether the Owner, lessee or any
other person authorized by the Owner to occupy the Home.
1.11 "Owner" shall mean the owner of record, whether one or more persons or entities,
of the fee simple title to either Lot or a purchaser in possession of either Lot under a land sale
contract and shall not mean a person or entity that holds an interest in either Lot merely as
security for the performance of an obligation.
1.12 "Party Wall" shall mean the wall dividing the Sixplex into Six Homes, as further
defined in Section 2.1 below.
•
1.13 "Property" shall mean all of the Lots and Common Area of Barrows Road Estates
that are subject to the Declaration.
1.14 All capitalized terms that are used but that are not defined herein shall have the
meanings attributed to them in the Declaration.
PAGE 2. PARTY WALL AND MAINTENANCE AGREEMENT
vi ARTICLE 2
PARTY WALL; DESTRUCTION AND
• MAINTENANCE OF PARTY WALL AND EIGHTPLEX
2.1 Party Wall Definition; General Rules of Law to Apply. The Party Walls shall
divide the Sixplex into six Homes and shall be located on the dividing line between the six Lots.
The Party Wall shall consist of the studs, blocking, insulation, foundation, cement, airspace,
sheetrock and wallboard located in, under or between the wallboard of one Home and the
wallboard of the other Home in the Sixplex. It shall not consist of the paneling, tiles, wallpaper
and paint located on the interior sides of the Party Wall, all of which shall be considered part of
the Home and the maintenance of which shall be the responsibility of the Owner of the Home.
General rules of law regarding party walls shall apply to the Party Wall to the extent that such
rules are consistent with the provisions hereof.
2.2 Destruction by Fire or Other Casualty. If the Party Wall or the Sixplex is
destroyed or damaged by fire or other peril, the provisions of Article 5 of this Agreement shall
apply with regard to repair or reconstruction thereof.
2.3 Weatherproofing. Notwithstanding any other provision hereof, an Owner who,
by his negligent or willful act, causes the Party Wall or the Sixplex to be exposed to the elements
more than is usual shall bear the whole cost of furnishing the necessary protection against such
elements, subject, however, to reimbursement and/or contributions from available insurance
t.• policies.
2.4 Maintenance and Repair. Each Owner shall provide the other with reasonable
notice of any painting, roofing, repair, reconstruction or other maintenance to the Party Wall or
exterior or structure of the Sixplex ("Maintenance Work") that such Owner believes the Sixplex
reasonably needs. Subject to the provisions of Section 2.6, the Owners shall agree on all such
Maintenance Work before any Maintenance Work commences. If the Owners are unable to
agree with respect to the Maintenance Work, then such matter shall be arbitrated pursuant to
Article 6 of this Agreement. Except as otherwise provided herein, the costs of all Maintenance
Work shall be borne equally between the Owner of Lot 17 , the Owner of Lot 18, Owner of Lot
19,Owner of Lot 20,Owner of Lot 21 and the Owner of Lot 22.
2.5 Roofing. The roof of the entire Sixplex must be replaced at one time.
2.6 Right to Maintain, Repair or Reconstruct Without Consent. If, in the
reasonable opinion of an Owner, any Maintenance Work is needed, if the other Owners refuse to
agree to such Maintenance Work, and if it would be imprudent to delay performance of such
Maintenance Work, such Maintenance Work may be completed by the Owner who reasonably
believes it is necessary. In such event, the cost of the Maintenance Work shall be divided
between the Owners in the manner provided in Section 2.4 hereof, unless an arbitrator appointed
pursuant to Article 6 determines that the Maintenance Work was unnecessary or that the cost
should be allocated in a manner other than equally.
PAGE 3. PARTY WALL AND MAINTENANCE AGREEMENT
2.7 Right to Contribution Runs with Land. The right of an Owner to receive
contribution from the other Owner under this Agreement, together with the obligation of an
Owner to contribute to the other Owner under this Agreement, shall be appurtenant to and shall
run with the land and shall pass to each Owner's successors in title.
2.8. Personal Obligation for Assessments. Each Owner, by acceptance of a deed for
such Owner's Lot, whether or not so expressed in such deed, shall be deemed to covenant and to
agree to pay such Owner's share of the costs of the Maintenance Work. No Owner may avoid
liability for the costs of Maintenance Work by non-use or abandonment of the Party Wall or such
Owner's Lot or Home.
2.9 Effect of Non-Payment for Maintenance Work; Remedies. If an Owner fails
to pay for Maintenance Work as required hereunder, the other Owner, in addition to all other
remedies which may be available, shall be entitled to recover from the defaulting Owner the
defaulting Owner's share of the costs for the Maintenance Work,together with interest thereon at
the rate of twelve percent (12%) per annum from the date of expenditure by the non-defaulting
Owner.
2.10 Easements.
2.10.1 Utility Easements. Each Owner shall have an easement through the Party
Wall for the purpose of installing, repairing, replacing, and maintaining utility lines, storm
drains, wires,pipes and conduits.
2.10.2 Access Easements. Each Owner shall have an easement over and upon
• the other Owner's Lot for purposes of inspection of the Eightplex and Party Wall and for
completing any necessary Maintenance Work. In addition, each Owner shall be permitted
reasonable access to the interior of the other Lot Owner's Home, upon reasonable notice, as
necessary to complete any Maintenance Work.
2.11 Damage Caused by or Attributed to Lot Owner. Notwithstanding any other
provision hereof, in the event the Sixplex or Party Wall or the landscaping is damaged by the
Owners of Lots 17-22 or such Owner's Occupants, agents, employees, contractors or invitees,
the damage shall be repaired at the expense of the Owner who caused (or whose Occupants,
agents, employees, contractors or invitees caused) the damage. However, if the damage is
covered by the insurance policy(ies)required to be maintained under this Agreement, the damage
shall be repaired as provided in Article 5.
ARTICLE 3
CONDEMNATION
If all or a portion of the Party Wall or the Sixplex is appropriated as the result of
condemnation or threat thereof,the following rules shall apply:
3.1 Allocation of Condemnation Award. Any condemnation award received by the
Owners with respect to the Party Wall or the Sixplex ("Condemnation Award") shall be allocated
PAGE 4. PARTY WALL AND MAINTENANCE AGREEMENT
to the Owners in proportion to the diminution in fair market value incurred by them with respect
to their respective Lots and Homes as a result of said condemnation.
3.2 Repair and Restoration. Any Condemnation Award shall be used to repair and
restore the Sixplex,Party Wall or the Lots if such repair or restoration is feasible.
3.3 Retention of Rights. This Article 3 shall not be construed to negate the Owners'
individual rights to such incidental relief as the law may provide as a result of the condemnation
of the Party Wall,the Sixplex or the Lots or any portions thereof.
ARTICLE 4
INSURANCE
The Homeowner's Association shall purchase and maintain a policy of casualty insurance
sufficient to cover any loss relating to such Owner's Lot and Home, for one hundred percent
(100%) replacement cost of all improvements on the Owner's Lot without reduction for
coinsurance. Such policy shall insure against perils customarily covered in homeowner policies,
including earthquake and land slippage (with customary deductible levels). Said policy shall
also cover such Owner's interest in the Party Wall and the Sixplex structure and exterior. The
Homeowner's Association shall provide the Owners with copies of such policies or other
appropriate evidence of such insurance coverage at least ten(10) days before the expiration of all
previous insurance coverage.
`• Neither party shall be liable to the other (or to the other's successors or assigns) for any
loss or damage caused by fire or any of the risks covered by the insurance policy required by this
Article 4, and in the event of insured loss, neither party's insurance company shall have a
subrogated claim against the other. This waiver shall be valid only if the insurance policy in
question expressly permits waiver of subrogation or if the insurance company agrees in writing
that such a waiver will not affect coverage under the policies. Each party agrees to use best
efforts to obtain such an agreement from its insurer if the policy does not expressly permit a
waiver of subrogation.
Upon the request of an Owner, the Homeowner's Association shall use his/her best
efforts to have the first Owner's Mortgagee named as an additional insured party under the
Homeowner's Association property insurance policy in respect to the Sixplex.
ARTICLE 5
DAMAGE AND DESTRUCTION
5.1 Insurance Proceeds Sufficient to Cover Loss. If the Party Wall or the Sixplex
is damaged by fire or other casualty, and if the proceeds of the Homeowners' Association
insurance policy are sufficient to pay all costs of necessary repair or reconstruction, such
proceeds shall be applied to such repair or reconstruction. The parties' respective insurance
policies shall be responsible for the cost of repair or reconstruction of the one Party Wall and the
Sixplex's exterior and structure in the following proportions: one-half (1/2) from the policy
maintained by the Owner of Lot 17 and one-half(1/2) from the policy maintained by the Owner
PAGE 5. PARTY WALL AND MAINTENANCE AGREEMENT
of Lot 18. The second Party Wall, exterior and structure shall be in the following proportions:
• one-half(1/2) from the policy maintained by the Owner of lot 18 and one-half (1/2) from the
policy maintained by the Owner of Lot 19 and so on.
5.2 Insurance Proceeds Insufficient to Cover Loss. If proceeds of the
Homeowners' Association insurance policy are insufficient to pay all costs of necessary repair or
reconstruction, the Sixplex nonetheless shall be promptly repaired or reconstructed. Any
proceeds of the Homeowners' Association insurance policy shall be applied toward: (a) the costs
of necessary repair or reconstruction of the Home so insured; and (b) for repair of the Party Wall
and Sixplex's structure and exterior in the proportions referenced in Section 5.1. Each Owner
shall be liable for the costs incurred in repairing or reconstructing his Home, and his share of
costs incurred in repairing or reconstructing the Party Wall and Sixplex's structure and exterior
that are not covered by proceeds from his own insurance policy. Notwithstanding the foregoing,
if fire or another casualty has reduced the value of the Sixplex by three fourths or more, and if
Owner wishes, and all mortgagees, trust deed beneficiaries, land sale contract vendors, and
insurers who have issued policies on the Sixplex agree, the Sixplex shall not be repaired or
reconstructed. In such case, insurance proceeds shall be paid to the covered Owner after the
expenses of demolition, debris removal, and Lot restoration are paid.
5.3 Cooperation; Application of Proceeds. In the event of any insurable loss to the
Sixplex, the Owners shall cooperate with each other and their respective insurers to coordinate
adjustment of the losses and application of insurance proceeds to reconstruction and repair of the
Sixplex..
5.4 Architectural Changes after Damage or Destruction. Repair or reconstruction
of the damaged or destroyed Sixplex means restoring the Sixplex to substantially the same
condition in which it existed before the fire or other casualty, unless other action is agreed to by
the Owners and first trust deed holders, and/or land sale contract vendors. In any event, any
architectural changes shall conform to the Declaration.
ARTICLE 6
ARBITRATION
In the event that a dispute arises between the Owners that arises out of or that relates to
this Agreement, or to the interpretation or breach hereof,the dispute shall be resolved by binding
arbitration in accordance with the then effective arbitration rules of(and by filing a claim with)
Arbitration Service of Portland, Inc. or another organization mutually selected by the Owners
that provides dispute resolution services in the State of Oregon. Filing a claim for arbitration
shall be treated the same as filing in court for purposes of meeting any applicable statutes of
limitation or for purposes of filing a lis pendens. The decision of the arbitrator shall be final,
binding and conclusive, and judgment upon the award rendered pursuant to such arbitration may
be entered in any court having jurisdiction thereof. Interest shall accrue upon the unpaid balance
of any monetary arbitrator's award at a rate equal to twelve percent(12%)per annum.
In the event an Owner initiates arbitration as a result of the other Owner's failure to agree
to the cost or necessity of any Maintenance Work, the arbitrator may award the initiating Owner
PAGE 6. PARTY WALL AND MAINTENANCE AGREEMENT
an amount equal to the estimated cost of the Maintenance Work. In the event the arbitrator
awards the initiating Owner an amount equal to the estimated cost of Maintenance Work to be
completed, the initiating Owner shall be required to hold funds received pursuant to such award
in trust, to apply such funds to the other Owner's prorata share of the Maintenance Work costs,
and to promptly refund any part of the award not utilized for the other Owner's prorata share of
the Maintenance Work costs.
ARTICLE 7
ENFORCEMENT
The Owners and a Mortgagee each shall have the right to enforce all of the covenants,
conditions, restrictions, reservations, easements, liens and charges now or hereinafter imposed
under this Agreement as may appertain specifically to such Owner or entity. Failure by any
Owner or Mortgagee to enforce any such covenant, condition, restriction, reservation, easement,
lien, or charge shall not be deemed a waiver of the right to do so thereafter.
ARTICLE 8
ATTORNEYS' FEES
In the event suit or action is brought, or an arbitration proceeding is initiated, to enforce
or interpret any of the provisions of this Agreement, or that arise out of or relate to this
Agreement, the prevailing party shall be entitled to reasonable attorneys' fees in connection
therewith and post judgment fees of enforcing any judgment, in addition to all other sums
• provided by law. The determination of who is the prevailing party and the amount of reasonable
attorneys' fees to be paid to the prevailing party shall be decided by the arbitrator(s) (with
respect to attorneys' fees incurred prior to and during the arbitration proceedings) and by the
court or courts, including any appellate court, in which such matter is tried, heard, or decided.
However, notwithstanding the foregoing,the arbitrator has the power to require each party to pay
its attorneys' fees, if the arbitrator determines that to be appropriate under the circumstances.
ARTICLE 9
AMENDMENT
The Owners of Lots 17-22 may not modify or terminate Article 2 of this Agreement
without the prior written consent of the City of Tigard.
PAGE 7. PARTY WALL AND MAINTENANCE AGREEMENT
OWNER OF LOT 17
HALLMARK TERRACE, LLC
DATED: , 2013 By:
, Manager
OWNER OF LOT 18
HALLMARK TERRACE, LLC
DATED: ,2013 By:
, Manager
OWNER OF LOT 19
HALLMARK TERRACE, LLC
DATED: , 2013 By:
,Manager
OWNER OF LOT 20
HALLMARK TERRACE, LLC
DATED: , 2013 By:
, Manager
OWNER OF LOT 21
HALLMARK TERRACE, LLC
DATED: , 2013 By:
, Manager
OWNER OF LOT 22
HALLMARK TERRACE, LLC
• DATED: , 2013 By:
, Manager
PAGE 8. PARTY WALL AND MAINTENANCE AGREEMENT
(Acknowledgements on Following Page)
STATE OF OREGON )
) ss. , 2013
County of )
Personally appeared before me the above-named , who, being
duly sworn, did say that he is the Manager of Hallmark Terrace, LLC, an Oregon limited liability
company, and that said instrument was signed in behalf of said company by authority of its
members,and he acknowledged said instrument to be its voluntary act and deed.
Notary Public for Oregon
s
PAGE 9. PARTY WALL AND MAINTENANCE AGREEMENT
1) See detail 2/A8.2 based upon Fig R302.3.1 of the ORSC.
2) A 2x4 furred wall has been added at the back of the Laundry Areas of the middle units. See updated
sheet A1.2
3) A maintenance agreement is being provided.
4) The listing numbers have been added to the rated wall types, see updated sheet G0.2
5) Fireplace vents are on the exterior of the end units. See updated Sheet A1.2
6) A typical demising wall section with corresponding details has been added to Sheet A4.5
7) Floor and roof truss details will be a part of a deferred submital.
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CONDITIONS OF FIRST TWO BUILDINGS. O LANDSCAPE & EROSION CONTROL PLAN "
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/ MARK ELLA
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