Coral Beach Resort HOA Risk Assessment: Program-leaning

02 The five questions

What the documents decide
before your first guest books.

Five dots is the best answer for an owner who wants to run the unit themselves. One dot is a red flag. Open “What the documents say” under each for the exact words.

Can you rent it your way?

Typical

Whether the deed and rules let you rent short-term on your own terms: no requirement to use the on-site program, no minimum stay that kills weekend bookings, and no rule against saying where the condo is.

Daily/weekly/monthly rentals are deed-protected with no minimum stay and owners may self-manage or use any off-site manager, which matches the guide's 'allowed with registration/advertising rules' level: a Myrtle Beach STR business license must be delivered to the on-site desk (all parking permits for the unit are suspended otherwise), listings may not reference the front desk, housekeeping or any amenity, the resort names/images are the operator's service marks with a reserved right to regulate owner advertising, and any rental manager must carry $1M/$2M liability plus a $5M umbrella naming the HOA.

Short-term rentalsAllowed

Minimum stayNone stated

Must use on-site programNo

Owner may rent it personallyYes

Off-site manager allowedYes

Owner-use limitsNone stated; units are restricted to residential use by owners, their families, guests, licensees and invitees, and timeshare/fractional plans are prohibited (Master Deed Art. XIV p. 13).

RegistrationBefore any short-term rental the owner must obtain a City of Myrtle Beach short-term-rental business license and deliver the original to the on-site 2nd-floor check-in desk (designated the building's 'main office'); parking permits for the owner, tenants, agents, contractors and invitees are suspended while no current license is on file (Rules 2026 pp. 1-2). Contractors' names and proof of liability and workers' comp insurance must be filed at the same desk (Rules 2026 p. 2). Any rental management company serving owners must furnish the Association proof of $1M/$2M general liability plus a $5M umbrella naming the HOA as additional insured before operating, and display a contact placard in each unit it manages (Master Deed Art. XV p. 14). Master-key-compliant lock required (Rules 2026 Exhibit B).

Advertising rulesOwners renting personally or through an off-site manager 'shall refrain from referencing the availability' of the commercial service, front desk, maintenance, housekeeping, operations and amenities, in text or photographs, in any electronic, digital, print or other listings or marketing (Rules 2026 p. 2). The resort names 'Coral Beach', 'Coral Beach Resort' and 'Coral Beach Resort & Suites' are service marks of Coral Beach Resort Management, LLC, which retains the right to impose rules on owner/manager advertising to prevent misleading use of the name and photographic images (Master Deed Art. VII p. 10). No 'For Rent' or other signs visible from outside the unit (Master Deed Art. XIX p. 16).

Disclaimer in your listingNot required

Vote to change rental rulesMaster Deed amendments need an affirmative vote of members owning at least 67% of the undivided interest at a special meeting (proposed by a board majority or by 25% of members); the paragraph preserving daily/weekly/monthly rentals (Art. XIV second paragraph) can additionally be amended only with the written consent of the commercial unit owner; the commercial-activity restriction can be amended only by unanimous vote of all owners (Master Deed Arts. XIV and XXIX pp. 13, 30-31). Rules and regulations are adopted by the Board without an owner vote (Master Deed Art. XIII p. 12; By-Laws Art. III Sec. 17(g) p. 68) but cannot bind the commercial unit without its written consent (Art. XV p. 14). By-Laws amend by 67% of total votes (By-Laws Art. VI Sec. 6 p. 74).

What the documents say (13)

“Provided however, nothing herein shall be construed as limiting the right of any OWNER of any UNIT from renting or leasing his, her, their or its UNIT, subject to all terms and conditions of this Master Deed on a daily, weekly or monthly basis.”Master Deed, Article XIV, file page 13

“RESIDENTIAL UNIT OWNERS may rent their UNITS, but are restricted against using any part of the COMMON ELEMENTS to engage in the business of renting.”Master Deed, Article XIV, file page 13

“GRANTOR further discloses that in the case of OWNERS that desire to rent RESIDENTIAL UNITS they own, the owner of the Marks, its successors or assigns, retain rights to impose reasonable rules and regulations concerning the advertisement of UNITS for rent by owners and rental managers to prevent use of the name and photographic images of the Marks in a manner that is misleading to the general public as to the size of inventory of UNITS that is being offered or as to the types of guest services that are available in connection with the rental.”Master Deed, Article VII, file page 10

“As a result, and to avoid any confrontations or other misunderstandings on-property, all Owners who elect to rent their units either personally, or through an off-site rental management company, shall refrain from referencing the availability of such commercial service, front desk service, maintenance services, housekeeping services, operations and amenities (whether in text or photographs). In addition, any electronic, digital, print, or other media listings, advertising, or marketing materials for such units.”Rules and Regulations revised April 2026 (recorded 4/21/2026), COMMERCIAL AREAS, page 2

“In order to help assure compliance with the first sentence of the Master Deed Article XVI, as it applies to Myrtle Beach Code of Ordinances Sections 11:21 & 28(b), the Owner(s) of each Unit offered for rental on a short-term basis shall, prior to any rental of such Unit, obtain and cause to be delivered to the onsite check-in desk located on the 2nd floor of CBR, which desk is hereby designated by the Association as the "main office" of the building for the purposes of Section 28(b), a Myrtle Beach business license for the short-term rental of such Unit, so that such licenses for all Units in the building may be produced upon demand for inspection as required by Myrtle Beach Code of Ordinances Section 28(b).”Rules and Regulations revised April 2026 (recorded 4/21/2026), BUSINESS LICENSE, page 2

“The issuance of parking permits shall be suspended for: (a) Unit owner(s) engaged in short-term rentals, and for their tenants, agents, contractors and invitees, during any and all times that an original, current, valid Myrtle Beach business license for short-term rentals of such Unit has not been delivered by or on behalf of the Unit owner(s) to the onsite check-in desk located on the 2nd floor of CBR”Rules and Regulations revised April 2026 (recorded 4/21/2026), ISSUANCE OF PARKING PERMITS, page 1

“Can the owner use an off-site rental company? Yes Are there restrictions on the use of amenities if they do not use on-site? Yes”Management company answers, February 2024, page 1

“The Property is hereby further restricted such that any and all rental management companies providing services to any UNIT OWNERS at Coral Beach Horizontal Property Regime shall maintain the following amounts of insurance: General liability coverage in an amount of not less than $1,000,000.00 per occurrence with an aggregate of $2,000,000.00 and an umbrella policy of not less than $5,000,000.00 (provided that such coverage is available at standard rates from a licensed insurer within the State of South Carolina), with Coral Beach Property Homeowners Association, Inc, named as an additional insured on all such policies.”Master Deed, Article XV, file page 14

“The ASSOCIATION is not intended to and shall not become involved in the business or practice of rental management of RESIDENTIAL UNITS.”By-Laws (Master Deed Exhibit E), Article I, Section 4, file page 61

“No UNIT or any portion thereof may be submitted to any plan or form of interval or fractional ownership, or any form of timesharing as defined or described in S.C. Code Ann. § 27-32-10, et seq. (2005).”Master Deed, Article XIV, file page 13

“iii) any amendment of the second paragraph of Article XIV, which may be amended only with the express written consent of the OWNER of COMMERCIAL UNIT CU-1”Master Deed, Article XXIX, file page 30

“At such meeting, the amendment or amendments proposed must be approved by an affirmative vote of MEMBERS owning at least sixty-seven (67%) percent of the undivided interest in the COMMON ELEMENTS of the Condominium in order for such amendment or amendments to become effective.”Master Deed, Article XXIX, file page 31

“The foregoing restriction on commercial activities may not be amended without the unanimous vote of all UNIT OWNERS.”Master Deed, Article XIV, file page 13

Will your guests be treated like guests?

Caution

Whether a guest who booked through you gets the same resort as a guest who booked through the front desk: the same pools, parking, wristbands and check-in, or a second-class version of them.

Raised from 1 to 2 on re-check: it is not a full amenity lock-out because the deed gives every owner's guests a perpetual non-exclusive easement over the common elements, the audit treats the pool amenities as common property, and the HOA's own 2026 'commercial areas' list omits the pools, lazy river, water park and spas; but every other amenity (restaurant, cafe, bar and grill, fitness room, bowling/arcade, shop, meeting rooms, business center, guest laundry) is reserved by HOA rule to on-site renters, the operator's policy claims the pools too and management confirms restrictions, there is no front-desk check-in, the owner must arrange a parking permit for every guest vehicle through Association technology, and listings may not mention amenities at all (stricter than a disclaimer).

Amenities for your guestsRestricted

Off limits to your guestsPer HOA Rules 2026 p. 2 (commercial areas limited to on-site renters): Coral Beach Cafe; 4th Floor Recreation Center (bowling alley, game room and grill); Exercise Room; Resort Shop & Gift Store; Meeting Room and Banquet Facilities; 6th Floor Bar & Lounge; Business Center; Sea Level Restaurant; Splash Beach Bar; Splash Oceanfront Grill; Guest Laundry Rooms, Per the on-site operator's Amenity Use Policy pp. 1-2 (reserved for guests who rented through its front desk): expansive oceanfront pool; several kiddie pools; oceanfront lazy river; oceanfront water park; outdoor spa jacuzzis (indoor/outdoor pools and spas); Splash Oceanfront Bar & Grill; Resort Shoppe (6th floor); Fitness Room (6th floor); Sea Level Restaurant breakfast buffet; Coral Bean Cafe; The Entertainment Zone (4th floor bowling, arcade, Chill & Grill snack bar/ice cream); Business Center, Conflict to note: the Master Deed gives every owner and their guests a perpetual non-exclusive easement over the common elements (Art. VII p. 9), the pools and pool equipment are insured and maintained by the HOA ($4,030,000 pools on the property schedule; $239,889 pool line in the 2026 budget), the audit lists 'pool amenities' among the common property owned by the unit owners in common (packet p. 16), and the HOA's own 2026 list of restricted 'commercial areas' does not name the pools, lazy river, water park or spas; the operator's policy nevertheless claims them for its guests, and management confirmed in February 2024 that amenity use is restricted for owners not using the on-site program.

Wristbands & parking passesNo wristband or guest-pass fee appears in any HOA document. Parking: each unit is authorized one space; every owner, guest, tenant and contractor must obtain a parking permit from the on-site 2nd-floor check-in desk, and those using a third-party rental management company obtain the permit 'through the provided technology provided through the Association Office' (Rules 2026 p. 1); cost unstated; permits suspended while the owner's STR business license is not on file; violators towed at the vehicle owner's expense; the budget carries a $1,800 parking-permit software line. The commercial unit holds 10 reserved garage spaces as limited common elements (Master Deed Art. IV p. 8).

Check-inowner handles - the front desk, concierge and key pick-up/drop-off belong to the commercial unit and are reserved for its program guests; the deed bars other owners from using common elements for reservations, key pick-up or front-desk services (Master Deed Art. XIV p. 13; Rules 2026 p. 2); self-managed guests must still collect a parking permit via the Association's technology.

TrashTrash may not be left in hallways or other common areas and must be disposed of in a proper container (Rules 2026 p. 3). The laundry and trash chutes are limited common elements 'for the exclusive use and benefit of COMMERCIAL UNIT CU-1' (Master Deed Art. IV p. 8) although the Association maintains them (Art. XXII p. 19); how off-program guests are expected to dispose of trash is unstated.

ElevatorsElevators are common elements accessed from the ground level; the property has no service elevator (Rules 2026 Exhibit A p. 5); contractors must protect elevators with drapes and floor protection and may not use luggage carts for construction supplies (Exhibit A p. 6); no guest elevator restriction is stated.

Housekeeping & linenOwners may hire independent contractors for daily or weekly maid service, but only the commercial unit owner may use the on-premises maids closets (Master Deed Art. XIV p. 13); laundry chutes are exclusive to CU-1 (Art. IV p. 8); Guest Laundry Rooms are a commercial area limited to on-site renters (Rules 2026 p. 2); rental management companies must post a placard naming whom to contact for cleanliness and linen issues (Master Deed Art. XV p. 14).

What the documents say (12)

“These amenities are reserved exclusively for usage by guests who have rented rooms through the onsite rental management company at the front desk of the resort.”Coral Beach Resort Amenity Use Policy (on-site rental company, operator policy), page 1

“Access to portions of the property's commercial operations and amenities are limited to only those Owners & Guests renting through the on-site commercial management company.”Rules and Regulations revised April 2026 (recorded 4/21/2026), COMMERCIAL AREAS, page 2

“The Commercial areas include Coral Beach Café, 4th Floor Recreation Center (bowling alley, game room, and grill), Exercise Room, Resort Shop & Gift Store, Meeting Room and Banquet Facilities, 6th Floor Bar & Lounge, Business Center, Sea Level Restaurant, Splash Beach Bar, Splash Oceanfront Grill and Guest Laundry Rooms.”Rules and Regulations revised April 2026 (recorded 4/21/2026), COMMERCIAL AREAS, page 2

“Except as may be specifically set forth herein with regard to LIMITED COMMON ELEMENTS, the COMMON ELEMENTS shall be, and the same are hereby declared to be, subject to a perpetual non-exclusive easement in favor of all of the OWNERS of UNITS in the Condominium for their use and the use of their immediate families, guests, licensees and invitees, for all proper and normal non-commercial purposes, and for the furnishing of services and facilities for which the same are reasonably intended, for the enjoyment of said OWNERS of UNITS.”Master Deed, Article VII, file page 9

“These were deeded units owned for the enjoyment of unit owners and guests who participated in the in-house rental program. There were no plans to open these amenities up to all owners for a fee.”Minutes of the 19th Annual Members' Meeting, October 25, 2024, Item 8.C Member Comments, page 4

“Each Unit owner, guest, tenant and contractor must obtain a parking permit from the on-site check-in desk located on the 2nd floor of CBR and owners, guests, tenants and contractors that utilize a third-party rental management company, shall obtain a parking permit through the provided technology provided through the Association Office, before parking at CBR.”Rules and Regulations revised April 2026 (recorded 4/21/2026), ISSUANCE OF PARKING PERMITS, page 1

“Each Unit is authorized 1 parking space.”Rules and Regulations revised April 2026 (recorded 4/21/2026), ISSUANCE OF PARKING PERMITS, page 1

“(C) laundry and trash chutes, which shall be for the exclusive use and benefit of COMMERCIAL UNIT CU-1; (D) Ten (10) parking spaces in the on-site parking garage shall be limited common elements of COMMERCIAL UNIT CU-1;”Master Deed, Article IV, file page 8

“Daily or weekly maid service is permitted by independent contractors acting for one or more UNIT OWNERS, but only the OWNER of UNIT CU-1 shall be entitled to use the on premises maids closets.”Master Deed, Article XIV, file page 13

“Units shall not exceed the recommended maximum occupancy limit. No more than five (5) people in rooms/efficiency units. No more than seven (7) people in suites.”Rules and Regulations revised April 2026 (recorded 4/21/2026), OCCUPANCY OF UNITS, page 3

“Front desk staff will attempt to contact guests who smoke in the units or on the balconies.”Minutes of the 19th Annual Members' Meeting, October 25, 2024, Item 8.C Member Comments, page 4

“Common property elements not recognized as assets in the financial statements consist primarily of elevators, pool amenities, landscaping, parking and other common areas.”Audited Financial Statements 2024 and 2023 (October 24, 2025 Annual Meeting Packet), Note 3, packet page 16

How much work lands on you?

Typical

What the rules make the owner personally responsible for: a local contact who answers in minutes, keys and passes, trash, fines for guest behaviour, vendor hours and elevators.

Re-scored from 2 to 3 against the guide: there is no local-contact rule, no response-time SLA, no service-elevator-only vendor rule and no 30-minute standard, which are the guide's 1-level markers; what applies is registration (STR license lodged at the desk), a prescribed master-keyed lock and door wrap at owner expense with no lockboxes, a parking permit per guest vehicle via Association technology, occupancy caps of 5/7, fines of $150-$1,000 charged to the owner if the guest does not pay, trash chutes and maids closets reserved to the commercial unit, and renovations limited to winter weekdays with $200-plus-daily contractor fines - roughly the guide's 'local contact + registration + own locks' middle tier.

Local contactNo local-contact or agent-of-record requirement is imposed on a self-managing owner by the HOA documents; the deed requires rental management companies (not owners) to display an in-unit placard with contact information for maintenance, cleanliness and linen issues (Master Deed Art. XV p. 14). Violations are reported to the Association's property manager (Rules 2026 p. 4).

Locks & keysMandatory Master Door Lock Policy (Rules 2026 Exhibit B pp. 8-9): from March 1, 2024 every owner had to convert to an approved lock - Schlage FE595 (standard) or Oracode Live 660i Wi-Fi (premium) - plus a Don-Jo stainless wrap-around plate, at owner expense; non-compliant locks after April 30, 2024 are replaced with the Schlage FE595 at owner expense; the Association holds a master key to all units for emergencies and routine pest control; owners on the on-site program need no action because the Association already holds their master key. Lockboxes may not be affixed to any entry door and doors must be kept closed and locked (Rules 2026 p. 3). The deed also lets the Association require a key deposit and charges the owner for making a key if none is deposited (Master Deed Arts. XVII and XXI pp. 15, 19).

FinesFine schedule (unchanged since 2020): health and safety violations $250-$1,000 each; other violations $150-$250 first, $250-$500 second, $500-$1,000 third for the same offense; fines may be treated as assessments and become liens (Rules 2026 p. 4; By-Laws Art. III Sec. 22 p. 71). By-Laws: a fine for an occupant's violation is first assessed against the occupant, and the owner must pay it if the occupant does not; notice, 10-day hearing request and 30-day appeal rights; the Board may also use self-help (towing) or sue, with the violator paying attorney's fees (pp. 71-72). Contractor-policy breaches: owner fined not less than $200 per violation plus a daily fine until remedied (Exhibit A p. 6). Throwing anything from a balcony results in immediate eviction of all occupants (p. 2). Owners are liable for damage caused by their guests or contractors (Master Deed Art. XXX.B p. 32; Rules p. 2). The Board may also suspend a violating owner's vote and right to use the common areas, but may not block ingress or egress to the unit (By-Laws Art. III Sec. 22 p. 71).

Contractors & vendorsContractors must be licensed in the City of Myrtle Beach and file liability and workers' comp certificates at the 2nd-floor check-in desk before any in-unit work, and the owner must give the Association their names (Rules 2026 pp. 1-2). Unit Remodel/Alteration Policy (Exhibit A): Category A minor work 10am-5pm Monday-Friday year-round with advance notice; Category B work (plumbing fixtures, cabinets, refrigerators, flooring, window treatments, electrical/Wi-Fi/cable changes, furnishings, HVAC, walls) requires a Unit Review Application and written approval and may only be done 10am-5pm Monday-Friday between November 1 and March 31, excluding holidays and special events, because there is no service elevator; only licensed general contractors with $1M occurrence-form liability naming the HOA, manager and owner, plus workers' comp and building permits; contractors haul their own debris (no trash chute or dumpsters), protect elevators and corridors, may not use luggage carts, and must park in service areas; 7 days' notice before removing or replacing tile floors.

AlsoOwner maintains and replaces HVAC, appliances, window glass, sliding glass doors and frames, entry doors and interior finishes (Master Deed Art. XXI pp. 18-19); the Board discussed a coming need to replace the sliding glass doors (Minutes 2024 p. 4). Monthly pest-control entry into units (Master Deed Art. XVIII p. 15). STR business license must be delivered to the check-in desk before renting; a parking permit must be arranged for each guest vehicle; occupancy caps of 5 (rooms/efficiencies) and 7 (suites); no smoking or vaping on balconies or in common areas; white balcony furniture only; uniform window-treatment backing; no signs; monthly dues plus an annual insurance assessment each March; owners are advised to carry HO-6 coverage (packet p. 22). Board meets only twice a year (Minutes 2024 p. 4). Where a loss to items the owner must maintain (window glass, sliding glass doors, entry doors, HVAC, appliances) is covered by the master policy, the owner pays the part of the repair that falls within the policy deductible ($25,000 all other perils / $50,000 wind per occurrence) (Master Deed Art. XXI p. 19; ACORD p. 2). Damage to the regime caused by an owner's guests that is not covered by insurance is charged to that owner as an individual assessment, and the Board may levy restoration assessments without an owner vote (Master Deed Art. XXIV p. 24). Unauthorized alterations must be removed within three days of notice or the Association removes them at the owner's cost (Art. XIX p. 16).

What the documents say (16)

“Starting March 1, 2024, all unit owners are required to take necessary steps to transition their current lock systems to a pre-approved locking system along with a standardized door wrap.”Rules and Regulations revised April 2026 (recorded 4/21/2026), Exhibit B Master Door Lock Policy, page 8

“Through the implementation of this policy, the Association will be equipped with a Master Key for all units, facilitating entry during emergencies and for routine pest control.”Rules and Regulations revised April 2026 (recorded 4/21/2026), Exhibit B Master Door Lock Policy, page 8

“For those owners who participate with Coral Beach Rental Management, no action is needed as the Association is in receipt of a master key to your unit.”Rules and Regulations revised April 2026 (recorded 4/21/2026), Exhibit B Master Door Lock Policy, page 9

“Lockboxes may not be affixed to any unit entry door.”Rules and Regulations revised April 2026 (recorded 4/21/2026), UNIT ENTRY DOORS, page 3

“For each health and safety violation: $250.00- $1,000.00 For all other violations: 1st Violation: $150.00-$250.00 for initial violation; 2nd Violation: $250.00-$500.00 for same offense; 3rd Violation: $500.00-$1,000.00 for same offense.”Rules and Regulations revised April 2026 (recorded 4/21/2026), FINES, page 4

“In the event that any occupant of a UNIT violates the Master Deed, By-Laws, or a rule or regulation and a fine is imposed, the fine shall first be assessed against the occupant; provided, however, if the fine is not paid by the occupant within the time period set by the Board, the Owner shall pay the fine upon notice from the ASSOCIATION.”By-Laws (Master Deed Exhibit E), Article III, Section 22, file page 71

“Due to the impacts to the Owners, guests, Common and Limited Common elements of the property during high occupancy periods and in the absence of a service elevator on the property, Category B projects shall only be conducted between the hours of 10:00am - 5:00pm Monday thru Friday, November 1 - March 31 excluding other high occupancy periods such as holidays and/or special events as the Association's Manager and/or Board of Directors may determine.”Rules and Regulations revised April 2026 (recorded 4/21/2026), Exhibit A Unit Remodel/Alteration & Contractor Policy, page 5

“Unit owners shall be subject to a fine of not less than $200.00 for each violation of this policy by their General Contractor and their sub-contractors with an additional fine per day until remedied.”Rules and Regulations revised April 2026 (recorded 4/21/2026), Exhibit A, page 6

“All contractors must carry liability and workman's compensation insurance, and a certificate of insurance for each type of coverage must be filed with the Association at the on-site check-in desk located on the 2nd floor before the contractor performs any work within any Unit at CBR.”Rules and Regulations revised April 2026 (recorded 4/21/2026), UNIT MAINTENANCE/CONTRACTOR WORK, page 2

“Additionally, any and all rental management companies providing services to UNIT OWNERS shall prominently display a placard or other similar materials within each UNIT on their rental program, identifying the name, address, phone number and other contact information for such rental management company and specifically whom to contact for issues regarding the maintenance or cleanliness of the UNIT and/or linen service,”Master Deed, Article XV, file page 14

“To facilitate entry in the event of any such emergency, the OWNER of each UNIT, if required by the ASSOCIATION, shall deposit under the control of the ASSOCIATION a key to such UNIT.”Master Deed, Article XVII, file page 15

“Owners and their guests are also restricted from smoking and/or vaping on any balcony.”Rules and Regulations revised April 2026 (recorded 4/21/2026), SMOKING, page 3

“Discussion was entered about a future need to replace the sliding glass doors as their useful remaining life is expiring. Additional details and adequate notice will be provided as they become available.”Minutes of the 19th Annual Members' Meeting, October 25, 2024, Item 8.C Member Comments, page 4

“the OWNER of such UNIT shall be, in said instance, required to pay such portion of the costs of such maintenance, repair and replacement as shall, by reason of the applicability of any deductibility provision of such insurance, exceed the amount of the insurance proceeds applicable to such maintenance, repair or replacement.”Master Deed, Article XXI, file page 19

“any such deficiency resulting from damage to the Regime Property as a result of the neglect, willful act, or abuse of the Regime Property by any CO-OWNER or his or her guests shall be charged to such CO-OWNER as an individual assessment.”Master Deed, Article XXIV, file page 24

“The Board shall have the power to impose reasonable fines, which shall constitute a lien upon the property of the violating Owner, and to suspend an Owner's right to vote or to use the Common Area for violation of any duty imposed under the Master Deed, these By-Laws, or any rules and regulations adopted hereunder; provided, however, nothing herein shall authorize the ASSOCIATION or the Board of Directors to limit ingress and egress to or from a UNIT.”By-Laws (Master Deed Exhibit E), Article III, Section 22, file page 71

Is the money healthy?

Caution

Whether the association can pay for the building without surprise bills: reserves, special assessments, insurance deductibles, how fast dues are rising, and how much of the fee passes through to a master association.

Special assessments hit in 2023 ($525K) and 2024 ($286K), an insurance-shortfall assessment mechanism now recurs each March, insurance is about 32% of a $4.74M budget after a 66% climb from 2021 to 2025, reserves of roughly $0.8-0.95M cover about a third of $2.83M board-estimated component costs for a 1987 tower with no professional reserve study, and 2025 ran an eight-month operating deficit on $120K of claims; offsets that keep it off the floor are reserve funding at 16.1% of budget (general plus contingency), the 2026 insurance line falling 10.2%, dues growth of 1.2-2.5% for 2025-2026, strong inclusions (in-unit electric, water, cable, internet, pest), a clean audit and a $1.59M operating fund balance.

2026 budget$4,735,665

Dues change+1.2% on the year

Reserves16% of budget

Reserve balance$950,450

Reserve studyNone in the set

Special assessments2023 $525,000 total; $984 to $2,109 per residential unit by type; $42,183 for the commercial unit (payment terms unstated - the notice itself is image-only in the supplied packet) to assist the Association with increasing insurance premiums along with reserve fund expenditures (audited financial statements Note 10, 2025 packet p. 18); 2023 actual insurance expense was $1,446,312 against a $1,225,000 budget; 2024 $286,473 total; $537 to $1,151 per residential unit by type; $23,023 for the commercial unit insurance premium increase and reserve expenditures (audited Note 10, packet p. 18); 2024 actual insurance expense $1,655,626 against a $1,567,000 budget; booked as 'insurance assessment' revenue (Minutes 2024 p. 3); 2025 Annual Insurance Assessment was announced for any shortfall between the budgeted 2024-2025 premium and the actual 2025-2026 renewal, but no amount appears in the documents and the 2026 budget shows the 2025-2026 premium ($1,505,450) came in BELOW the $1,676,000 budgeted, so no 2025 shortfall assessment is evidenced; management reported no known assessments in February 2026 2025 budget footnote and Minutes 2024 p. 4: 'once the premium for the 2025-2026 renewal is established, all owners will be charged for the shortfall'; 2026 Planned 'insurance assessment' to be derived at the early-March 2026 renewal as the difference between actual renewal cost and the insurance reserve bank balance as of March 1, 2026 (balance was $650,021 at 8/31/2025); amount unstated; management stated in February 2026 that no assessment was known at that time insurance renewal shortfall (2026 budget note, packet p. 33)

InsuranceEvidence of property insurance dated March 2025 for the 3/7/2025-3/7/2026 term: total insured values $69,254,150 (building $55,348,650; contents $3,386,000; outdoor property $32,000; pools $4,030,000; parking garage $6,457,500), manuscript special form including earthquake, windstorm/hail, equipment breakdown and ordinance or law, replacement cost 'walls in'. Layered program: $10,000,000 primary (Starstone Specialty 12.5%, Lexington 50%, Palms Insurance 25%, Lloyd's of London 12.5%); $5,000,000 buffer excess (Arch 50%, Trium/Lloyd's 50%); $50,000,000 excess (Evanston 14%, Starstone 35.5%, Axis 15%, Munich Re 10%, Quantum/Palms Specialty 15.5%, Kinsale 10%); $30,014,400 high excess (Landmark American 100%, excludes flood). Liability: commercial general liability $1,000,000 per occurrence / $2,000,000 aggregate (Auto Owners), $5,000,000 umbrella, workers' compensation $1,000,000 (Pennsylvania Manufacturers), crime/employee theft $1,000,000 (Travelers), D&O $1,000,000 (Great American), all 3/7/2025-3/7/2026. Budgeted insurance rose from $1,012,030 (2021) to $1,676,000 (2025), +66%; The 2026 budget carries $1,505,450, stated to be the actual 2025-2026 premium, which is $170,550 (10.2%) BELOW the $1,676,000 budgeted for 2025 (which was the 2024-2025 premium), so the 2025-2026 renewal came in lower than the prior year and the eight-month 2025 insurance expense ran under budget; an insurance assessment is still planned after the March 2026 renewal for any shortfall against the insurance reserve balance (packet pp. 30, 33). The 2024 minutes report the broker expected further increases and that the Association budgets at the prior actual premium and charges owners the renewal shortfall. The commercial unit owner buys its own insurance (Minutes 2024 p. 4). The master policy is 'walls in', and an HO-6 policy with loss-assessment coverage is recommended for owners (packet p. 22). Policy numbers and agent contact details intentionally omitted.

Wind deductible$50,000 per occurrence for Named Storm Wind/Hail after a Lloyd's of London wind-deductible buy-down policy (the underlying percentage deductible it buys down from is not stated); $50,000 per occurrence all other wind; $25,000 all other perils; $50,000 earthquake; $50,000 excess flood per occurrence over the required NFIP underlying, with a $15,000,000 excess-flood sublimit

FloodFlood Zone X. NFIP policies through Wright National Flood Insurance Company: main residential condominium building $51,909,000 building limit (plus $93,000 contents), $1,250 deductible, total annual payment $78,938, term 5/18/2025-5/18/2026; separate general-property policy on the commercial/parking-garage building $500,000 building + $500,000 contents, $1,250 deductible, $3,095 annual, term 5/13/2025-5/13/2026. The layered property program adds $15,000,000 of excess flood; the $30,014,400 high-excess layer excludes flood.

DelinquencyAssessments receivable (net) $56,855 at 12/31/2024 versus $35,346 at 12/31/2023, with a $21,746 allowance and $21,746 bad-debt expense recorded in 2024 (packet pp. 11, 18); $98,090 receivable at 8/31/2025 (packet p. 29); the 2026 budget carries $5,000 bad debt. Policy: retain counsel and place liens at 90 days delinquent (packet p. 18). Master Deed Art. XXVII G-J (pp. 27-28): installments delinquent after 20 days carry a $25 late fee plus interest at the South Carolina legal judgment rate, the Board may accelerate the annual assessment, and the lien may be foreclosed like a mortgage with the Association entitled to rent and a receiver; By-Laws treat a monthly installment as delinquent on the 15th. Management reported no pending litigation in February 2024 and February 2026. On any voluntary sale the buyer is jointly and severally liable with the seller for the seller's unpaid assessments, and the Association must furnish an assessment-status statement on request (Master Deed Art. XXVII L p. 28).

What the documents say (22)

“The 2026 budget's provision for insurance costs reflects the actual premium amount from the 2025-2026 policy period with an additional planned 'Insurance assessment'. This 'Insurance assessment' will be derived at renewal in early March and be assessed based on the difference in the actual insurance renewal costs and the balance in the reserve banking account as of March 1, 2026.”2026 Approved Operating Budget (clean copy in the October 24, 2025 Annual Meeting Packet), Budget 2026 page 1 / Packet page 33

“*Insurance Expense is based on 2024 actual renewing premium, the 2025-2026 and future insurance renewals will result in an Annual Insurance Assessment*”2025 Approved Operating Budget, page 1

“Consequently, once the premium for the 2025-2026 renewal is established, all owners will be charged for the shortfall resulting from the increase.”Minutes of the 19th Annual Members' Meeting, October 25, 2024, Item 8.A 2025 Budget Review, page 4

“During 2024 and 2023, the Association levied special assessments totaling $286,473 and $525,000, respectively, which is to be used to assist the Association for increasing insurance premiums along with reserve fund expenditures. The 2024 special assessment ranged from $537 to $1,151 to the residential unit owners and was $23,023 for the commercial unit owner. The 2023 special assessment ranged from $984 to $2,109 to the residential unit owners and was $42,183 for the commercial unit owner.”Audited Financial Statements 2024 and 2023 (October 24, 2025 Annual Meeting Packet), Note 10, packet page 18

“Regular monthly assessments to residential unit owners ranged from $712 to $1,527 in 2024 and $634 to $1,359 in 2023. The regular monthly assessment to the commercial unit was $30,531 in 2024 and $27,190 in 2023.”Audited Financial Statements 2024 and 2023 (October 24, 2025 Annual Meeting Packet), Note 10, packet page 18

“Accumulated net funds totaling $784,857 (including $1,727 due from the operating fund) at December 31, 2024 and $546,351 (including $46,527 due from the operating fund) at December 31, 2023, are presented on the accompanying balance sheets as a contract liability (assessments received in advance - reserve fund) and are held in separate accounts and generally not available for operating purposes.”Audited Financial Statements 2024 and 2023 (October 24, 2025 Annual Meeting Packet), Note 7, packet page 17

“The estimates for current replacement costs include no provision for the future effects of inflation. Actual expenditures, however, may vary from the estimated amounts and the variations may be material. Therefore, amounts designated for future repairs and replacements may not be adequate to meet future needs.”Audited Financial Statements 2024 and 2023 (October 24, 2025 Annual Meeting Packet), Note 7, packet page 17

“The following is based on estimates conducted by the Board of Directors and presents significant information about the components of common property.”Supplementary Information on Future Major Repairs and Replacements (Un-audited), December 31, 2024, packet page 21 (estimated current replacement costs $2,830,417; 2025 budgeted funding $743,750; reserve contract liabilities $784,857, with pool replacement at ($467,368) and hot water boilers at ($111,454))

“For the years ended December 31, 2024 and 2023, the Association contracted with the Commercial unit owner, who also serves as a board member, to provide bulk maintenance services to the Association.”Audited Financial Statements 2024 and 2023 (October 24, 2025 Annual Meeting Packet), Note 9, packet page 18 (totals $634,575 in 2024 and $613,239 in 2023)

“[The management company's staff accountant] noted that to date, $483,333 had been funded into the reserves. [She] then reported the reserve position (Exhibit "F"), noting that the total assets were $459,237.”Minutes of the 19th Annual Members' Meeting, October 25, 2024, Item 6.C Financial Position Summary, page 3 (speaker name redacted; see also $554,669 insurance escrow and $226,999 insurance-claim cash at 8/31/2024)

“What do they include? Electric, water/sewer, cable, wi-fi, building insurance”Management company answers, February 2024, page 1 (dues quoted at $1,450 per month for that unit type in 2024; transfer fee $150; no capital contribution)

“Are there any special assessments or insurance assessments? At this time there are no known assessments. The insurance renewal is March 2026.”Management company answers, February 2026, page 1 (dues quoted at $843 per month; $200 transfer fee; $325 COA fee)

“The Association's policy is to retain legal counsel and place liens on the properties of homeowners whose assessments are ninety days or more delinquent.”Audited Financial Statements 2024 and 2023 (October 24, 2025 Annual Meeting Packet), Note 10, packet page 18

“Further, a late fee of $25.00 shall be assessed for each installment not paid within twenty (20) days after the due date thereof.”Master Deed, Article XXVII G, file page 27

“Based upon this investigation, Grantor has made an initial contribution in the amount of $850,000.00 to the ASSOCIATION as reserves for replacements and repairs of components of the buildings to help insure that adequate reserves for such repairs and replacements are available.”Master Deed, Article XXXVII, file page 37

“$ 50,000 Named Storm Wind/Hail per occurrence (after Wind Deductible Buy-Back)”ACORD Evidence of Property Insurance, Remarks, page 2

“He shared that Board members had approved $425K for 2025 capital projects.”Minutes of the 19th Annual Members' Meeting, October 25, 2024, Item 8.B 2025 Capital Projects, page 4 (lobby tile and furniture, pool and spa grout, kiddie pool refinishing; 3-year security proposal)

“39500 - General Reserve Funding 643,750 663,063, 19,313 39510 - Contingency Reserve Funding 100,000 100,000 -”2026 Approved Operating Budget (clean copy in the October 24, 2025 Annual Meeting Packet), Budget 2026 page 1 / Packet page 33

“Reserve Funding from Operating $ 429,167 $ 429,167 $ - Contingency Funding from Operating 66,667 66,667 -”Reserves Income Statement, eight months ended August 31, 2025 (October 24, 2025 Annual Meeting Packet), packet page 32

“83300 - Insurance Expense 1,676,000 1,505,450 (170,550)”2026 Approved Operating Budget (clean copy in the October 24, 2025 Annual Meeting Packet), Budget 2026 page 1 / Packet page 33

“UPFRONT INSURANCE PREMIUM TO COLLECT AT 2022 CLOSINGS ... OF Exec Suite-Types E&F 157 255000 40035000 0.003415 3,924.87 ... TWO MONTHS' WORKING CAPITAL TO BE COLLECTED AT CLOSING ... OF Exec Suite-Types E&F 157 255000 40035000 0.003415 2,133.89”2022 Approved Operating Budget (2023 Special Assessment Notice packet), packet pages 13 and 15 (schedules below the 2022 dues table)

“Upon the initial sale of each UNIT by the GRANTOR, each OWNER purchasing such UNIT from the GRANTOR shall pay over to the ASSOCIATION an amount equal to two (2) times the amount of the regular, monthly assessment applicable to such UNIT, which shall not be a prepaid assessment, but shall constitute a separate payment to provide initial operating funds, and an advance insurance assessment sufficient to pay the OWNER'S share of insurance for one year.”Master Deed, Article XXVII C, file page 25

Who's really in charge?

Caution

Who holds the power the documents hand out: an owner-elected board, or a developer or commercial-unit owner with deed-level rights over rentals, guest services and the building's name.

The Board is owner-elected and developer control ended in 2020, but the commercial unit holds a deed-level monopoly on rental management, front desk, key pick-up and all guest services on the common elements, consent rights over rules affecting it, pool-deck changes, repair deferrals and amendments to Arts. XXII and XXXII, a non-recusal clause, a seat on the Board, $634K a year in related-party maintenance contracts, and the commercial restriction can only be changed by unanimous vote; owners also have no vote on budgets or assessments.

StructureOne association

Commercial unitYes, with its own deed rights

On-site operatorCoral Beach Resort Management LLC (owner of the 'Coral Beach' service marks; the rules call it Coral Beach Rental Management / the on-site commercial management company)

BoardFive directors elected by the owners for two-year staggered terms after the Class II control period (By-Laws Art. III Sec. 5 p. 65); the developer/commercial unit's power to appoint the Board expired no later than October 1, 2020 (Master Deed Art. XXXII p. 34). The commercial unit owner may still appoint a non-voting ex officio director (By-Laws p. 66), and the 2024 audit discloses that the commercial unit owner 'also serves as a board member'. Directors may be removed by majority vote; the Board meets at least twice a year and in practice twice (Minutes 2024 p. 4); two directors were re-elected to two-year terms in October 2024.

Developer rightsGrantor (Condo Conversions CB, LLC) reserved a Phase II expansion option exercisable only until October 1, 2020 and only with the commercial unit owner's consent (Arts. III pp. 4-7); marketing/sales-office rights while owning 10+ units; consent to structural alterations while owning any unit (Art. XIX p. 16); scrivener-error amendment right (Art. XXIX p. 31). No document indicates the Grantor still owns units; its Class II membership ended by October 1, 2020.

Commercial-unit rightsDeed-level monopoly on commercial and guest-service activity: only the commercial unit may operate rental management, reservations, key pick-up/drop-off, front desk, concierge, cable/internet/phone service, shops, restaurants, lounge, pool bar, etc., and residential owners may not use the common elements to engage in the business of renting (Art. XIV p. 13; definitions p. 35). CU-1 holds exclusive easements for advertising throughout the corridors, elevators, exterior and parking areas, food and beverage sales and live/recorded music (11 a.m. to midnight) on the pool decks, outdoor grilling, the telephone/cable/internet wiring, the marquee sign's movable type, and 10 garage spaces (Arts. IV, VIII, XVI, XXII pp. 8, 10, 15, 19). Rules cannot bind CU-1 without its written consent (Art. XV p. 14); no pool deck or pool amenity may be altered without its consent (Art. XX p. 18); the Board may not defer scheduled major repairs without its consent and Art. XXII cannot be amended without it (p. 20); CU-1 may alter its own unit and limited common elements without Board approval (p. 17); its board representatives need not recuse on contracts with the Association (Art. XXXII p. 34); it may specifically enforce the commercial restriction and recover attorney's fees (Art. XXX.F p. 33); the commercial restriction is amendable only by unanimous vote, and the rental paragraph and Art. XXXII only with CU-1 consent (Arts. XIV, XXIX pp. 13, 30). The 'Coral Beach' names are service marks of Coral Beach Resort Management, LLC, which may regulate owner advertising (Art. VII p. 10). The commercial unit owner itself (who 'also serves as a board member') was paid $634,575 in 2024 and $613,239 in 2023 under the bulk maintenance, general maintenance, landscape, janitorial and telephone contracts, and separately paid $65,492 (2024) and $132,093 (2023) of Association invoices that the Association reimbursed (audit Note 9, packet p. 18).

VotesOne vote per unit weighted by percentage interest (By-Laws Art. II Sec. 2 p. 62); the commercial unit's 8.0348% interest now carries an 8.0348% vote (its 4x Class II weighting ended by October 1, 2020); quorum 51% of the total vote; proxies must be delivered 48 hours before the meeting; 'majority' means more than 50% of total percentage interest (pp. 63). Owners do not vote on budgets or special assessments: the Board adopts the budget, levies assessments and may borrow for repairs or budget shortfalls without member approval; a majority member vote is needed only when borrowing is for new or improved amenities or would exceed 10% of budgeted gross expenses (By-Laws Art. III Secs. 17 and 20 pp. 65, 67). Board meetings are open to owners, who may speak only if a director asks on their behalf (Sec. 15 p. 64).

Changing the deedMaster Deed: 67% of undivided interest at a special meeting called on a proposal by a majority of the Board or 25% of members; percentage-interest and assessment-basis changes need unanimous owner and mortgagee consent; Grantor and commercial-unit rights need their written consent (Art. XXIX pp. 30-31). By-Laws: 67% of total votes, with Grantor and CU-1 reserved rights needing their consent (Art. VI Sec. 6 p. 74). Termination of the regime requires unanimous consent of owners and lienholders (Art. XXVIII p. 30). Rules: adopted by the Board.

Disputes or lawsuitsManagement stated 'No' pending litigation in February 2024 and February 2026; the audit notes only routine collection and covenant matters (packet p. 18). The Master Deed contains a jury-trial waiver and a binding arbitration clause (in Horry County) for disputes over the deed, the parties' rights, and construction/condition claims, excluding assessment-collection suits and CU-1's suits to enforce Article XIV (Arts. XXXVIII-XXXIX pp. 38-40). The 2025 operating statements show $120,000 of unbudgeted insurance claim costs and reserve spending on flood repairs to interior hallway flooring (packet pp. 30, 32).

What the documents say (18)

“At the first annual meeting of the ASSOCIATION following the expiration or sooner termination of the Class II control period, five (5) Directors shall be elected.”By-Laws (Master Deed Exhibit E), Article III, Section 5, file page 65

“The power of the OWNER of the COMMERCIAL UNIT, its successors or assigns, to designate Directors as above referred to shall terminate no later than the 1st day of October, 2020.”Master Deed, Article XXXII, file page 34

“In addition to the Directors elected under the preceding paragraph, the Owner of Commercial Unit CU-1 may designate and appoint a representative to serve as an additional ex officio Director.”By-Laws (Master Deed Exhibit E), Article III, Section 5, file page 66

“Any representative of the OWNER of the COMMERCIAL UNIT serving on the Board of Directors of the ASSOCIATION shall not be required to disqualify himself upon any vote on any management contract or other matter between the OWNER of the COMMERCIAL UNIT and the ASSOCIATION where the OWNER of the COMMERCIAL UNIT may have a pecuniary or other interest.”Master Deed, Article XXXII, file page 34

“Provided, however, any such rules or regulations that purport to diminish, abrogate or in any way affect the COMMERCIAL UNIT, including the LIMITED COMMON ELEMENTS appurtenant thereto or other rights reserved herein in favor of such UNITS or the OWNERS thereof shall not be binding upon the OWNER of such COMMERCIAL UNIT, its successors and assigns, unless and until such OWNER consents in writing to the same.”Master Deed, Article XV, file page 14

“Notwithstanding anything herein to the contrary, no removal, alteration or improvement of the pool deck or pool amenities shall take place unless the OWNER of COMMERCIAL UNIT CU-1 has first consented in writing to the same.”Master Deed, Article XX, file page 18

“The Board of Directors of ASSOCIATION may not defer or delay the timing of the repair and replacements of the portions of the COMMON ELEMENT as set forth in the Maintenance Schedule without the written consent of the OWNER of the COMMERCIAL UNIT and all such repairs and replacements must be undertaken by ASSOCIATION at the times provided in the Maintenance Schedule unless the OWNER of the COMMERCIAL UNIT otherwise consents in writing.”Master Deed, Article XXII, file page 20

“no commercial activity or activities shall be conducted within any UNIT, COMMON ELEMENT or LIMITED COMMON ELEMENT, nor shall the same be modified or altered to accommodate any such commercial use, including, but not limited to, operation of general rental management service for the RESIDENTIAL UNITS and related accommodation services such as reservations, key pick up and drop off, front desk, concierge, and cable, movie, internet and telephone services to RESIDENTIAL UNITS, shops, stores, sales, gaming machines if permitted by law, cell towers, guest laundries, meeting rooms, restaurant, lounge, game room, real estate sales, timeshare or interval ownership sales, accommodations, health spa, night clubs or any combination of such uses related to any phase.”Master Deed, Article XIV, file page 13

“Any OWNER of a COMMERCIAL UNIT shall have the right to specifically enforce, inter alia, the provisions of Article XIV restricting the right and authority of the ASSOCIATION or the OWNERS of RESIDENTIAL UNITS to conduct commercial activities. In any action for specific performance pursuant to this ARTICLE XXX, paragraph F, the prevailing party shall be entitled to reasonable attorney's fees and costs in prosecuting or defending such actions.”Master Deed, Article XXX F, file page 33

“GRANTOR discloses that the names "Coral Beach", "Coral Beach Resort" and "Coral Beach Resort & Suites" (collectively, the "Marks") are service marks of Coral Beach Resort Management, LLC, a South Carolina limited liability company.”Master Deed, Article VII, file page 10

“The percentage weight that the vote of each UNIT shall carry shall equal the percentage undivided interest in the COMMON ELEMENTS for that UNIT as set forth in Exhibit C of the Master Deed.”By-Laws (Master Deed Exhibit E), Article II, Section 2, file page 62

“Subject to the provisions hereinafter provided, these By-Laws may be amended only by the affirmative vote (in person or by alternate) or written consent of Voting Members representing sixty-seven (67%) percent of the total votes of the ASSOCIATION, including any UNITS owned by the GRANTOR.”By-Laws (Master Deed Exhibit E), Article VI, Section 6, file page 74

“GRANTOR HEREBY DECLARES, ON BEHALF OF ITSELF, THE ASSOCIATION, AND ANY OWNER OF A UNIT, THAT ANY AND ALL RIGHT TO TRIAL BY JURY SHALL BE WAIVED BY GRANTOR, THE ASSOCIATION, OR ANY OWNER OF A UNIT IN ANY DISPUTE, PROCEEDING, CASE OR CONTROVERSY ARISING UNDER OR RELATED TO THE WITHIN MASTER DEED.”Master Deed, Article XXXVIII, file page 38

“No management contract may have a term in excess of two (2) years.”By-Laws (Master Deed Exhibit E), Article III, Section 18(b), file page 69

“Any pending litigation in this community/building? No Does the developer of this community/building have the First Right of Refusal? No”Management company answers, February 2026, page 1 (same answers given in February 2024)

“The commercial unit owner pays monthly HOA dues and purchases their own insurance.”Minutes of the 19th Annual Members' Meeting, October 25, 2024, Item 8.C Member Comments, page 4

“The Board of Directors shall have the power to borrow money for the purpose of repair or restoration of the Common Areas or for the purpose of funding budgetary shortfalls, without the approval of the membership; provided, however, the Board shall obtain prior Voting Member approval by majority vote for special assessments in the event that the proposed borrowing is for the purpose of modifying, improving, or adding amenities, or the total amount of such borrowing exceeds or would exceed ten (10%) percent of the budgeted gross expenses of the ASSOCIATION for that fiscal year.”By-Laws (Master Deed Exhibit E), Article III, Section 20, file page 67

“The Commercial unit owner paid various invoices on behalf of the Association. Reimbursements totaled $65,492 and $132,093 for the years ended December 31, 2024 and 2023, respectively.”Audited Financial Statements 2024 and 2023 (October 24, 2025 Annual Meeting Packet), Note 9, packet page 18

03 Pros and cons

For the owner who runs it themselves.

The same building reads very differently to an owner on the rental program and an owner on Airbnb. This list is for the second one.

Working for you

The deed itself guarantees the right to rent on a daily, weekly or monthly basis, and that paragraph cannot be amended without the commercial unit owner's written consent on top of a 67% owner vote, so short-term rental rights are unusually well protected (Master Deed, Art. XIV p. 13 and Art. XXIX p. 30).
Self-managing and off-site managers are expressly contemplated and management confirmed owners may use an off-site rental company (Rules 2026, COMMERCIAL AREAS p. 2; Management company answers, February 2024 p. 1).
No minimum stay, no owner-use cap, no rental registration fee and no mandatory disclaimer text appear in any supplied document (Master Deed Art. XIV p. 13; Rules 2026 pp. 1-4).
Dues bundle in-unit electricity, water/sewer, cable, wi-fi, building insurance and monthly pest control, so a self-managing owner carries few separate utility bills (Management company answers February 2024 and February 2026 p. 1; 2026 Budget p. 1; Master Deed Art. XVIII p. 15).
The Board is owner-elected (five directors, two-year terms) and the developer's Class II control and board-appointment rights ended no later than October 1, 2020 (By-Laws Art. III Sec. 5, Master Deed file p. 65; Master Deed Art. XXXII p. 34).
Dues increases have slowed sharply - 2.53% for 2025 and 1.23% for 2026 after 16%, 8% and 12% in 2022-2024 (2025 Budget p. 1; 2026 Budget / Annual Meeting Packet 2025 p. 33).
Audited financial statements with a clean opinion, an operating fund balance of $1,589,650 and $2,175,762 total cash at December 31, 2024 (Annual Meeting Packet 2025, pp. 9-11).
The property is in flood zone X with NFIP building coverage of $51,909,000 in place, and a Lloyd's buy-down policy reduces the named-storm wind deductible to a flat $50,000 per occurrence (the underlying deductible it buys down from is not stated) (ACORD Evidence of Property Insurance pp. 1-2, 5).
No pending litigation and no developer right of first refusal; transfer fee only $200 plus a $325 COA fee (Management company answers, February 2026 p. 1).
The approved premium lock option (Oracode Live 660i) is described as Wi-Fi capable and the standard Schlage FE595 is a keypad lock, so keyless self check-in is workable within the master-key policy (Rules 2026, Exhibit B p. 8).
Management contracts are capped at two years and an audited annual report is required every year (By-Laws Art. III Secs. 18-19, Master Deed file pp. 69-70).
The 2026 budget's insurance line is $1,505,450, 10.2% below the $1,676,000 budgeted for 2025, because the actual 2025-2026 premium came in lower; the eight-month 2025 insurance expense also ran under budget (2026 Budget / Annual Meeting Packet 2025 pp. 30, 33).
Reserve funding (general $663,063 plus contingency $100,000) is 16.1% of the 2026 budget, above the 15% benchmark, and both lines are actually transferred to the reserve fund (2026 Budget / Annual Meeting Packet 2025 pp. 12, 32-33).
Off-program guests keep a deed-level, perpetual non-exclusive easement over the common elements, and the audit classifies the pool amenities as common property owned by all unit owners, so pool-deck access does not depend on the on-site program (Master Deed Art. VII p. 9; Annual Meeting Packet 2025 Note 3 p. 16).

Watch-outs

The on-site rental company's Amenity Use Policy reserves the oceanfront pool, kiddie pools, lazy river, water park, spas, bar and grill, restaurants, cafe, fitness room, shop, bowling/arcade and business center 'exclusively' for guests who booked through its front desk, and the HOA's management confirmed amenity restrictions for owners not using the on-site program (Amenity Use Policy pp. 1-2; Management company answers, February 2024 p. 1).
The current rules make the commercial areas (cafe, 4th-floor recreation center, exercise room, resort shop, meeting rooms, 6th-floor bar and lounge, business center, restaurant, Splash bar and grill, guest laundry) off-limits to owners and guests not renting through the on-site company, and the Board said there are no plans to open them to all owners even for a fee (Rules 2026, COMMERCIAL AREAS p. 2; Minutes October 25, 2024 p. 4).
Whether off-program guests may use the pools is contested: the deed grants every owner's guests a non-exclusive easement over the common elements and the HOA pays to maintain and insure the pools, yet the operator's policy claims them; expect friction on the pool deck (Master Deed Art. VII p. 9; Amenity Use Policy p. 1; ACORD property schedule p. 2).
Owners who rent personally or through an off-site manager may not mention front desk, maintenance, housekeeping or the resort amenities in listings, text or photos, and the resort names and images are service marks of Coral Beach Resort Management, LLC, the on-site operator, which may regulate owner advertising (Rules 2026 p. 2; Master Deed Art. VII p. 10).
A Myrtle Beach short-term-rental business license must be delivered to the on-site check-in desk before renting, and all parking permits for the unit are suspended until it is on file; every guest vehicle needs a permit and each unit gets one space (Rules 2026 pp. 1-2).
Mandatory master-key lock policy: approved Schlage or Oracode lock plus steel door wrap at owner expense, the Association holds a master key to every unit, and lockboxes are banned - self check-in must work within these constraints (Rules 2026 pp. 3, 8-9).
Occupancy is capped at 5 in rooms/efficiencies and 7 in suites, limiting group bookings (Rules 2026 p. 3).
Insurance is the largest cost at about 32% of the 2026 budget, budgeted premiums rose 66% from 2021 to 2025, and the Association now levies a separate insurance assessment each March for the renewal shortfall on top of dues (Budgets 2021-2026; 2026 Budget note, Annual Meeting Packet 2025 p. 33).
Special assessments of $525,000 in 2023 ($984-$2,109 per residential unit) and $286,473 in 2024 ($537-$1,151 per unit) were levied for insurance and reserve shortfalls, and the 2023 notice itself was not readable in the supplied packet (Audited financial statements Note 10, Annual Meeting Packet 2025 p. 18).
Reserves are thin for a 1987 oceanfront high-rise: $784,857 at December 31, 2024 (about $950,000 by August 2025) against $2.83 million of board-estimated component costs, with pool replacement, boilers and cooling tower components already negative, and no professional reserve study was supplied (Annual Meeting Packet 2025 pp. 17, 21, 31).
The commercial unit owner sits on the Board, need not recuse on Association contracts, and was itself paid $634,575 in 2024 for bulk maintenance, landscaping, janitorial and telephone services - the budget's third-largest line - while also paying and being reimbursed for $65,492 of Association invoices (Audited Note 9, Annual Meeting Packet 2025 p. 18; Master Deed Art. XXXII p. 34).
Deed-level commercial monopoly: only the commercial unit may run rental management, front desk, key pick-up, concierge or any business on the common elements; it can enforce this with attorney's fees, the restriction needs a unanimous vote to change, rules cannot bind it without consent, and nothing on the pool deck can be altered or scheduled repairs deferred without its consent (Master Deed Arts. XIV, XV, XX, XXII, XXX pp. 13-14, 18, 20, 33).
Trash chutes and maids closets are limited common elements reserved to the commercial unit, so an off-program owner's cleaners cannot use them and trash handling for off-program guests is unstated (Master Deed Art. IV p. 8 and Art. XIV p. 13; Rules 2026 p. 3).
Any rental manager serving owners must carry $1M/$2M liability plus a $5M umbrella naming the HOA and post an in-unit placard - a hurdle for small off-site managers (Master Deed Art. XV p. 14).
Interior renovations beyond paint require written approval and may only be done weekdays 10-5 between November 1 and March 31; there is no service elevator; contractor breaches cost the owner at least $200 plus a daily fine (Rules 2026 Exhibit A pp. 5-6).
Owners maintain their own sliding glass doors, windows, entry doors, HVAC and appliances, and the Board flagged a looming sliding-glass-door replacement for the 1987 building (Master Deed Art. XXI pp. 18-19; Minutes October 25, 2024 p. 4).
Operations ran a $67,472 deficit through August 2025 with $120,000 of unbudgeted insurance claims and flood repairs to hallway flooring, and assessments receivable climbed to $98,090 (Annual Meeting Packet 2025 pp. 29-32).
Fines run $150-$1,000 per violation and are charged to the owner if the guest does not pay; guests smoking on balconies or throwing anything off one trigger removal or eviction (Rules 2026 pp. 2-4; By-Laws Art. III Sec. 22, Master Deed file p. 71).
All deed-related disputes are subject to a jury-trial waiver and binding arbitration in Horry County (Master Deed Arts. XXXVIII-XXXIX pp. 38-40).
The Board meets only twice a year and the 2025 meeting packet included no minutes of that meeting, so governance transparency is limited (Minutes October 25, 2024 p. 4; Annual Meeting Packet 2025 p. 1).
The amenity restriction, the advertising ban, the occupancy caps, the master-key lock policy and the lockbox ban were all added in the April 2026 rules revision - none appears in the 2020 or 2021 rules - so the HOA has recently tightened the regime for off-program owners and the Board can adopt further rules without an owner vote (Rules 2020 pp. 1-3; Rules 2021 pp. 1-3; Rules 2026 pp. 1-9; Master Deed Art. XIII p. 12).
Expect closing-time collections: the deed requires two months' assessments plus a year's insurance share on initial sales, and the 2022 budget schedules an upfront insurance premium ($2,155-$4,618 by unit type) and two months' working capital ($1,172-$2,510) at 2022 closings; management now quotes a $200 transfer fee and $325 COA fee and denied a capital contribution in 2024, so confirm what applies to a resale (Master Deed Art. XXVII C p. 25; Special Assessment packet pp. 13, 15; Management company answers February 2024 and February 2026 p. 1).
If a storm or other covered loss damages owner-maintained items (sliding glass doors, windows, HVAC), the owner pays the part within the master policy's $25,000-$50,000 per-occurrence deductible, and guest-caused damage not covered by insurance is charged back as an individual assessment (Master Deed Art. XXI p. 19 and Art. XXIV p. 24; ACORD p. 2).
Owners never vote on budgets, dues or special assessments; the Board sets them and may borrow for shortfalls without member approval, and can suspend a violating owner's common-area use (By-Laws Art. III Secs. 17, 20 and 22, Master Deed file pp. 65-71).

Unit type	Per month	Per year
Angle OF Room Types A&B (26 units, 0.1875%) - 2026 total of $502 regular + $235 insurance dues; 2025 was $728	$737	$8,844
Angle OF Efficiency Type D (58 units, 0.2143%) - 2026; 2025 was $833; confirmed by the February 2026 management answer of $843	$843	$10,116
OF Exec Suite Types E&F (157 units, 0.3415%) - 2026 ($915 regular + $428 insurance; total cell illegible in OCR, computed from assessment revenue x ownership %); 2025 was $1,327	$1,343	$16,116
1 BR Condo Type H (24 units, 0.3817%) - 2026 (computed; 2025 printed $1,483; 2024 $1,450)	$1,501	$18,012
1 BR Condo Type I (24 units, 0.3950%) - 2026 (computed; 2025 printed $1,535)	$1,554	$18,648
Lockout Unit (6 units, 0.4017%) - 2026 (computed; 2025 printed $1,561)	$1,580	$18,960
Commercial Unit CU-1 (1 unit, 8.0348%) - 2026 ($21,525 regular + $10,080 insurance); 2025 was $31,220	$31,605	$379,260

Coral Beach Resort.

The documents behind this page.

What the documents decide
before your first guest books.

Can you rent it your way?

Will your guests be treated like guests?

How much work lands on you?

Is the money healthy?

Who's really in charge?

For the owner who runs it themselves.

Working for you

Watch-outs

What you pay, and where it goes.

Regular assessments, 2026

What the dues cover

Where the budget goes

What to put in the house manual.

What to ask the association for.

Have the documents read
for the building you are weighing.

Coral Beach Resort.

The documents behind this page.

What the documents decidebefore your first guest books.

Can you rent it your way?

Will your guests be treated like guests?

How much work lands on you?

Is the money healthy?

Who's really in charge?

For the owner who runs it themselves.

Working for you

Watch-outs

What you pay, and where it goes.

Regular assessments, 2026

What the dues cover

Where the budget goes

What to put in the house manual.

What to ask the association for.

Have the documents readfor the building you are weighing.

What the documents decide
before your first guest books.

Have the documents read
for the building you are weighing.