Common use of Construction Deposit Clause in Contracts

Construction Deposit. Owner agrees to pay a construction deposit to be paid to Middle Island Property Owners Association for the purposes of ensuring compliance with the Covenants, Design Guidelines, Road Cut application, common areas, rights of way, fees, fines, penalties, and administrative expenses. The Association will refund the deposit in full, upon completion of the project, as determined by the ARC if: • The construction project on the property has been completed in accordance with ARC approved plans • No common areas on the property or rights of way have been damaged or disturbed by construction • No covenants or design guidelines have been violated. • No deficits are remaining from the landscaping plan • Road cut process and specifications have been adhered to and passed final inspection Failure to satisfy these conditions may result in the loss of some or all the deposit, regardless of whether the damage or failure is caused by owner, architect, landscape architect or builder, or their agents. Owner understands that the deposit may be applied to reimburse the Association for damages to the common areas and rights of ways and to fines levied by the Association. If the fine(s) exceed the amount of the Deposit, the balance owed may be assessed as a lien against the owner’s property. In addition to fines, if the owner fails to cure any violation of the covenants, design guidelines, or plans approved by the ARC, the Association after providing the owner with notice and a reasonable time to cure the violation shall have the right to enter the property, remove or otherwise cure the violation, and restore the property to substantially the same condition as previously existed. All costs, together with interest at the maximum rate allowed by law, may be deducted from the deposit and the balance owned may be assessed as a lien against the owner’s property.