Ocean Dunes Tower I HOA Risk Assessment: Workable with rules

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?

Favorable

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.

No rental restriction, minimum stay, registration or on-site-program requirement exists and the rules contemplate an owner's rental agent, but the permission is by silence in a 1985 deed and the Board can adopt use rules on its own.

Short-term rentalsAllowed

Must use on-site programNo

Owner may rent it personallyYes

Off-site manager allowedYes

Owner-use limitsnone stated

Registrationunstated (no registration, decal or rental-agent approval requirement appears in the deed, by-laws or rules)

Advertising rulesunstated (none in the documents)

Disclaimer in your listingNot required

Vote to change rental rulesMaster Deed amendments require 'an affirmative vote of all the members owning a UNIT in the CONDOMINIUM and entitled to vote' (Art. XXVIII), i.e. unanimity; By-Laws amendments require two-thirds of the total value of the property (By-Laws Art. 9(c)); but the Board alone may adopt rules and regulations governing use of units and common elements (Art. XII).

What the documents say (6)

“Except for the Commercial U~IT, its LIMITED COMMON ELEMENTS and easements each UNIT is hereby restricted to residential use by the owner or owners thereof , their immediate families , guests , and invitees”Master Deed, Art. XIII, page 5

“All present or future owners, tenants, or any other person who might use the facilities of the CONDOMINIUM in any manner, are subject to the provisions of this Master Deed and all documents appurtenant hereto and incorporated herewith, and the mere acquisition or rental of any UNIT, or the mere act of occupancy of any UNIT, shall signify that the provisions of this Master Deed are accepted and ratified in all respects.”Master Deed, Art. XXX, page 20

“It is also each owner's responsibility to ensure that the rental agent and guests understand and observe all rules & regulations.”Rules & Regulations, General, page 1

“The Commercial UNIT may be used for a ny lawful purpose including , but not limited to, offices and reception a ·reas for the pu·rpose of general rentals , management , sales of UNITS located in Oceara Dunes Tower I and other unrelated properties.”Master Deed, Art. XIII, page 5

“At such meeting, the amendment or amendments proposed must be approved by an affirmative vote of all the members owning a UNIT in the CONDOMINIUM and entitled to vote in order for such amendment or amendments to become effective.”Master Deed, Art. XXVIII, page 18

“adopt , promulgate and enforce such rules and regulations governing the use of tbe ONI'fS and COMMON ELEMENTS, as the Board of Directors of the ASSOCIATION may deem to be in the best interests o.f the CONDmiiNIUM.”Master Deed, Art. XII, page 5

Will your guests be treated like guests?

Favorable

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.

Guests and invitees share the owners' easement over all HOA common elements with no passes or disclaimer, but check-in is unstated and access to the Grantor-owned recreation deck and any resort amenities is not addressed.

Amenities for your guestsSame as program guests

Off limits to your guestsRecreational deck over the western parking area is reserved to be owned by the Grantor/its assigns, not the HOA; guest access to it and to any adjacent resort facilities is unstated (Master Deed Art. I-A)

Wristbands & parking passesNo wristband, pass or decal system is stated. Parking: 'Vehicles should be parked only in marked designated spaces. Only vehicles fitting within one parking space may be parked on the premises.' Motorcycles are not permitted for guests or tenants (owners only); trailers banned (Rules). Exclusive-use parking spaces may be assigned by Association rules (Deed Art. VII).

TrashBuilding has a trash chute (2026 Budget line 53470 'Trash Chute Expenses'); HOA pays trash removal. No owner-haul rule stated.

ElevatorsTwo elevators in the middle of the western side serve every level (Exhibit A); no service-elevator or vendor-elevator rule stated.

Housekeeping & linenunstated; the maid rooms on the upper levels are limited common elements of the commercial unit (Exhibit A), so housekeeping storage in the building belongs to the commercial-unit owner. A common laundry exists (2026 budget: laundry & vending income $7,700; laundry expense $1,500).

What the documents say (4)

“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, and invitees, for all proper and normal purposes”Master Deed, Art. VII, page 3

“This easement is resecved for the purpose of constructing and maintaining a deck for rect: e ational facili t ies to be owned by GRANTOR, it successors and assigns.”Master Deed, Art. I-A, page 1

“Motorcycles are not permitted by guests or tenants. Motorcycles are allowed for ; owners only. Trailers are not permitted to be parked on property.”Rules & Regulations, Parking, page 1

“Limited Common Elements appurtenant to the co~mercial unit are the maid rooms located on the upper levels and depicted on Page A-3 of the Plans.”Master Deed, Exhibit A, page 24

How much work lands on you?

Favorable

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.

Nothing beyond normal hosting is required (no local contact, SLA, trash hauling or fine schedule), though owners answer for guest conduct, may have to deposit a key, and cannot use contractors Memorial Day to Labor Day.

Locks & keysAssociation may require each owner to deposit a key to the unit for emergency entry (Deed Art. XVI). No lock-type or key-handling rule for guests. Owners must also admit the Association's agent or other owners' representatives for common-element maintenance at reasonable times with reasonable advance notice (Deed Art. XVII).

FinesNo fine schedule in the documents. Owner is responsible for conduct of and damage by family, guests, service personnel, rental agent and lessees (Rules General; Deed Art. XXIX B). Association recovers costs and attorney's fees in any successful enforcement proceeding (Deed Art. XXIX C). Violations are reported to Coastal Association Management (Rules).

Contractors & vendorsContractors are not permitted to work in the units from Memorial Day to Labor Day; owners are responsible for their contractors and for clean-up; no change to the look of common areas without prior Board approval (Rules Maintenance/Contractor Work). Structural changes, balcony enclosure, exterior changes and storm panels/awnings need written Association consent (Deed Art. XVIII).

AlsoWindow treatments visible from outside must have a uniform white backing; nothing hung from balcony railings; balconies not for storage; no personal items in hallways or stairwells; common areas non-smoking; no grills in units or on balconies; no pets; fireworks prohibited (Rules). Owner must keep balcony clean (Deed Art. XX). A purchaser must notify the Association in writing of the acquisition with recording details, and every owner must keep the Association informed of any mortgage on the unit (Deed Art. XXV).

What the documents say (4)

“Each owner is responsible for the proper conduct of his/her own family, his/her guests and service i personnel as well as any damage to property caused by these persons.”Rules & Regulations, General, page 1

“Contractors are not permitted to work in the units from Memorial Day to Labor Day”Rules & Regulations, Maintenance/Contractor Work, page 1

“The owner or owners of each UNIT shall be liable for the expense of any maintenance, repair or replacement rendered necessary by his act, neglect or carelessness, or by that of any member of his family , or his or their guests , employees, agents or lessees , but only to the extent that such expense is not met by the proceeds of insurance carried by ASSOCIATION .”Master Deed, Art. XXIX B, page 19

“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, Art. XVI, page 6

Is the money healthy?

Favorable

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.

Reserve contribution is $96,000 (18.5%) of a balanced $519,008 budget with no special assessment and strong inclusions, but insurance is 24% of spend and no deductible, reserve balance, reserve study or prior-year figures are provided, so trend cannot be checked.

2026 budget$519,008

Reserves18% of budget

Special assessmentsNone in the documents

InsuranceSingle 'Insurance Expense' line of $125,000 in the 2026 budget; no policy breakdown, deductible or prior-year figure. Deed Art. XXIII requires full replacement-value casualty cover on units and common elements including windstorm 'if available', liability and workers' compensation, with proceeds payable to an Insurance Trustee; the owner pays the deductible share on any insured loss to items the owner must maintain (Art. XX). If casualty proceeds are insufficient the Association pays the shortfall from the Reserve for Replacements and, failing that, levies an assessment on all owners; damage confined to a unit is assessed to that unit's owner (Art. XXIII). Owner contents/liability insurance is optional ('may, at his own expense') (Art. XXII).

DelinquencyAssessment is in default if unpaid on the due date; Board may accelerate the entire remaining annual assessment on 10 days' notice; if unpaid 20 days after due date the Association may enforce by any means under the Act including foreclosure; delinquent sums bear interest at the highest lawful rate or 10%; owner personally liable for interest, collection costs and attorney's fees (Deed Art. XXVI G-H, J). 2026 budget carries $1,000 bad debt and $0 late-fee income. On any voluntary conveyance the buyer is jointly and severally liable with the seller for assessments unpaid at closing, and the Association must furnish an assessment-status statement on the owner's written request (Deed Art. XXVI L).

What the documents say (10)

“41000 Association Fees $511,308”2026 Budget, page 1, Income

“Total Income $519,008”2026 Budget, page 1

“50500 Insurance Expense $125,000”2026 Budget, page 1, Administrative Expense

“55100 Reserves Expense $96,000”2026 Budget, page 2, Other Expenses

“Ocean Dunes Tower 1 2026 Approved Annual Operating Budget Based on 81 Units”2026 Budget, page 1 footer

“the assessments made by ASSOCIATION shall be in such proportion that the amount of assessment levied against each owner of a UNIT and his UNIT shall bear the same ratio to the total assessment made against all owners of UNITS and their UNITS as does the undivided interest in COMMON ELEMENTS appurtenant to each UNIT bear to the total undivided interest in COMMON ELEMENTS appurtenant to all UNITS.”Master Deed, Art. XXVI A, pages 13-14

“In the e ve nt any assessment, installment, or accel erated assessments are not paid within twenty (20) days after their due date, the ASSOCIATION, through its Board of Directors, may proceed to enforce and collect the said assessments against the UNIT owner owing the same in any manner provided for by the Act, including the right of foreclosures and sale.”Master Deed, Art. XXVI G, page 15

“said Board of Directors shall have the authority to levy such additional assessment or assessments as it shall deem to be necessary.”Master Deed, Art. XXVI C, page 14

“In any voluntary conveyance of a UNIT, the Grantee shall be jointly and severally liable with the GRANTOR for all unpaid assessments against GRANTOR made prior to the time of such voluntary conveyance”Master Deed, Art. XXVI L, page 17

“may be paid by ASSOCIATION out of its Reserve for Replacements Fund, and if the amount in such Reserve for Replacements Fund is not sufficient, then ASSOCIATION shall levy and collect an assessment against the owners of all UNITS”Master Deed, Art. XXIII, page 11

Who's really in charge?

Typical

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.

Owner-elected board with developer rights long expired, but the commercial unit's rental/management business is protected at deed level and the deed can only be amended unanimously.

StructureOne association

Commercial unitYes, with its own deed rights

BoardFive directors; elected by plurality at the annual meeting (first Saturday in May per 1993 amendment); two-year staggered terms; non-cumulative voting; at least a majority must be members (By-Laws Art. 4; 1993 Amendment). The Board may also grant easements over the regime property without an owner vote, under an irrevocable power of attorney every owner gives by accepting a deed (Deed Art. VII).

Developer rightsExpired. Grantor's right to appoint a board majority while owning five or more units terminated December 31, 1986 (By-Laws Art. 4(a)); deed Art. XXXI left the year blank. Grantor retains a perpetual easement over the western parking area for a recreational deck it owns and may assign (Art. I-A), and any change to Grantor's reserved rights needs Grantor's written consent (Art. XXVIII). Art. XXXI also gave the Grantor an absolute right to lease or sell any unit it owned on any terms, and exempted its directors from recusal on Grantor contracts; these matter only if the Grantor still owns units, which the documents do not say.

Commercial-unit rightsOne commercial unit (0.9421% interest) on level 1 with upper-level maid rooms as its limited common elements. It may be used for any lawful purpose including rentals, management and sales offices for this and unrelated properties (Art. XIII); the Association may take no action that would limit its permitted activities (Art. XII); its owner may alter the unit and its LCE without Board consent if structure is unaffected (Art. XVIII). The deed does not require owners to use the commercial unit for rentals or guest services.

VotesMembership voting is governed by Article IV of the Articles of Incorporation (not included; only the certificate of incorporation is attached). Quorum is 51% of the value of the property; a majority of units represented at a quorate meeting binds the members unless a higher vote is required; proxies valid for one meeting (By-Laws Art. 2).

Changing the deedMaster Deed: proposed by a Board majority or owners of a majority of units, then must be approved by an affirmative vote of all members owning a unit (Art. XXVIII); changes to percentage interests or assessment basis also need all mortgagees. By-Laws: two-thirds of the total value of the property (Art. 9(c)). Termination of the regime: unanimous owners and lienholders (Art. XXVII).

Disputes or lawsuitsunstated; 2026 budget carries only $1,000 for legal professional services.

What the documents say (7)

“Provided, however , that no action shall be permitted which would limit the owners of the Commercial UNIT from carrying on its permitted activities.”Master Deed, Art. XII, page 5

“The power of the OWNER to designate Directors as above referred to shall terminate on the 31st day of December, 1986.”Master Deed Exhibit D (By-Laws), Art. 4(a), page 32

“The first Board of Directors of the ASSOCIATION and succeeding Boards of Directors shall consist of five (5) persons.”Master Deed Exhibit D (By-Laws), Art. 4(a), page 32

“In order for such amendment or amendments to become effective, the same must be approved by an affirmative vote of the members owning not less than two-thirds of the total value of the property in the CONDOMINIUM.”Master Deed Exhibit D (By-Laws), Art. 9(c), page 38

“To approve or disapprove proposed purchasers of UNITS and to exercise or waive the ASSOCIATION'S right of first r7f~sal.of a proposed sale of a member's UNIT in the manner spectf~ed 1n the Master Deed”Master Deed Exhibit D (By-Laws), Art. 4(j)(v), page 34

“The owner of the Commercial UNIT may, without the consent of the Board of Directors of the ASSOCIATION, make such changes in the Commercial UNIT, including LIMITED COMMON ELEMENTS appurtenant thereto, as it deems advisable so long as such change does not affect the structural integrity of the building.”Master Deed, Art. XVIII, pages 6-7

“Each Co-owner, by the acceptance of the deed to his UNIT does hereby grant to the Board of Directors an irrevocable power of attorney to execute, deliver and record for and in the name of each Co-owner, such instruments as may be necessary and proper to the granting of such easements.”Master Deed, Art. VII, page 3

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

Neither the deed nor the rules impose any rental restriction, minimum stay, registration, decal, advertising rule or on-site-program requirement; the rules expressly contemplate an owner's own 'rental agent' (Master Deed Art. XIII, XXX; Rules General).
The Master Deed can only be amended by a vote of all unit owners, so a new deed-level rental restriction cannot be imposed over a dissenting owner (Master Deed Art. XXVIII).
Owners' guests and invitees hold the same perpetual easement over the common elements (pool, laundry, elevators, parking) as owners, with no wristband or pass system (Master Deed Art. VII).
Reserves are funded at $96,000, 18.5% of the 2026 budget, and the budget balances to $0 net income, though the operating contingency line is budgeted at $0 (2026 Budget p. 2).
No special assessment appears in the 2026 budget or the deed set (2026 Budget).
Dues cover cable TV, internet, water & sewer, trash, pest control, elevators, generator, ice machines and pool (2026 Budget pp. 1-2).
Owner-elected five-member board; the developer's board-appointment right expired December 31, 1986 (By-Laws Art. 4(a)).
Building has a trash chute, two elevators and on-site maintenance staff, so there is no owner-haul-trash or vendor-elevator rule (2026 Budget; Exhibit A).
An annual CPA audit must be furnished to every member by April 1 (By-Laws Art. 7(e)).
No fine schedule, response-time rule or local-contact requirement appears anywhere in the documents (Rules; Master Deed).

Watch-outs

The level-1 commercial unit may run 'general rentals, management, sales' for this and unrelated properties, the Association may take no action limiting it, and it controls the building's maid rooms, so a competing on-site rental desk is protected at deed level (Master Deed Art. XII, XIII, XVIII; Exhibit A).
The recreational deck over the western parking area is owned by the Grantor or its assigns, not the HOA, and may be joined to adjacent resort property; nothing in these documents says whether owners or their guests may use it or what it costs (Master Deed Art. I-A).
The Board alone may adopt rules governing the use of units and common elements, so rental-related rules can appear without an owner vote even though the deed itself is frozen by its unanimity requirement (Master Deed Art. XII, XXVIII).
Contractors are not permitted to work in units from Memorial Day to Labor Day, which blocks in-season repairs and renovations between guests (Rules, Maintenance/Contractor Work).
Guests and tenants may not bring motorcycles, no pets, no grills, and no trailers; owners must police their guests and rental agent and pay for any damage they cause (Rules General, Pets, Grilling, Parking).
Insurance is $125,000, 24% of the 2026 budget, with no wind/named-storm deductible, flood cover or prior-year premium disclosed for a 15-level tower recorded in 1985 in Myrtle Beach (2026 Budget p. 1; Master Deed Exhibit A).
No reserve balance, reserve study, prior-year budget or financial statements were provided, so dues trend and reserve adequacy cannot be checked (2026 Budget).
The budget is 'Based on 81 Units' with no per-unit fee table, while the deed allocates by percentage interest (penthouses 3.7684% vs 1.1733%); the per-unit dues above are computed, not stated (2026 Budget p. 1; Master Deed Exhibit B).
On default the Board may accelerate the whole year's assessment and foreclose once 20 days late, with interest at the highest lawful rate plus attorney's fees (Master Deed Art. XXVI G-J).
A buyer taking a unit by ordinary sale is jointly and severally liable with the seller for any assessments unpaid at closing, so get the Association's written assessment-status statement before closing (Master Deed Art. XXVI L).
The By-Laws refer to an Association right of first refusal on unit sales 'in the manner specified in the Master Deed', but the recorded deed text contains no such article; confirm with the Association before relying on free transferability (By-Laws Art. 4(j)(v), 6(b)).
The Association may require every owner to deposit a unit key for emergency entry (Master Deed Art. XVI).
The recorded deed's first paragraph names the regime 'Ocean Dunes Tower II', a drafting error in the title document (Master Deed p. 1).

Unit type	Per month	Per year
Standard residential unit, 1.1733% interest (78 units) - computed as 1.1733% x $511,308 association fees	$500	$5,999
Penthouse 1 / Penthouse 2, 3.7684% interest each - computed	$1,606	$19,268
Commercial unit, 0.9421% interest - computed	$401	$4,817
Simple equal split of $511,308 over the budget's stated 81 units (for comparison only; deed allocates by percentage)	$526	$6,312

Ocean Dunes Tower I.

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.

Ocean Dunes Tower I.

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.