2. Owner Rights, Responsibilities

2.1. Occupancy and Ownership Rights and Obligations. Owners and Occupants have the exclusive use and enjoyment of their Private Units and Sub-Condominium Units, and Owners may freely sell, transfer, assign, mortgage or otherwise encumber their interest in a Private Unit or Sub-Condominium Unit and their Undivided Interest Percentage, subject only to the limitations and obligations contained in any easements or servitudes affecting their Private Unit or Sub-Condominium Unit, their respective Land Use Classifications, the Master Rules, the Master Condominium Declarations, the Administrators Rules, the Design Guidelines, the Sub- Condominium Rules, Declaration, and Sub-Condominium Administrators Rules of the corresponding Sub-Condominium, all other applicable rules, regulations, standards, resolutions or guidelines issued by the Master Condominium Assembly or Sub-Condominium Assembly, the purchase and sale agreement for the acquisition of their Private Unit or Sub-Condominium Unit, and the Law. Each Owner must pay all Assessments, taxes and duties legally assessed against their Private Unit or Sub-Condominium Unit. An Owner has the right to notice, as required by these Master Rules, and the right to attend and speak at an assembly, in the event the approval of foreclosure proceedings against their Private Unit or Sub-Condominium Unit is an agenda item.

2.2. Owner Responsibility for Others. Owners may lease or otherwise grant other Persons occupancy rights to the Owner's Private Unit or Sub-Condominium Unit, and Owners may authorize other Persons to come onto and visit or perform work on the Private Unit or Sub- Condominium Unit. Owners are responsible for ensuring compliance with all of the provisions of the Master Rules, the Master Condominium Declarations, the Administrators Rules, the Design Guidelines, and all other applicable rules, regulations, standards, resolutions, or guidelines issued by the Master Condominium Assembly, and Owners are solely responsible for all violations, fines, fees or other sanctions of any kind imposed by the Master Assembly, Administrators, or the Design Review Committee due to the actions of such Persons, subject to any rights of subrogation the Owner may have against such Persons. Owners are responsible for informing such Persons of all applicable provisions of the Master Rules, the Master Condominium Declarations, the Administrators Rules, the Design Guidelines, and all other applicable rules, regulations, standards, resolutions, or guidelines issued by the Master Condominium Assembly.

2.3. Rights of Entry. Only the Owner of a Private Unit or Sub-Condominium Unit, and such additional Persons as may be authorized by such Owner or by the Law, has the right of access and entry to the interior of such occupied Private or Sub-Condominium Units; except that contractors, representatives, and agents of Administrators, including but not limited to patrolmen or security personnel, have the right but not the obligation to enter upon all Private Units or Sub- Condominium Units, including any interior portions of any structures thereon, when responding to alarms or when otherwise reasonably deemed necessary for the protection of Persons or property, and neither Administrators nor any representatives or agents thereof have any liability to any Person when acting in good faith pursuant to this provision. By owning property within the Loreto Bay Master Condominium, Owners agree that Administrators and their contractors, representatives, or agents may enter the Private Unit or Sub-Condominium Unit for the purpose of providing services; however, Administrators, their contractors, representatives, or agents may not enter upon the interior portions of any occupied structure located on a Private Unit or Sub- Condominium Unit to provide services without the consent of the Owner or Occupant or unless such entry is authorized elsewhere in these Master Rules.

2.4. Utility Easements. Each Private Unit or Sub-Condominium Unit is subject to those easements that may be created upon, across, over and under the common areas integrating the Master Condominium for the provision of utility services and Owners must permit installing, constructing, replacing, repairing, maintaining, and operating all lines, systems, channels, conduits, structures and equipment required for the Utility Infrastructure. Each Owner must comply with and fulfill any and all obligations created upon their Private Unit or Sub- Condominium Unit as set forth in the corresponding easement agreements and must refrain from any act or activity that could disturb, restrict, limit, disrupt or otherwise diminish in any way any of the Utility Easements. Each Owner is responsible for paying the cost for all repair work and materials required in case the Utility Infrastructure or any part thereof is damaged by the Owner, or any of the Owner’s tenants, Guests, employees, agents, or licensees.

2.5. Undivided Interest. Each Private Unit and Sub-Condominium Unit has a corresponding undivided interest in the Master Common Areas in the percentage established in the Master Condominium Declaration and the corresponding Sub-Condominium Declaration, as amended from time to time. An Owner’s Undivided Interest Percentage must not be separated from the Owner’s interest in their respective Private Unit or Sub-Condominium Unit.

2.6. Mortgages and Encumbrances. Owners have the right, subject to the provisions of the Master Rules, the Master Condominium Declarations, the Administrators Rules, the Design Guidelines, all other applicable rules, regulations, standards, resolutions, or guidelines issued by the Master Condominium Assembly, and the Law, to establish mortgages or otherwise encumber their Private Unit or Sub-Condominium Unit. No Owner has the right or authority to make or create or cause to be made or created any mortgage or other lien or security interest on or affecting the real property integrating the Master Condominium, or any part thereof, except as to their Private Unit or Sub-Condominium Unit and their Undivided Interest Percentage.

2.7. Owner Responsibility for Insurance. Except as may be otherwise provided in the Master Rules, the Master Condominium Declarations, the Administrators Rules, the Design Guidelines, all other applicable rules, regulations, standards, resolutions, or guidelines issued by the Master Condominium Assembly, and the Law, it is each Owner's responsibility to provide any desired insurance for the Owner's Private Unit or Sub-Condominium Unit, including any additions, improvements, furnishings, personal property, the Owner's personal liability to the extent not covered by public liability insurance obtained by Administrators, and such other insurance as the Owner may desire.

2.8. Transfers. Owners who sell, transfer, or otherwise dispose of their Private Units or Sub- Condominium Units, in any manner whatsoever, excluding involuntary transfers or transfers mortis causa, must comply with the terms of these Master Rules, and:

• Owners must notify Administrators in writing prior to any transfer.

• Owners must specifically and expressly notify the transferee(s) of the terms of this provision prior to any transfer.

•  The obligation to complete Mandatory Improvements runs with the land, and the transferee is responsible for completion of all Mandatory Improvements required by the Master Rules, the Master Condominium Declarations, the Administrators Rules, the Design Guidelines, and all other applicable rules, regulations, standards, resolutions, or guidelines issued by the Master Condominium Assembly, and the Law, if not completed prior to the time of transfer.

• No Owner may transfer their Private Unit or Sub-Condominium Unit unless all Assessments, utility fees, real property taxes, trustee fees, or any other taxes, fees, charges or assessments relating to or affecting the Private Unit or Sub-Condominium Unit are paid prior to or simultaneously with the transfer of the property interest. Evidence of payment thereof must be delivered to the Administrators. In the event that any ownership interest, whether it exists pursuant to title or an interest in a trust, or in any other manner, in any Private Unit or Sub-Condominium Unit is transferred without complying with this provision, any pending Assessment or obligation to the Master Condominium will attach to the Private Unit or Sub-Condominium Unit, and the new Owner will acquire and be obligated to pay such amount.

2.9. Mandatory Improvements. Owners that acquire Private Units or Sub-Condominium Units on which Mandatory Improvements have not yet been completed at the time of transfer must comply with all requirements and timelines established in the Master Rules, the Master Condominium Declarations, the Administrators Rules, the Design Guidelines, and all other applicable rules, regulations, standards, resolutions, or guidelines issued by the Master Condominium Assembly, and the Law. Administrators, for the safety, appearance, or wellbeing of community, and at the expense of the Owner, have the power to access any Private Unit or Sub-Condominium Unit that is built in violation of or not completed according to all rules and regulations of Master Condominium to landscape, manage or demolish such property or improvements, subject to the provisions of these Master Rules.

2.10. Services to Private Units and Sub-Condominium Units; Access. In order to promote uniformity and harmony of appearance, Administrators may contract to provide services not otherwise the responsibility of Administrators to Owners of Private Units or Sub-Condominium Units in exchange for the payment of such fees as Administrators and the contracting Owners may agree upon. In addition, in the event an Owner cannot be contacted or will not agree to the provision of reasonable services to such Private Units or Sub-Condominium Units, and the unit in question is in an unsafe or unsightly condition, Administrators may provide such services to the exterior and to those portions of the property that are Visible from Neighboring Property without the consent of the Owner. By owning property within the Loreto Bay Master Condominium, Owners agree that Administrators and their contractors, representatives, or agents have rights of access and may enter the Private Unit or Sub-Condominium Unit for the purpose of providing such services, except that they may not enter upon the interior portions of occupied structures located on a Private Unit or Sub-Condominium Unit without the consent of an Owner or Occupant or unless such entry is authorized elsewhere in these Master Rules. If an Owner cannot be contacted or will not agree to reasonable fees for such services, Administrators may impose reasonable fees without obtaining the prior consent of the Owner. Such fees will be considered Benefited Assessments and will be levied and collected by Administrators as such.