Construction Indemnity Agreement

Revised March 14, 2025

State of North Carolina
County of Lee

CONSTRUCTION INDEMNITY AGREEMENT

This agreement, made this ___day of _________, 20___,by and between GOLF
NORTH PROPERTY OWNERS ASSOCIATION, INC., a corporation organized and existing under the
laws of the State of North Carolina with its principal place of business in Lee County, N.C.,
(hereinafter referred to as the “Association”),
and _________________________, (hereinafter referred to as the
“Owner” or “Owners”), and ________________________, a construction company
doing business in Carolina Trace, Lee County (hereinafter referred to as “the Contractor”).

WITNESSETH:

WHEREAS, the Owner holds title to Lot Number __, Golf North Subdivision, Carolina
Trace, Lee County, and,
WHEREAS, the Owner, with the submission of the plan set forth in Appendix 1 hereto, request
approval of the Association’s Architectural Committee, hereinafter referred to as “AC”, as designated
in the Associations Reservations and Restrictions, Section 5 Architectural Control, and Section 6
Approval of Builders; to perform construction, alter an existing building or make improvements to
ground, hereinafter called the “project”).
NOW, THEREFORE, in consideration of AC’s approval to proceed, the Owner and/or
Contractor agree as follows:

  1. Receipt of Association’s Review Package. The Owner and/or Contractor acknowledges
    receipt of the Association’s Review Package for Owners/Contractors which includes the
    Association’s Statement of Reservations and Restrictions and AC Construction Guidelines and
    AC Oversight.
  2. Changes of Plans. Changes in plans, which in any way alters the exterior appearance of this
    project must be approved by AC prior to the Owner and/or the Contractor’s initiation of such
    changes.
  3. Security Deposit. The Owner and/or the Contractor will provide Six Thousand ($6000) to the
    Association as a security deposit. This deposit will be held in escrow and returned to the
    Owner and/or Contractor when the AC gives final approval to the completion of the project. No
    on-site construction activity for this project will be approved until the Association has received
    this deposit.
  4. Road Maintenance Fee. The Owner and/or Contractor of each lot upon which a new
    residence is to be constructed, shall pay a road maintenance fee of Eight Thousand ($8000).
    This fee shall be paid to Golf North Property Owners Association at the time the Owner and/or
    Contractor files this indemnity agreement with the Association’s Architectural Committee. No
    on-site construction activity for this project will be approved until the Association has received
    this fee. All such road maintenance fees shall be kept in a separate fund to be used only for

Rev March 14, 2025 Page 1 of 3

Association Road Maintenance. In addition, the Owner and/or Contractor agree to remove
excess dirt or mud and other debris from roads as a result of their activities.

  1. Field Location Requirements. Prior to submittal to AC for approval, the Owner and/or
    Contractor agrees to locate by means of stakes and heavy duty string:
    A. The location of the property lines.
    B. The perimeter/footprint of the structure to be built, including decks, porches, and
    garages.
    C. The location of the driveway and parking areas.
  2. Building Site. During construction, the Owner and/or Contractor agree to:
    A. Keep the building site clean and neat, to provide adequate on-site trash collection, clean
    up trash and debris in and around the building site, and remove or store on site
    Construction materials. Common areas of the Association shall not be used for storage
    of construction equipment or materials unless granted approval by AC.
    B. To limit working hours and deliveries to the following unless exceptions are approved by
    AC.
    I. Monday-Friday from 7:00 AM to 6:00 pm from March through October; and
    ii. Monday-Friday from 7:00 AM to 5:00 pm from November through February.
    iii. Weekend work must be approved by AC.
    C. To prohibit alcohol beverages on the construction site or other Golf North areas.
    D. To observe the 25 mph speed limit on the Association roads.
  3. Common Ground. Most Association properties have easements/common ground/buffer
    areas along the front, sides and back of property. Unless prior written approval from AC is
    granted, the Owner and/or Contractor agree not to cut down a tree or trees on the
    Association’s common ground or otherwise damage such common ground.
  4. Repair of Road Cuts. Whenever the Owner and/or Contractor finds it necessary to cut/
    alter the existing road, a patch of asphalt or other suitable material shall be provided on the
    day of construction. Upon completion of construction, the Owner and/or Contractor, within
    two (2) weeks, shall restore damaged road.
  5. Subcontractors. The Owner and/or Contractor agree that they are responsible for actions of
    subcontractor working on this construction sites, and shall notify subcontractors
    construction site requirements/limitations.
  6. Mailbox. It is the Owner’s responsibility to erect a mailbox approved by the Association that
    is in harmony with the Association.
  7. Completion Time Requirements. The Owner and/or Contractor understand and agree that
    all phases of exterior construction, including landscaping, shall be completed within six (6)
    months from the time of lot clearing; and all construction equipment and/or building supplies
    will be removed from the exterior of the premises within two (2) weeks from completion of

Page 2 of 4

exterior construction. If circumstances render the restriction unattainable, the Owner and/or
Contractor shall, in writing, inform the AC of the conditions or circumstances and request a
time extension.
Penalty for Owner or Contractor noncompliance of exterior is agreed to be:
$25 /a day for the first thirty (30) days, and
$50 /a day for the next thirty (30) days, and
$100 /a day thereafter.

  1. Failure to Perform. If the Owner and/or Contractor, or any subcontractor fails to perform
    work as required by Articles 5, 6, 7, and 10 of this agreement, the Owner and/or Contractor
    agree that the Association may perform or have performed, such work and charge the cost
    of such work to the Owner and/or Contractor, jointly or severely. The Owner and/or
    Contractor, jointly or severely, agree to reimburse the Association for costs expended by the
    Association under this agreement, together with interest at a rate of 1.5% a month after the
    date of notification of the funds due the Association together with reasonable Attorney’s
    fees if the Association incurred in collection.
  2. Upon Completion of Exterior Construction. The Owner and/or Contractor shall notify AC
    for a final review of their compliance with this Construction Indemnity Agreement (referred
    to as “CIA”). Upon such signed approval, all, part, or none of the security deposit will be
    returned to the Owner and/or Contractor based on the extent of compliance, i.e., in full
    or part. A copy of this final approval will be given to the Owner and/or Contractor and
    placed in AC files. Until final approval is granted by the Association, Contractor will be denied
    approval to proceed on a new project in Golf North without a written waiver from the AC, but
    in the event of multiple concurrently approved construction sites, the Contractor may
    continue with other approved in-progress construction sites.
  3. Association Approval to Proceed. Through the signature of the Chairman of the AC, the
    Association approved the initiation of construction activity for this project. Construction start
    date to be _______________ or date this document executed and approved
    by Golf North Property Owners Association’s AC.
  4. The Owner and/or Contractor. Owner and/or Contractor have read the terms and
    requirements contained herein and agree to accept and comply with this Construction
    Indemnity Agreement as evidenced by signing below on this the _ day of ___, 20___.

____________________ GOLF NORTH PROPERTY OWNERS’ ASSOCIATION


OWNER AC CHAIR
In accordance with paragraph 13 of this agreement, the AC has made their final exterior
Inspection one this the day of ________________, 20____.

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The Owner and/or Contractor has fully complied with said agreement (CIA) and is entitled to
the full refund of ___ security deposit.

____________________ GOLF NORTH PROPERTY OWNERS’ ASSOCIATION


OWNER AC CHAIR

The Owner and/or Contractor has fully complied with said agreement (CIA) and will be refunded
___ of the security deposit.

____________________ GOLF NORTH PROPERTY OWNERS’ ASSOCIATION