Patricia Grand 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.

STR is allowed with no minimum stay, no owner-use cap and no on-site program requirement, and owner-authorized rental managers are contemplated, but the deed gives the commercial units a permanent monopoly on rental management, reservations, key pick-up, front desk and concierge services and bars owners from using any common element for the business of renting (so no on-site key handoff or lockbox), and the Grantor's successors can impose advertising rules on owners and their managers.

Short-term rentalsAllowed

Must use on-site programNo

Owner may rent it personallyYes

Off-site manager allowedYes

Owner-use limitsunstated (no owner-use caps in the deed)

RegistrationNo rental registration requirement in the deed. A purchaser must notify the Association in writing of the transfer with the recording information (Art. XXVI); the owner must deposit a unit key with the Association if the Association requires it (Art. XVII); tenants and occupants are bound by the Master Deed by the act of renting or occupying (Art. XXXI).

Advertising rulesThe Grantor (and its successors/assigns) reserved the right to impose reasonable rules on how owners and rental managers advertise units for rent, to prevent use of the name and photographs of Patricia Grand in a way that misleads the public about inventory size or available guest services; owners may use the name 'Patricia Grand' when referring to the unit as allowed by S.C. Code 27-31-120. No actual advertising rules are on file.

Vote to change rental rulesGeneral Master Deed amendments: 67% of the undivided interest in the Common Elements (Art. XXIX). The Article XIV restriction on commercial activities (which includes the rental-management/front-desk monopoly of the commercial units) may not be amended without the consent of the Grantor, its successors and assigns, AND the unanimous vote of all unit owners; rights reserved to the commercial units may be altered only with the written consent of the Grantor and all commercial unit owners (Art. XIV, Art. XXIX).

What the documents say (8)

“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.”Master Deed, Article XIV, page 12

“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. Daily or weekly maid service is permitted by independent contractors acting for one or more UNIT OWNERS, but only the owner of UNIT C-l shall be entitled to use the on premises maids closets.”Master Deed, Article XIV, pages 12-13

“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”Master Deed, Article XIV, page 12

“(iii) in the case of owners that desire to rent RESIDENTIAL UNITS they own, 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 Patricia Grand 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, page 9

“The foregoing restriction on commercial activities may not be amended without the consent of the GRANTOR, its successors and assigns, and the unanimous vote of all UNIT 0 WNERS.”Master Deed, Article XIV, page 13

“The ASSOCIATION is not intended to and shall not become involved in the business or practice of rental management of RESIDENTIAL UNITS.”Master Deed, Exhibit E By-Laws, By-Laws Article I, Section 4, page 54

“the Board of Directors of the ASSOCIATION or any other person authorized by it or any other person or entity authorized by the UNIT OWNER (including rental managers and their agents), shall have the right to enter such UNIT for the purpose of remedying or abating the cause of such emergency”Master Deed, Article XVII, page 14

“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, Article XXXI, page 30

Will your guests be treated like guests?

Typical

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.

Off-program guests share the pool/lazy river/hot tub easement but the owner handles check-in and keys, the lobby is ingress/egress only, the exercise room and other hotel amenities are commercial property, and C-1 may close the pool deck for up to 12 hours for resort functions.

Amenities for your guestsMost, not all

Off limits to your guestsFront desk, reservations, key pick-up/drop-off and concierge services (reserved to the commercial units; off-program guests get none from the Association), Exercise room (part of commercial Unit C-1, not a common element; the 2026 HOA budget pays a $9,000 'Exercise Room Lease', so owner access likely exists in practice but it is a leased privilege, not a deed right), Game room, gift shop and bar (part of Unit C-1) and restaurant/lounge/meeting room (Unit C-2) - commercial, no owner easement, Lobby and lobby entrance are C-1 limited common elements; owners and guests have an easement only for ingress and egress, Pool area, solarium, jacuzzi, lazy river, hot tub and pool decks are C-1 limited common elements that the C-1 owner may close to other owners for up to 12 consecutive hours for resort functions with posted notice

Wristbands & parking passesunstated in the deed. The parking garage sits on easement land governed by a 1985/1986 Easement and Parking Agreement with Patricia Parking Corporation; its assessments are a Common Expense. The Grantor and its successors reserved the easement rights to any parking spaces in excess of the number legally required for the units (Exhibit A), so the regime's guaranteed parking is only the code-minimum count. The 2026 budget funds a Parking Attendant ($25,000) and Parking Garage Expenses ($135,396). Any pass/decal system would be in rules not on file.

Check-inowner handles (the deed reserves front desk, key pick up and drop off, reservations and concierge to the commercial units and bars owners from using common elements for the business of renting)

TrashThe deed lists 'the carts area, trash chutes/rooms' among the limited common elements 'for the exclusive use and benefit of COMMERCIAL UNIT C-l' (Art. IV(C)), while the Association maintains the trash chute (Art. XXII) and budgets $8,000 for 'Trash Removal Carts'. Practical trash access for off-program guests is unstated.

ElevatorsElevators are common elements maintained by the Association (Art. XXII); no service-elevator or vendor-elevator rule in the deed. The C-1 owner holds an exclusive advertising/signage/food-and-beverage easement over corridors, passageways and elevators (Exhibit B).

Housekeeping & linenOwners may use independent contractors for daily or weekly maid service, but only the C-1 owner may use the on-premises maid closets (Art. XIV). Linen/laundry rooms are C-1 limited common elements or part of C-1.

What the documents say (7)

“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”Master Deed, Article VII, page 8

“the OWNER of each UNIT, his or her family members, guests, invitees, and licensees shall have an easement over the LIMITED COMMON ELEMENTS appurtenant to COMMERCIAL UNIT C-l designated as solarium,jacuzzi, lazy river, pool area, hot tub, and pool decks for the use and enjoyment thereof, except during limited periods, not to exceed twelve (12) consecutive hours during which other UNIT OWNERS may be excluded by the OWNER of COMMERCIAL UNIT C-l for resort functions.”Master Deed, Exhibit B, Exhibit B, page 42

“The OWNER of each UNIT, his or her family members, guests, invitees, and licensees shall have an easement over the LIMITED COMMON ELEMENTS appurtenant to COMMERCIAL UNIT C-I designated as the Lobby and Lobby Entrance as reasonably necessary for providing ingress and egress to their UNIT.”Master Deed, Exhibit B, Exhibit B, page 42

“UNIT C-l consists of all areas indicated as such on the Plans with diagonal hatching, including without limitation the following: First Level: The areas designated as gift shop, bar, administration area, manager, secretarial, game room, and storage. Second Level: The area designated as exercise. Third Level: The area designated as laundry/storage.”Master Deed, Exhibit B, Exhibit B, page 41

“(C) the carts area, trash chutes/rooms, vending areas, storage and mechanical areas, maid closets and roofs of buildings for the exclusive use and benefit of COMMERCIAL UNIT C-l”Master Deed, Article IV, page 7

“Only the OWNER(S) of COMMERCIAL UNITS shall be entitled to conduct commercial activities (including without limitation food and beverage service, and retail sales) on or upon the COMMON ELEMENTS, including the pool decks, and/or rooftops.”Master Deed, Article XIV, page 12

“Reserving, however, to the GRANTOR, its successors and assigns, the easement rights pursuant to the above-referenced Easement Agreement pertaining to the parking spaces, if any, in excess of the number of parking spaces required by applicable statute, ordinance or regulation to be provided for the UNITS of Patricia Grand Horizontal Property Regime.”Master Deed, Exhibit A, Exhibit A, Parcel II, page 39

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 in the deed (no local contact, SLA, registration or trash rules) apart from a key deposit on request, monthly pest-control entry and owner liability for guest fines; current rules are not on file.

Locks & keysIf required by the Association, each owner must deposit a key to the unit under the Association's control for emergency entry (Art. XVII); if the owner fails to do so and the Association must enter to perform neglected maintenance, the cost of making a key is charged to the owner and becomes a lien (Art. XXI as amended). Rental managers and their agents authorized by the owner may also enter in emergencies.

FinesThe Board may impose reasonable fines (a lien on the unit) and suspend voting and common-area use rights for violations of the Master Deed, By-Laws or rules; a fine for an occupant's violation is first assessed against the occupant, but if unpaid within the Board's deadline the owner must pay it (By-Laws Art. III Sec. 22). Notice with at least 10 days to request a hearing, hearing before a Covenants Committee, appeal to the Board within 30 days; the Association may also use self-help (including towing) or sue and recover attorney's fees. No fine schedule is on file. Owners are liable for damage caused by guests or lessees not covered by insurance (Art. XXX.B).

Contractors & vendorsunstated (no vendor hours, elevator or insurance requirements in the deed; independent maid contractors permitted but may not use the C-1 maid closets)

AlsoOwner maintains HVAC, appliances, utility fixtures, window and sliding-door glass (Association replaces glass only when the frame is replaced, per Fourth Amendment), walls, interior ceilings/floors and furnishings; owner pays any Association insurance deductible attributable to in-unit repairs (Art. XXI as amended). Association or its contractor may enter monthly for pest control spraying (Art. XVIII). No structural changes, balcony enclosures, exterior changes, antennas/satellite dishes, clotheslines or exterior-visible signs including 'For Sale' signs; uniform window-treatment backing required; balconies may hold only normal patio furniture (Art. XIX). Unauthorized alterations must be removed within 30 days of notice. Late fee $25 per installment over 30 days late, interest, acceleration and foreclosure for assessments 20+ days late (Art. XXVII.G).

What the documents say (5)

“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, page 14

“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.”Master Deed, Exhibit E By-Laws, By-Laws Article III, Section 22, page 64

“In that regard, ASSOCIATION, or its designated contractor may perform monthly service for pest control which may include spraying within each UNIT and each Owner of a UNIT is hereby so notified.”Master Deed, Article XVIII, page 14

“Further, a late fee of$25.00 shall be assessed for each installment not paid within thirty (30) days after the due date thereof.”Master Deed, Article XXVII.G, page 24

“Such OWNER shall further be responsible and liable for maintenance, repair and replacement of any and all window glass, including the glass of any sliding glass doors (but not the frames, glass, etc. of windows and sliding glass doors when the frames are in need of maintenance, repair, or replacement, in which case the same shall be maintained, repaired, and replaced by the ASSOCIATION as a Common Expense)”Fourth Amendment to Master Deed, Section 2 (replacement Article XXI), page 2

Is the money healthy?

Typical

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 15% of revenue and dues cover in-unit electricity, cable and internet, but the 2026 budget shows a $317,702 deficit after $332,000 of sliding-door loan debt service, insurance is 18.8% of revenue, dues are high, and no reserve study or prior-year comparison is on file.

2026 budget$3,324,287

Reserves15% of budget

Special assessmentsNone in the documents

InsuranceBudget line 4307 Insurance $625,000 is the largest single expense. The Association must carry full replacement-value casualty insurance on units and common elements including windstorm, wind-driven rain, water and flood 'if available' (Art. XXIV). Owners pay any deductible attributable to in-unit repairs (Art. XXI). No policy declarations, premium history or deductible figures are on file.

Floodunstated (deed requires flood coverage 'if available' as part of the Association casualty policy, Art. XXIV.A)

DelinquencyBudget provides $6,000 doubtful accounts and $400 late-fee income on $3.30M of assessments; no delinquency report on file. Deed: default on due date, Board may accelerate the annual assessment, enforcement/foreclosure after 20 days, interest at a Board-set rate, $25 late fee after 30 days, personal liability plus attorney's fees; in a lien foreclosure the Association may collect market rent from the owner and have a receiver appointed; buyer in a voluntary sale is jointly liable for the seller's unpaid assessments (Art. XXVII.G-L). By-Laws treat a monthly installment as delinquent on the 15th.

What the documents say (13)

“3001 - Regular Assessments 3,298,387.08 3002 - Interest Income 25,000.00 3003 - Late Fees 400.00 3006 - Misc Income 500.00 Total 3000 - Revenues 3,324,287.08”2026 Profit & Loss Budget Overview, page 1

“4307 - Insurance 625,000.00”2026 Profit & Loss Budget Overview, page 1

“4502 : General Reserve 500,000.00 4503 - Capital Projects 300,000.00”2026 Profit & Loss Budget Overview, page 2

“Total Expense 3,309,989.00 Net Ordinary Income 14,298.08 Other Income/Expense Other Expense 4570 - Debt Service for Sliding Doors 332,000.00 Total Other Expense 332,000.00 Net Other Income (332,000.00) Net Income (317,701.92)”2026 Profit & Loss Budget Overview, page 2

“the Association's Board of Directors approved a sliding door replacement project, which is funded in part by a loan from Synovus Bank ("Lender")”Fourth Amendment to Master Deed, Recitals, page 1

“Expenses declared common expenses by provisions of this Master Deed, including electricity charges for lighting, heating and air conditioning all units;”Master Deed, Article XXXVI.G.2, page 32

“Any and all assessments made by the Patricia Parking Corporation with respect to the Property in accordance with the Easement and Agreement referenced in Exhibit A, the rights to which relating to the Property are submitted hereby.”Master Deed, Article XXXVI.G.4, page 33

“the assessments made by the ASSOCIATION shall be in such proportion so 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, Article XXVII.A, page 22

“C-l $3,514 2.4091 % C-2 $5,082 3.4841 % C-3 $62,470 42.8282 %”Master Deed, Exhibit C, Exhibit C, page 47

“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 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, and the total amount of such borrowing exceeds or would exceed ten (10%) percent of the budgeted gross expenses”Master Deed, Exhibit E By-Laws, By-Laws Article III, Section 20, page 63

“The building was constructed in two phases in 1988 and 1990. Grantor hereby discloses to each OWNER that the building was inspected by engineers who issued a property condition assessment report on November 13, 1998”Master Deed, Article XXXVII, page 34

“Grantor has made an initial contribution in the amount of $160,000.00 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. In addition, the OWNER of COMMERCIAL UNIT C-1 shall be responsible for the following items: 1. Elevators: A one time replacement of the elevators within the Property, up to a maximum total cost of $200,000.00.”Master Deed, Article XXXVII, page 34

“The annual report referred to above shall be prepared on an audited basis, by an independent certified public accountant for each fiscal year.”Master Deed, Exhibit E By-Laws, By-Laws Article III, Section 19(g), page 63

Who's really in charge?

Red flag

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.

Although the Board is owner-elected and developer appointment rights sunset in 2020, the deed grants the commercial units a permanent monopoly on rental management, front desk and guest services (changeable only with Grantor consent plus a unanimous vote), the commercial units hold 48.7% of the weighted vote (C-3 alone 42.8%) under plurality elections and a 51% quorum so they can block any amendment and dominate elections, the Grantor's successors keep perpetual consent rights, and disputes go to mandatory arbitration.

StructureOne association

Commercial unitYes, with its own deed rights

BoardFive directors elected by the members (initial staggered 3/2/1-year terms, then two-year terms, unlimited consecutive terms); directors need not be unit owners; removal with or without cause by majority vote of the membership; nominations by a Board-appointed Nominating Committee plus floor nominations; Board meetings open to owners; at least two Board meetings per year (By-Laws Art. III). Officers elected annually by the Board. No management contract may exceed three years (By-Laws Art. III Sec. 18(b)); common-management or cost-sharing agreements with other entities need two-thirds of all directors (Sec. 21). Developer (Class II) Board-appointment right and veto terminated no later than January 1, 2020.

Developer rightsGrantor (Patricia Grand Resort, LLC, now PG Resort, LLC) Class II control, Board-appointment right and Board/committee veto expired no later than January 1, 2020 (Art. XXXII; By-Laws Art. II Sec. 2, Art. III Secs. 2-3), as did the right to add Phases II-III. Rights that survive for the Grantor 'its successors and assigns': consent required to amend any Grantor-reserved right (Art. XXIX), to amend Article XXII (Association maintenance) and the Article XIV commercial-activity restriction; rules affecting the commercial units are not binding on the Grantor without its written consent (Art. XV); retention of the 'Patricia Grand' name and signage easement and the right to impose owner-advertising rules (Art. VII); right to correct errors or make lender-required changes without owner consent (used for the 2019 Fourth Amendment). The Grantor or an affiliate may be employed as managing agent and Grantor representatives need not recuse on management-contract votes (By-Laws Art. III Sec. 18; Art. XXXII).

Commercial-unit rightsDeed-level monopoly: only the commercial unit owners may conduct any commercial activity on the property, expressly including general rental management, reservations, key pick-up/drop-off, front desk, concierge, cable/internet/phone services, food and beverage, retail and child activity programs on common elements including pool decks and rooftops (Art. XIV). C-1 holds, as limited common elements, the lobby, pool/lazy river/hot tub/solarium/pool decks, trash chutes/rooms, cart areas, vending, storage, maid closets and roofs, plus a perpetual exclusive easement for advertising, signage and commercial activity over corridors, elevators, building exterior and parking garage (Art. IV, Exhibit B); it may close the pool amenities to owners for up to 12 hours for resort functions. The telephone switchboard belongs to the C-1 owner (Art. VIII). Commercial unit owners may alter their units structurally without Board consent (Art. XIX) and may sue to enforce the commercial restriction with attorney's fees (Art. XXX.F). C-3 (hotel rooms) carries 42.8282% of all votes and assessments.

VotesOne vote per unit weighted by percentage interest in the Common Elements (By-Laws Art. II Sec. 2); quorum 51% of the total vote; 'majority' means more than 50% of total percentage interest. The three commercial units together hold 48.7214% of the vote (C-3 alone 42.8282%), so the C-3 owner is nearly a majority by itself, can single-handedly defeat any 67% amendment, and needs only about 2.3% of residential interest to make a quorum. Directors are elected by plurality ('the candidates receiving the largest number of votes shall be elected', By-Laws Art. III Sec. 7), so the commercial bloc can elect its slate unless the 133 residential owners vote as a block. Proxies must be filed 48 hours before a meeting.

Changing the deedMaster Deed: proposed by Board majority or owners of 25% interest, adopted by 67% of the undivided interest at a special meeting (Art. XXIX); unanimous owner and mortgagee consent to change percentage interests or assessment basis; Grantor consent for Grantor-reserved rights; Grantor plus all commercial-unit-owner consent for commercial-unit rights; Grantor consent plus unanimous owner vote to amend the Article XIV commercial restriction. By-Laws: 67% of total votes (By-Laws Art. VI Sec. 6). Termination of the regime: unanimous owners and lienholders (Art. XXVIII).

Disputes or lawsuitsNo litigation or dispute documents on file. The Master Deed imposes a jury-trial waiver (Art. XXXVIII) and mandatory binding arbitration before a three-arbitrator AAA panel in Horry County for claims among the Grantor, Association and owners, excluding assessment collection suits (Art. XXXIX). The 2019 Fourth Amendment records that the Association took a bank loan for a sliding-door replacement project (debt service $332,000 in 2026).

What the documents say (10)

“The power of the GRANTOR,its successors or assigns, to designate Directors as above referred to shall terminate no later than the 1st day of January, 2020.”Master Deed, Article XXXII, page 31

“Class I members shall be entitled to one vote for each UNIT in which they hold the interest required for membership. 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”Master Deed, Exhibit E By-Laws, By-Laws Article II, Section 2, page 55

“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 ofthe Condominium in order for such amendment or amendments to become effective.”Master Deed, Article XXIX, page 27

“Furthermore, a perpetual, appurtenant, exclusive easement for advertising, signage, food and beverage service and any other commercial activity is hereby reserved over the corridors, passageways, elevators, building exterior, parking garage and other COMMON ELEMENTS, which easement is a LIMITED COMMON ELEMENT for the exclusive use and benefit of UNIT C-l and the o'wner thereof.”Master Deed, Exhibit B, Exhibit B, page 41

“Provided, however, any such rules or regulations that purport to diminish, abrogate or in any way affect the COMMERCIAL UNITS, including the LIMITED COMMON ELEMENTS appurtenant thereto or other rights reserved herein in favor of the GRANTOR, its successors and assigns relative to the UNITS, COMMERCIAL UNITS, COMMON ELEMENTS, LIMITED COMMON ELEMENTS or any other portion of the Condominium shall not be binding upon the GRANTOR, its successors and assigns, unless and until the GRANTOR consents in writing to the same.”Master Deed, Article XV, page 13

“Notwithstanding the foregoing, the COMMERCIAL UNIT OWNER(S) shall have the right, without the consent or permission of the Board of Directors of the ASSOCIATION, to make such changes and alterations to structural or non-structural components of the COMMERCIAL UNIT(S) as it or they may unilaterally desire”Master Deed, Article XIX, page 15

“(a.) At the first annual meeting of the ASSOCIATION, five (5) Directors shall be elected.”Master Deed, Exhibit E By-Laws, By-Laws Article III, Section 5, page 59

“EACH AND EVERY CLAIM AND CAUSE OF ACTION ARISING OUT OF OR RELATED IN ANY WAY TO THE DESIGN, CONSTRUCTION, SALE MAINTENANCE, HABITABILITY OF, OR CONDITION OF ANY UNIT OR ANY COMMON AREA THAT IS ASSERTED BY CLAIMANT SHALL BE RESOLVED BY FINAL AND BINDING ARBITRATION BEFORE A PANEL OF THREE (3) ARBITRA TORS”Master Deed, Article XXXIX.B.2, page 36

“The GRANTOR, or an affiliate of the GRANTOR, may be employed as managing agent or manager.”Master Deed, Exhibit E By-Laws, By-Laws Article III, Section 18(a), page 62

“At any election of Directors to the Board of Directors, each Voting Member may cast, in respect to each vacancy, as many votes as he or she is entitled to exercise under the Articles ofIncorporation. The candidates receiving the largest number of votes shall be elected.”Master Deed, Exhibit E By-Laws, By-Laws Article III, Section 7, page 59

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

Owners may rent their units with no minimum stay, no owner-use cap and no requirement to join any on-site program; the deed expressly preserves the right to rent or lease (Master Deed, Art. XIV p. 12)
The Association is barred from running a rental program itself and the deed contemplates owner-authorized rental managers, so off-site or self-management is compatible with the documents (Master Deed, By-Laws Art. I Sec. 4 p. 54; Art. XVII p. 14)
Off-program guests share the owners' easement to the pool area, lazy river, hot tub, solarium and pool decks, and the common elements generally, for 'immediate families, guests, licensees and invitees' (Master Deed, Art. VII p. 8; Exhibit B p. 42)
Dues include in-unit electricity for lights, heat and air conditioning, water/sewer, cable TV, phone/internet, monthly pest control and a bed bug program, so there are few separate utility bills for a rental owner (Master Deed Art. XXXVI.G.2 p. 32; 2026 Budget pp. 1-2)
2026 budget funds a $500,000 general reserve (15.0% of revenue) plus $300,000 of capital projects (2026 Budget, p. 2)
Developer Board control and veto expired no later than January 1, 2020; the Board is five owner-elected directors with two-year terms and open meetings (Master Deed Art. XXXII p. 31; By-Laws Art. III pp. 57-60)
Owners may hire independent contractors for daily or weekly housekeeping (Master Deed, Art. XIV p. 13)
No registration, disclaimer, local-contact or response-time requirements appear in the deed (Master Deed, throughout)
The By-Laws require quarterly financial reports with a balance sheet and delinquency report and an audited annual report within 120 days of year-end, and the Board must make the governing documents and financial statements available to prospective purchasers, so the missing reserve and loan figures should be obtainable on request (By-Laws Art. III Sec. 17(n) p. 62; Sec. 19 p. 63)

Watch-outs

Deed-level monopoly: only the commercial units may run rental management, reservations, key pick-up/drop-off, front desk, concierge or any commercial activity, and owners 'are restricted against using any part of the COMMON ELEMENTS to engage in the business of renting' - off-program guests get no front-desk check-in and the owner must handle keys and arrivals (Master Deed, Art. XIV pp. 12-13)
The hotel unit C-3 alone holds 42.8282% of the vote and of assessments and the three commercial units 48.72%, so the commercial owner can block any 67% amendment and dominates quorum and elections (Master Deed Exhibit C p. 47; By-Laws Art. II Sec. 2 p. 55)
The commercial-activity restriction can only be amended with Grantor consent plus a unanimous owner vote, and commercial-unit rights only with Grantor and all commercial owners' consent, so the structure is effectively permanent (Master Deed, Art. XIV p. 13; Art. XXIX p. 27)
Lobby, pool deck, lazy river, hot tub, solarium, trash chutes/rooms, cart areas, vending and maid closets are limited common elements of commercial Unit C-1; owners' guests have only an ingress/egress easement in the lobby and may be shut out of the pool amenities for up to 12 consecutive hours for 'resort functions' (Master Deed Art. IV p. 7; Exhibit B pp. 41-42)
The exercise room, game room, gift shop and bar are part of commercial Unit C-1 and the restaurant/lounge is Unit C-2; the deed grants owners no easement to them, and the HOA pays a $9,000 'Exercise Room Lease' (Master Deed Exhibit B p. 41; 2026 Budget p. 1)
2026 budget runs a $317,702 deficit after $332,000 of debt service on the sliding-door loan; how the loan is being repaid (reserve draw, special assessment, or otherwise) is not shown (2026 Budget p. 2; Fourth Amendment recitals p. 1)
Insurance is the largest expense at $625,000 (18.8% of revenue) with no deductible, wind or flood detail on file; owners pay any deductible shortfall on in-unit repairs (2026 Budget p. 1; Master Deed Art. XXI as amended)
Dues run roughly $716-$1,304 per month per residential unit by 2004 percentage interest (no per-unit schedule on file), and the deed lets the Board borrow for repairs or budget shortfalls without an owner vote (2026 Budget p. 1; Master Deed Exhibit C pp. 43-47; By-Laws Art. III Sec. 20 p. 63)
The Grantor's successors retain the right to impose rules on how owners and rental managers advertise, including use of the 'Patricia Grand' name and photographs, and no current rules are on file (Master Deed, Art. VII p. 9)
Rules affecting the commercial units or Grantor-reserved rights do not bind the Grantor's successors without written consent, and commercial unit owners can alter their units without Board approval and sue owners to enforce the commercial restriction with fee-shifting (Master Deed Art. XV p. 13; Art. XIX p. 15; Art. XXX.F pp. 29-30)
Mandatory binding arbitration before a three-arbitrator panel and a jury-trial waiver for disputes with the Association or Grantor (Master Deed, Arts. XXXVIII-XXXIX pp. 35-37)
Fines for guest violations fall on the owner if the guest does not pay, with no fine schedule on file; late fee $25 plus interest, acceleration and foreclosure after 20 days (By-Laws Art. III Sec. 22 p. 64; Master Deed Art. XXVII.G p. 24)
No pets of any kind, yet the budget carries a $12,000 pet clean-up line, suggesting enforcement issues or service-animal costs (Master Deed Art. XV p. 13; 2026 Budget p. 1)
The First, Second and Third Amendments (2010-2011), any amended by-laws, current rules and regulations, and the parking easement agreement are not in this set, so the current unit roster, percentage schedule and guest rules cannot be confirmed (Fourth Amendment recitals p. 1)
The building dates from 1988/1990 (a converted hotel) and units were accepted 'AS IS' with the Grantor disclaiming mildew, ocean-front climate and indoor/outdoor pool-enclosure moisture problems; the only reserve history in the deed is a $160,000 seed contribution in 2004 and a one-time C-1 elevator-replacement obligation capped at $200,000, so a current reserve study and balance are essential (Master Deed Art. XXXVII p. 34)
Parking is on a separate easement parcel with its own assessing corporation, and the Grantor's successors reserved any parking spaces above the legal minimum, so guest parking depends on an agreement not on file and the garage line already costs $160,396 a year (Master Deed Exhibit A p. 39; Art. XXXVI.G.4 p. 33; 2026 Budget p. 1)

04 The money

What you pay, and where it goes.

An HOA fee is a share of a budget. The budget tells you whether the fee is buying upkeep or catching up on it.

Regular assessments, 2026

Unit type	Per month	Per year
0.2605% interest (statutory value $380; smallest residential type, e.g. the x28 stack) - computed as 2026 regular assessments x 2004 Exhibit C percentage	$716	$8,592
0.2962% interest (statutory value $432; x26 stack) - computed as 2026 regular assessments x 2004 Exhibit C percentage	$814	$9,770
0.3565% interest (statutory value $520; x08 stack) - computed as 2026 regular assessments x 2004 Exhibit C percentage	$980	$11,759
0.3702% interest (statutory value $540; x04 stack) - computed as 2026 regular assessments x 2004 Exhibit C percentage	$1,018	$12,211
0.4251% interest (statutory value $620; x38 stack) - computed as 2026 regular assessments x 2004 Exhibit C percentage	$1,168	$14,021
0.4443% interest (statutory value $648; x06 stack) - computed as 2026 regular assessments x 2004 Exhibit C percentage	$1,221	$14,655
0.4470% interest (statutory value $652; x10 stack) - computed as 2026 regular assessments x 2004 Exhibit C percentage	$1,229	$14,744
0.4744% interest (statutory value $692; largest residential type, x02 stack) - computed as 2026 regular assessments x 2004 Exhibit C percentage	$1,304	$15,648
Commercial Unit C-3 (hotel rooms), 42.8282% interest	$117,720	$1,412,640

What the dues cover

Electricity for lighting, heating and air conditioning of all units is declared a Common Expense (Master Deed Art. XXXVI.G.2; budget 4401 Electricity $253,000)Water & sewer ($125,000)Cable TV ($98,784) and phone/internet via Ipacket ($110,280) and HTC ($21,216)Fuel ($100,000)Pest control ($11,088) with monthly in-unit spraying, and a bed bug program ($22,000)Building casualty/liability insurance ($625,000)Hallway and corridor care ($245,000), pool maintenance, chemicals, attendant and supplies (~$187,000), elevators, security ($86,000), parking garage expenses and attendant ($160,396), trash removal carts ($8,000)General reserve ($500,000) and capital projects ($300,000) contributions

Where the budget goes

4307 Insurance$625,000 · 19%

4502 General Reserve$500,000 · 15%

4570 Debt Service for Sliding Doors (Other Expense, below the line)$332,000 · 10%

4503 Capital Projects$300,000 · 9%

4401 Electricity$253,000 · 8%

4102 Hallways and Corridor Care$245,000 · 7%

4204 General Maintenance & Materials$180,000 · 5%

4203 Parking Garage Expenses$135,396 · 4%

The figures, in the documents' words (13)

“3001 - Regular Assessments 3,298,387.08 3002 - Interest Income 25,000.00 3003 - Late Fees 400.00 3006 - Misc Income 500.00 Total 3000 - Revenues 3,324,287.08”2026 Profit & Loss Budget Overview, page 1

“4307 - Insurance 625,000.00”2026 Profit & Loss Budget Overview, page 1

“4502 : General Reserve 500,000.00 4503 - Capital Projects 300,000.00”2026 Profit & Loss Budget Overview, page 2

“Total Expense 3,309,989.00 Net Ordinary Income 14,298.08 Other Income/Expense Other Expense 4570 - Debt Service for Sliding Doors 332,000.00 Total Other Expense 332,000.00 Net Other Income (332,000.00) Net Income (317,701.92)”2026 Profit & Loss Budget Overview, page 2

“the Association's Board of Directors approved a sliding door replacement project, which is funded in part by a loan from Synovus Bank ("Lender")”Fourth Amendment to Master Deed, Recitals, page 1

“Expenses declared common expenses by provisions of this Master Deed, including electricity charges for lighting, heating and air conditioning all units;”Master Deed, Article XXXVI.G.2, page 32

“Any and all assessments made by the Patricia Parking Corporation with respect to the Property in accordance with the Easement and Agreement referenced in Exhibit A, the rights to which relating to the Property are submitted hereby.”Master Deed, Article XXXVI.G.4, page 33

“the assessments made by the ASSOCIATION shall be in such proportion so 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, Article XXVII.A, page 22

“C-l $3,514 2.4091 % C-2 $5,082 3.4841 % C-3 $62,470 42.8282 %”Master Deed, Exhibit C, Exhibit C, page 47

“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 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, and the total amount of such borrowing exceeds or would exceed ten (10%) percent of the budgeted gross expenses”Master Deed, Exhibit E By-Laws, By-Laws Article III, Section 20, page 63

“The building was constructed in two phases in 1988 and 1990. Grantor hereby discloses to each OWNER that the building was inspected by engineers who issued a property condition assessment report on November 13, 1998”Master Deed, Article XXXVII, page 34

“Grantor has made an initial contribution in the amount of $160,000.00 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. In addition, the OWNER of COMMERCIAL UNIT C-1 shall be responsible for the following items: 1. Elevators: A one time replacement of the elevators within the Property, up to a maximum total cost of $200,000.00.”Master Deed, Article XXXVII, page 34

“The annual report referred to above shall be prepared on an audited basis, by an independent certified public accountant for each fiscal year.”Master Deed, Exhibit E By-Laws, By-Laws Article III, Section 19(g), page 63

Patricia Grand.

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.

Patricia Grand.

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.