Caribbean Resort 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.

Short-term rental is expressly allowed with no minimum stay and owners may self-manage or use an off-site manager (the deed even recognises owner-appointed rental managers), which rules out a 1, but the Rules impose an occupancy registry, a 30-minute contact, a mandatory all-caps disclaimer on every listing and a ban on mentioning or showing the resort's commercial amenities, and the deed bars using any common element in the business of renting or for key pick-up/drop-off, which matches the guide's 'allowed with registration/advertising rules' tier.

Short-term rentalsAllowed

Must use on-site programNo

Owner may rent it personallyYes

Off-site manager allowedYes

Owner-use limitsNone stated. Units are restricted to residential use by the owner, immediate family, guests, licensees and invitees; timeshare/interval ownership requires written approval of the Grantor and the CU-1 owner (Master Deed Art. XIV, p.15).

RegistrationAn occupancy registry kept by the Association (Ally Management, Inc.) with a record of all persons occupying each unit and contact information, plus a single point of contact for the renting owner who can respond on behalf of the unit within 30 minutes; the Association must hold a working key or access code to every unit; every guest must receive a copy of the Rules before arriving (Rules pp.2, 4). The Master Deed itself recognises owner-authorised 'rental managers and their agents' as persons entitled to emergency entry (Art. XVII, p.18) and binds every tenant or occupant to the deed by the mere act of renting or occupying a unit (Art. XXXI, p.37).

Advertising rulesOwners renting personally or through an off-site manager must not reference the availability of the resort's commercial services, operations or amenities in text or photographs (Tiki Bar, meeting room, spa, guest laundry, game rooms, front desk, housekeeping/maintenance); every electronic, digital, print or other listing must carry the mandatory disclaimer; no 'For Rent' or 'For Sale' signs without Association approval (Rules pp.3-4; Master Deed Art. XIX, p.19). CU-1 holds an exclusive signage/advertising easement over corridors, elevators and the building exterior (Exhibit B, p.54).

Disclaimer in your listingRequired

Vote to change rental rulesRules and Regulations may be revised by the Board alone (Rules p.4; By-Laws Art. III Sec. 18(f)). Master Deed amendments generally need 67% of members owning a unit (Art. XXIX, p.34), but the Article XIV restriction reserving commercial activities (front desk, rental management, housekeeping closets, service elevator) to the commercial unit cannot be amended without the Grantor's consent AND a unanimous vote of all unit owners (Art. XIV, p.16), and any change to commercial-unit rights needs the Grantor plus all commercial unit owners (Art. XXIX, p.34).

What the documents say (11)

“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, p.15

“Only the Owner(s) of the COMMERCIAL UNIT(S) shall be entitled to conduct commercial activities within the Regime.”Master Deed, Article XIV, p.16

“UNIT OWNERS may rent their Units, but are restricted against using any part of the COMMON ELEMENTS to engage in the business of renting.”Master Deed, Article XIV, p.16

“Daily or weekly maid service is permitted by independent contractors acting for one or more UNIT OWNERS, but only the owner of the COMMERCIAL UNIT CU-1 shall be entitled to use the on premises maids closets, the linen chute, and the service elevator.”Master Deed, Article XIV, p.16

“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 OWNERS.”Master Deed, Article XIV, p.16

“No UNIT or any portion thereof may be submitted to a plan of Interval Ownership or any form of timesharing without the prior written approval of the GRANTOR and the Owner of the COMMERCIAL UNITS CU-1.”Master Deed, Article XIV, p.15

“As a result, and in order to avoid any confrontations or other misunderstandings on-property, all Owners who elect to rent their units either personally, or through an off-site rental management company, shall refrain from referencing the availability of such commercial service, operations and amenities (whether in text or photographs).”Rules and Regulations July 2021, COMMERCIAL AREAS, p.3

“In addition, any electronic, digital, print or other media listings, advertising or marketing materials for such units shall include the following disclaimer: "RENTAL OF THIS UNIT DOES NOT INCLUDE ANY FORM OF FRONT-DESK SERVICE OR ACCESS TO, OR USE OF, CERTAIN COMMERCIAL OPERATIONS LOCATED UPON THE PROPERTY".”Rules and Regulations July 2021, COMMERCIAL AREAS, pp.3-4

“SIGNS: No signs including "FOR SALE", "FOR RENT", etc. shall be displayed to the public on any units or any portion of the Association property, unless prior Association approval is obtained.”Rules and Regulations July 2021, SIGNS, p.3

“It is also each owner's responsibility to ensure that his / her rental agent and guests understand and observe all rules and regulations.”Rules and Regulations July 2021, GENERAL, p.2

“Furthermore, a perpetual, appurtenant, exclusive easement for maintaining signage and advertising is hereby reserved over the corridors, passageways, elevators, building exterior, and other COMMON ELEMENTS, which easement is a LIMITED COMMON ELEMENT for the exclusive use and benefit of COMMERCIAL UNIT CU-1 and the OWNER thereof.”Master Deed, Exhibit B, p.54

Will your guests be treated like guests?

Caution

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 get the pools, lazy river, water park and parking through owner-distributed wristbands and passes (the guide's 3 tier), but the Tiki Bar, spa, game rooms, guest laundry, meeting room, front desk and housekeeping are reserved to program guests and the disclaimer is mandatory (the guide's 1 tier), guests must haul trash to a compactor across the street and be sent the Rules before arrival, so it lands between those tiers.

Amenities for your guestsMost, not all

Off limits to your guestsTiki Bar, Meeting Room on the 2nd floor, Spa on the 3rd floor, Guest Laundry on the 5th floor, Game Rooms on the 5th floor, Front Desk Services, Housekeeping & Maintenance Services, Trash chutes (off-program units must use the compactor at the parking garage), On-premises maids closets, linen chute and service elevator (reserved to CU-1 by the Master Deed), Fitness center and laundry room: the Bulk Up-Fit packet lists HOA-funded 'Laundry Room Renovations' and 'Fitness Center Renovations', but the Rules reserve the 5th-floor Guest Laundry to on-site program guests and do not mention a fitness center, so off-program access to either is unstated (packet p.4; Rules p.4)

Wristbands & parking passesThe Association mails off-program units 'several wristbands' near the beginning of each year and parking passes for the owner to distribute to guests; extra wristbands are requested from the Association Office Monday-Friday 9AM-5PM; no cost or quantity limit is stated. Pool bands must be worn on the pool deck. Vehicles must fit one marked space, may stay only while guests occupy the unit, and no washing or repairs on site; golf carts, trailers, boats, jet skis and RVs are towed (Rules pp.2-3). Parking itself is on separate property under a relocatable Parking Easement (Master Deed Art. VI, p.10); the budget funds a seasonal parking attendant and parking garage expense.

Check-inowner handles (no front-desk service for off-program units; no lockboxes may be placed in hallways or stairwells; entry door and lock modifications require Board approval)

TrashAll trash must be secured in heavy-duty plastic bags and carried to the compactor located across the street on the north side of the parking garage; the trash chutes are reserved to the Commercial Unit Owner, so off-program units cannot use them; no bags outside unit doors; discarded furniture, appliances and boxes must go to an off-premises dump at the owner's expense (Rules p.3).

ElevatorsPassenger elevators, stairs and hallways are common elements open to all owners and guests (Master Deed Art. VII, p.12; Exhibit B, p.53); the service elevator, maids closets and linen chute are reserved to CU-1 (Art. XIV, p.16). Move-ins/outs must occur during business hours coordinated with building maintenance (Rules p.3).

Housekeeping & linenOff-program owners may hire independent contractors for daily or weekly maid service but those contractors cannot use the on-premises maids closets, linen chute or service elevator (Master Deed Art. XIV, p.16); on-site Housekeeping & Maintenance Services are commercial operations limited to guests of the on-site rental company (Rules p.4). Contractors must sign in at the front desk (Rules p.4).

What the documents say (11)

“COMMERCIAL AREAS: Access to portions of the property's commercial operations and amenities are limited to only those guests renting through the on-site commercial management company.”Rules and Regulations July 2021, COMMERCIAL AREAS, p.3

“The Commercial areas include; The Tiki Bar, the Meeting Room on the 2nd Floor, the Spa on the 3rd Floor, Guest Laundry and the Game Rooms on the 5th floor as well as Front Desk Services and Housekeeping & Maintenance Services.”Rules and Regulations July 2021, COMMERCIAL AREAS, p.4

“Any and all guests of such units shall receive a copy of these rules and regulations prior to arriving at the property.”Rules and Regulations July 2021, COMMERCIAL AREAS, p.4

“WRISTBANDS: Units not participating on the onsite rental program, will be sent several wristbands near the beginning of each year. Additional wristbands should be requested from the Association Office, Monday thru Friday, 9AM - 5PM.”Rules and Regulations July 2021, WRISTBANDS, p.2

“Units not participating with the onsite rental company will be sent parking passes to distribute to their guests.”Rules and Regulations July 2021, PARKING, p.3

“Per the Master Deed; the trash chutes are for the exclusive use of the Commercial Unit Owner; therefore units not participating with the onsite rental company, must discard all trash in the compactor located at the parking garage.”Rules and Regulations July 2021, TRASH, p.3

“Guests must wear appropriate pool bands while on pool deck.”Rules and Regulations July 2021, SWIMMING POOLS, p.3

“Except as may be specifically set forth elsewhere in this Master Deed with regard to LIMITED COMMON ELEMENTS, and except as set forth in Articles VI, VIII, and XIV limiting the conduct of certain commercial activities to the OWNER or OWNERS of COMMERCIAL UNITS, 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 purposes, and for the furnishing of services and facilities for which the same are reasonably intended, for the enjoyment of said OWNERS of UNITS.”Master Deed, Article VII, p.12

“As an appurtenance to the COMMERCIAL UNIT CU-1, there is reserved to the COMMERCIAL UNIT CU-1 the exclusive right of access over and across all pool decks and pool areas, now existing or hereinafter constructed, for the purpose of conducting the sale of food, beverage, and resort retail items such as suntan lotions, swim apparel, and the like.”Master Deed, Exhibit B, p.54

“Without limiting the commercial activities reserved in favor of the COMMERCIAL UNIT(S) as set forth in this Master Deed, the COMMERCIAL UNIT(S) may be used for all legal commercial or business purposes including, but not limited to, purposes of general rental management service for the RESIDENTIAL UNITS and other off site rental units and related accommodation services, such as key pick up and drop off, front desk, concierge, cable, movie, internet, wireless broadband, and telephone service to RESIDENTIAL UNITS and other off site rental units, shops, stores, offices, sales, vending, gaming machines, if permitted by law, cell towers, guest laundries, restaurant, lounge, game room, real estate sales, health spa, night clubs or any combination of such uses.”Master Deed, Article XXXVI.B, p.39

“Pursuant to the Reciprocal Easement, all of the pool decks, swimming pools, and spas and other pool and ground level sun deck amenities of the Regime will be subject to use by other accommodation properties within Block Two (2) and Block Four (4) of the Kings Highway Section of Myrtle Beach in return for the owners and guests within the Regime being able to use the pool decks, swimming pools, and spas and other pool and ground level sun deck amenities located on those reciprocal properties.”Master Deed, Article VI, pp.10-11

How much work lands on you?

Red flag

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.

Every element of the guide's 1 tier is present: a 30-minute-response point of contact and full occupancy registry, owner- or guest-hauled trash to a compactor across the street, no hallway lockboxes with an Association-held key and no key exchange on common elements, contractors restricted to 9-5 with county and city licences, insurance certificates and front-desk sign-in and barred from the service elevator, and fines from $200 plus $50/day (smoking $250) with eviction of all guests for a balcony violation and owner liability for guest-caused damage.

Local contactThe Association's occupancy registry must include a singular point of contact for, and on behalf of, the renting owner who can respond on behalf of the unit within 30 minutes to any rules violation or emergency (Rules p.4).

Response time30 minutes

Locks & keysThe Association must have a working key or access code to every unit (Rules p.2); the Master Deed lets the Association require a key to be deposited 'at the front desk of the resort' (Art. XVII, p.18) and charges the owner for making a key if none is deposited (Art. XXI, p.20). Entry door and lock modifications require Board approval and no lockboxes may be placed in hallways or stairwells (Rules p.2). Note that 'key pick up and drop off' is listed among the accommodation services the deed reserves to the commercial unit (Art. XIV, p.16), so an owner cannot run a key desk on the common elements; the deed does recognise owner-authorised rental managers and their agents for emergency entry (Art. XVII, p.18).

FinesFirst infraction draws a warning; repeated or continued violations, whether during owner or guest occupancy, draw fines starting at $200 per infraction plus, for wilful violations, $50 per day until remedied; smoking/vaping fines start at $250 per occurrence; throwing anything off a balcony results in all guests being evicted; fines are a lien on the unit and a personal obligation of the owner, with a Board hearing whose decision is final (Rules pp.2-4). The By-Laws assess a fine first against the occupant and then the owner if unpaid, with notice, hearing and appeal rights, and allow suspension of voting and common-area use plus self-help such as towing (By-Laws Art. III Sec. 23, pp.79-80).

Contractors & vendorsContractors must be licensed in Horry County and the City of Myrtle Beach, carry liability and workers' comp with a certificate of insurance naming the Association as additional insured, sign in at the front desk for a name tag before entering, and work only 9:00AM-5:00PM; no tile cutting on balconies or penetration of the building skin; the owner is liable for contractor damage to common elements and for debris removal; move-in/move-out only during business hours coordinated with maintenance (Rules pp.3-4). Independent cleaners cannot use the maids closets, linen chute or service elevator (Master Deed Art. XIV, p.16).

AlsoOwner is responsible for the conduct of guests, rental agent and service personnel and must send guests the Rules before arrival; owners must carry an HO-6 policy with liability and contents coverage if not provided by the HOA (Rules p.4); the Association or its contractor may enter monthly for pest control spraying (Master Deed Art. XVIII, p.18); owners maintain HVAC, appliances, fixtures, window glass and sliding glass doors (Art. XXI, p.20); balcony furniture must be brown and nothing may hang from railings; property is non-smoking including inside units; only owners (not guests) may have pets (Rules pp.2-3). Under the deed the owner is liable for any maintenance, repair or replacement made necessary by the acts of family, guests, employees, agents or lessees to the extent not covered by Association insurance, including any increase in fire insurance rates caused by use or misuse of the unit (Art. XXX.B, p.36), and must pay the portion of any insured loss to owner-maintained items that falls within the Association policy deductible (Art. XXI, p.20).

What the documents say (17)

“Additionally, such registry shall include a singular point of contact for, and on behalf of the renting owner(s) who can respond on behalf of the unit within 30 minutes to any and all violations of the rules and regulations of the Association or in the event of an emergency.”Rules and Regulations July 2021, UNIT OCCUPANCY, p.4

“For safety and security, an occupancy registry shall be required by the Association, such that the Association shall at all times have immediate access to a record of all persons occupying units within the property, along with the relevant contact information in the event of an emergency i.e. fire, flood, terrorism, gas leak, hurricane etc.”Rules and Regulations July 2021, UNIT OCCUPANCY, p.4

“KEYS: Per the Master Deed, the Association must have a working key or access code to every unit in the event of an emergency.”Rules and Regulations July 2021, KEYS, p.2

“Entry door and lock modifications require Board approval. No lockboxes may be placed in the hallways or stairwells.”Rules and Regulations July 2021, BUILDING HALLWAYS, STAIRWELLS & COMMON AREAS, p.2

“TRASH: All trash and unit debris must be secured in a heavy-duty plastic bag and deposited into the compactor located across the street on the north side of the parking garage.”Rules and Regulations July 2021, TRASH, p.3

“Assessed fines shall start at $200.00 per infraction (unless otherwise stated) and may, for wilful violations, include an additional, daily per diem penalty of $50.00 per day until the violation is remedied.”Rules and Regulations July 2021, VIOLATIONS, p.4

“Repeated or continued violations of the rules and regulations (whether occurring during owner or guest occupancy) may result in fines and/or legal action against the owner of the unit.”Rules and Regulations July 2021, VIOLATIONS, p.4

“Throwing any items off the balcony will result in all guests being evicted from the unit.”Rules and Regulations July 2021, BALCONIES, p.2

“SMOKING: Smoking or vaping of any kind is strictly prohibited on the Association property including within units and balconies as this is a Non-Smoking property. Designated smoking areas are available on the south end of the building. Fines start at $250.00 per occurrence.”Rules and Regulations July 2021, SMOKING, p.3

“All contractors must sign in and receive a name tag or identifiable marker from the front desk before entering the property and performing any services.”Rules and Regulations July 2021, UNIT MAINTENANCE / CONTRACTOR WORK, p.4

“Contractors used must be licensed in Horry County as well as the City of Myrtle Beach. Working hours are 9:00AM to 5:00PM.”Rules and Regulations July 2021, UNIT MAINTENANCE / CONTRACTOR WORK, p.4

“INSURANCE: All owners are required to obtain an HO-6 insurance policy that provides liability and content coverage if not provided by the HOA.”Rules and Regulations July 2021, INSURANCE, p.4

“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 and at the front desk of the resort a key to such UNIT.”Master Deed, Article XVII, p.18

“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, p.18

“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, Article III Section 23, p.79

“The OWNER or OWNERS of each UNIT shall be liable for the expense of any maintenance, repair or replacement rendered necessary by his or their act, neglect or carelessness, or by that of any MEMBER of his or their 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 the ASSOCIATION. Such liability shall include any increase in fire insurance rates occasioned by use, misuse, occupancy or abandonment of a UNIT or its appurtenances.”Master Deed, Article XXX.B, p.36

“In case of any emergency originating in or threatening any UNIT, regardless of whether the OWNER is present at the time of such emergency, 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, and such right of entry shall be immediate.”Master Deed, Article XVII, p.18

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.

Two of the guide's 5-tier marks are met (reserves 20.5% of a flat 2026 budget and unusually broad inclusions: in-unit electric, water, cable, internet, pest control and a master HO6) and two of its 1-tier marks are present (insurance jumped 36.8% in 2024 and 12.1% in 2025 and takes 28-37% of recent budgets, and the 2024 Bulk Up-Fit placed $45k-$99k individual assessments and liens on participating units that a buyer may inherit), with dues up 10.5% and 8.1% in the two years before 2026 and the master-policy deductible passed to owners for in-unit damage, so it nets to the guide's 'typical' 3.

2026 budget$5,474,916

Dues change+0.0% on the year

Reserves20% of budget

Special assessments2024 Individual assessment on participating units only: $45,031-$99,286 per unit by type (one-bedroom suites ~$45,000; 2-bed $71,561-$73,245; 3-bed $82,132-$92,534; 4-bed $99,286), priced at 71% participation; payable in full by August 31, 2024 or over 84 months at ~6.95% ($679-$1,496/month); on-site program owners receive an operator credit of ~40% ($18,012-$39,715) on their rental statements, reducing net cost to $27,018-$59,572; total project up to $22,735,260 financed by an association loan collateralized by the individual assessments and liens; the packet names Synovus Bank as the anticipated lender with an expected $35,000 loan fee, the loan was 'anticipated' (not yet closed) when the packet was printed, and the first monthly payment was to fall roughly 30 days after project completion (work scheduled late September 2024 to April 2025) Bulk Up-Fit interior unit renovation (new flooring, kitchens, baths, furniture, lighting, doors) under Articles XX and XXVII of the Master Deed and By-Laws Art. III Sec. 18 and 21 as amended by the Third Amendment to Master Deed filed June 17, 2022; owners who did not opt out by April 30, 2024 were conclusively deemed to participate; balance at resale 'will be negotiated between the buyer and seller'

InsuranceLine 83300 Insurance Expense: $1,085,920 (2023, 23.5% of budget) -> $1,485,021 (2024, +36.8%, 29.2%) -> $1,664,163 (2025, +12.1%, 30.4%) -> $1,520,000 (2026, -8.7%, 27.8%). Line 83310 Master HO6 Expense $232,775 (2023) / $264,000 (2024) / $272,000 (2025) / $265,000 (2026) is funded dollar-for-dollar by line 30300 HO6 Assessment Revenue, i.e. a master HO6 policy billed to residential owners as a separate dues component ($38.11/month on a Phase I one-bedroom, $69.67-$111.90 on Phase II units). Line 83311 Insurance Catchup of $100,000 was budgeted in 2023, 2024 and 2025 and dropped to $0 in 2026, implying a prior-year premium shortfall being recovered. Insurance plus Master HO6 equals 32.6% of the 2026 budget (37.2% in 2025 including the catch-up). Lines 89700 Insurance Claims and 73000 Bulk Upfit appear with no amounts. Owners must separately carry an HO-6 with liability and contents cover if not provided by the HOA (Rules p.4). Deed Art. XXVII.B allows insurance assessments to be levied annually in advance. Deed Art. XXIV names the Board as Insurance Trustee; shortfalls after a loss come from the Reserve Fund for Replacements and then a special assessment on all owners. Outside reimbursements are small: revenue line 32200 Pool Amenity Contribution fell from $30,000 (2023) to $8,200 (2024-2026) and line 31700 Trash Contributions is $59,494, even though the deed contemplates recouping pro-rata parking-garage and water-park costs from other users (Art. XXII, p.21; Art. XXVII, pp.26-27).

Wind deductibleunstated in the budgets; however Master Deed Art. XXI (p.20) makes each owner pay the portion of any insured loss to owner-maintained items (HVAC, appliances, fixtures, window and sliding-door glass, interior finishes) that falls within the Association policy's deductible, so the master-policy deductible is effectively passed to the owner for in-unit damage

FloodMaster Deed Art. XXIV requires the Association's casualty policy to cover windstorm, wind-driven rain, water damage and flood damage 'if reasonably available' (p.22); the budgets do not break out a flood line or deductibles.

DelinquencyAssessments are in default the day after the due date (By-Laws treat a monthly installment as delinquent on the 15th); the Board may accelerate the full annual assessment on 10 days' notice; 18% per annum interest; $25 late fee on any installment more than 30 days late; after 20 days the Association may foreclose its lien, appoint a receiver, collect rental at Grand Strand market rates and terminate utility service to the delinquent unit; the owner is personally liable for interest, costs and attorney's fees; a buyer in a voluntary conveyance is jointly and severally liable with the seller for the seller's unpaid assessments (Master Deed Art. XXVII G-L, pp.28-32). The budgets show $0 Fines/Late Fees revenue and no Allowance for Bad Debt amount; no delinquency report was supplied. A director more than 30 days delinquent may be removed by the Board (By-Laws Art. III Sec. 7, p.73).

What the documents say (27)

“TOTAL INCOME 5,474,917 5,474,916 (1) 0.0%”2026 Approved Operating Budget, p.1, Revenues

“99910 General Reserves 900,000 1,121,446 221,446”2026 Approved Operating Budget, p.1, Other Expenses

“83300 Insurance Expense 1,664,163 1,520,000 (144,163)”2026 Approved Operating Budget, p.1, Other Expenses

“83311 Insurance Catchup 100,000 (100,000)”2026 Approved Operating Budget, p.1, Other Expenses

“195 1 Bedroom 50,000 9,750,000 0.001687527 723.14 38.11 761 (0)”2026 Approved Operating Budget, p.1, Phase I (33.076%) dues schedule

“83300 Insurance Expense 1,085,920 1,485,021 399,104”2024 Approved Operating Budget, p.1, Other Expenses

“TOTAL INCOME 5,083,472 5,474,917”2025 Approved Operating Budget, p.1, Revenues

“When in default, the delinquent assessment or delinquent installment thereof due to the ASSOCIATION shall bear interest at the rate of eighteen (18%) percent per annum until such delinquent assessment or installment thereof, and all interest due thereon, have been paid to the ASSOCIATION. 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, p.29

“the ASSOCIATION is hereby granted the right, at any time any assessment, installment or accelerated installment is not paid within twenty (20) days after its due date, to terminate utility service to the delinquent OWNER'S UNIT.”Master Deed, Article XXVII, p.31

“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, without prejudice to the rights of the grantee to recover from the grantor the amounts paid by the grantee therefor.”Master Deed, Article XXVII.L, pp.32-33

“It is recommended that the Board of Directors periodically commission an independent engineer to inspect and determine the anticipated useful life of each portion COMMON ELEMENTS in order to insure that sufficient reserves are maintained.”Master Deed, Article XXVII.D, p.28

“Casualty insurance covering all of the UNITS, and COMMON ELEMENTS, including, without limitation, the parking and Water Park covered by the Parking Easement and the Amenity Easement, in an amount equal to the maximum insurance replacement value thereof, exclusive of excavation and foundation costs, as determined annually by the insurance carrier, such coverage to afford protection against (i) loss or damage by fire or other hazards covered by the standard extended coverage or other perils endorsements; and (ii) such other risks of a similar or dissimilar nature as are or shall be customarily covered with respect to buildings similar in construction, location and use to the Condominium, including but not limited to vandalism, malicious mischief, windstorm, wind driven rain damage, water damage, and flood damage, if reasonably available.”Master Deed, Article XXIV.A, p.22

“Grantor hereby discloses, and by acceptance of a deed conveying a UNIT each OWNER of a UNIT hereby acknowledges, that the original building comprising the Condominium was constructed in 1994.”Master Deed, Article XXXVII, p.41

“The OWNER of each UNIT shall be liable and responsible for the maintenance, repair, and replacement, as the case may be, of all air conditioning and heating equipment, stoves, refrigerators, fans, or other appliances or equipment, including any fixtures and/or their connections required to provide water, light, power, sewage, and sanitary service to his UNIT and that may now or hereafter be situated in his UNIT.”Master Deed, Article XXI, p.20

“Assuming 100% percent participation, the Bulk Up-Fit project (the "Project") is expected to cost $22,735,260.”Bulk Up-Fit Information Packet, Bulk Plan Notice, Notice Item 3, p.11

“The Association is currently anticipating a loan of up to $22,735,260, at an interest rate of the seven year treasury rate plus 2.75 percent which is estimated at ~ 6.95 percent per annum, over a term of eighty-four (84) months.”Bulk Up-Fit Information Packet, Bulk Plan Notice, Notice Item 3, p.11

“The Loan will be collateralized by the Individual Assessments levied upon the participating owners and their units in connection with the Bulk Up-Fit Project.”Bulk Up-Fit Information Packet, Bulk Plan Notice, Notice Item 3, p.11

“IT SHALL BE CONCLUSIVELY PRESUMED THAT ALL OWNERS WHO HAVE NOT SUBMITTED AN OPTOUT NOTICE BY SUCH DATE, HAVE ELECTED TO PROCEED AND THE INDIVIDUAL ASSESSMENTS AND LIENS SHALL BE FINALIZED AND ISSUED.”Bulk Up-Fit Information Packet, Bulk Plan Notice, Notice Item 5, p.11

“Credit applied over 84 months. Credit is provided ONLY to owners participating in the on-site rental program.”Bulk Up-Fit Information Packet, Appendix A-2, p.16

“Q. Who will be responsible for paying off the balance of the assessment if I sell my unit? A. This will be negotiated between the buyer and seller at the time of sale.”Bulk Up-Fit Information Packet, FAQ, p.10

“Within the Master Deed, the HOA will have the ability to levy individual assessments based on unit type to those owners who choose to participate in the project.”Bulk Up-Fit Information Packet, Letter from HOA Managing Agents, p.3

“Additionally, as your long-term resort management partner, Caribbean Resort Holdings, LLC has expressed its confidence by committing up to $8.9 Million (assuming 100% upfit and on-site rental program participation).”Bulk Up-Fit Information Packet, Why Should We Renovate, p.2

“Regardless of whether you elect to renovate your unit as part of the Bulk Up-Fit program, the Association's Board of Directors has elected to replace all the balcony sliders in the Dominican building.”Bulk Up-Fit Information Packet, FAQ, p.10

“32200 Pool Amenity Contribution 30,000 8,200 (21,800)”2024 Approved Operating Budget, p.1, Revenues

“except that the OWNER of such UNIT shall be, in said instance, required to pay such portion of the costs of such maintenance, repair, and replacement as shall, by reason of the applicability of any deductibility provision of such insurance, exceed the amount of the insurance proceeds applicable to such maintenance, repair, or replacement.”Master Deed, Article XXI, p.20

“GRANTOR has made an initial contribution in the amount of $1,000,000.00 to the ASSOCIATION as reserves for replacements and repairs of components of the Phase I Building to insure that adequate reserves to maintain the building in good repair.”Master Deed, Article XXVII.D, p.27

“The loan fee is expected to be $35,000”Bulk Up-Fit Information Packet, Bulk Plan Notice, Notice Item 3, p.11

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.

The guide's 1 tier is met on its face: the deed gives the commercial unit a perpetual monopoly on front desk, housekeeping, rental-management, key handling, food/beverage and even cable/internet services, changeable only with Grantor consent plus a unanimous owner vote; guarantees it a board seat backed by a director-removal power; lets Grantor successors veto rules affecting it; and exempts its enforcement suits from the arbitration and jury waiver that bind every owner, while the owner-elected board, one-year management contracts and open meetings do not offset a deed-level monopoly.

Commercial unitYes, with its own deed rights

On-site operatorCaribbean Resort Holdings, LLC, managed by Brittain Resorts & Hotels (per the Bulk Up-Fit packet); HOA managing agent is Ally Management, Inc.

Board3 to 7 directors (By-Laws Art. III Sec. 4); five directors elected at the first annual meeting after developer (Class II) control ended, with staggered initial terms of 3, 2 and 1 years and 2-year terms thereafter; at least one director must at all times be a commercial-unit owner, and to secure that seat the CU-1 owner may remove any sitting director and substitute a commercial-unit owner (Secs. 6(b) and 8, pp.73-74; the by-law text reads 'If at any time this is the case', an apparent drafting slip for 'is not the case', so the power is tied to the guaranteed seat rather than being an unconditional removal right); directors removable by majority vote of members; three unexcused absences or 30-day delinquency allows Board removal; officers elected annually by the Board; open board meetings; audited annual report within 120 days of year end (Secs. 7, 16, 20, pp.73-79). The Board may also approve alterations and new amenities on the common elements, including amenities whose access and cost are shared with nearby hotels or condominiums, and assess the cost to all owners as a Common Expense (Master Deed Art. XX, pp.18-19), subject to the By-Laws' member vote where amenity borrowing exceeds 5% of budget (Sec. 21, p.79).

Developer rightsThe Grantor (Caribbean Oceanfront Conversion, Inc.) reserved: the right to add up to five additional phases (Phase II up to 250 residential and 4 commercial units; later phases up to 250 residential and 100 commercial units each, max 115 commercial units) until October 2015 (Art. III, pp.5-7); Class II membership with 4 votes per unit, the right to name a majority of the Board and a 10-day veto over all Board and committee actions, all expiring no later than October 2015 (By-Laws Art. II Sec. 2 and Art. III Secs. 2-3, pp.69-72; Deed Art. XXXII, p.38); unilateral amendment to add phases until October 2020 (Art. XXIX, p.35); exemption from assessments for two months after first sale; the right to use units for sales offices and, with CU-1, four Phase I units as a front desk during Phase II construction (Art. XIV, p.15). Perpetual consent rights (running to successors and assigns) over any amendment of Grantor-reserved rights, Article XIV (commercial restriction), Article XXII (association maintenance duties) and any rule that affects the commercial unit (Arts. XIV, XV, XXII, XXIX). The time-limited rights appear expired on their face; the consent rights do not expire. The Grantor or an affiliate may be employed as managing agent (By-Laws Art. III Sec. 19(a), p.77), Grantor representatives on the Board and the Grantor as a member need not recuse themselves from votes on contracts between the Grantor and the Association (Art. XXXII, p.38), and the Grantor holds a perpetual, transferable right to grant utility, cable, wireless and telephone easements over the common elements without notice to or consent of the Association or owners (Art. VIII, p.12).

Commercial-unit rightsCommercial Unit CU-1 (statutory value 50,000, 1/196 interest) holds: the exclusive right to conduct any commercial activity in the regime, specifically including rental management, key pick-up/drop-off, front desk, concierge, housekeeping, guest laundries, restaurant, lounge, game room, health spa, telephone/cable/internet services, cell towers and food, beverage and retail sales on the pool decks (Art. XIV, pp.15-16; Art. XXXVI.B, p.39; Exhibit B, p.54); exclusive use of the on-premises maids closets, linen chute and service elevator; the 'Hskpg' janitorial rooms on each level as part of the commercial unit itself, plus further cross-hatched areas on each level and the roof cell-tower space as its limited common elements (Exhibit B, p.54); a perpetual exclusive signage and advertising easement over corridors, elevators and the building exterior; an easement to sell pool access to guests of 'Block 5 Units' for an annual fee paid to the regime; the right to alter its own non-structural components without Board consent (Art. XIX, p.19); a guaranteed board seat, enforced by a power to remove a sitting director and substitute a commercial-unit owner whenever that seat is not filled (By-Laws Art. III Secs. 6(b) and 8, pp.73-74); notice and the right to bid on all landscaping and janitorial contracts (By-Laws Sec. 19(c), p.78); the right to enforce Article XIV by suit (exempt from mandatory arbitration) and recover attorney's fees (Art. XXX.C and F, pp.36-37; Art. XL.A.2(v), p.43); and veto by Grantor consent over any rule or amendment affecting its rights. Its own obligations include paying CU-1 dues ($723/month in 2026) and the Block 5 pool fee. It also controls any movable signs on the common elements (Exhibit B, p.54); may itself provide telephone, cable television, internet, wireless broadband and in-room movie services to the regime under a non-exclusive easement, with all wiring and equipment remaining Association property subject to that easement (Art. VIII, pp.12-13), while the Association budgets $66,863 for cable TV and $106,699 for internet in 2026 with the vendor unstated; and the regime is subject to a 2005 rooftop lease with Cellco Partnership for the cell tower whose space is CU-1's limited common element (Art. I, p.2; Exhibit B, p.54), with no cell-tower income shown in the budgets.

VotesOne vote per unit weighted by percentage interest in the common elements (every Phase I unit including CU-1 holds 1/196 = 0.5102%, Exhibit C, p.63); co-owners designate one Voting Member; majority means more than 50%; quorum is 51% of the total vote in person or by proxy; proxies and unanimous written consents permitted; members holding 10% may petition for a special meeting (By-Laws Art. II, pp.68-71).

Changing the deedMaster Deed: proposed by a Board majority or members owning a majority of units, then approved by 67% of members owning a unit at a special meeting, recorded within 30 days (Art. XXIX, pp.34-35). Exceptions: changes to percentage interests or the assessment basis need all owners and their mortgagees; Grantor-reserved rights need the Grantor's written consent; commercial-unit rights need the Grantor plus all commercial unit owners; the Article XIV commercial-activity restriction needs the Grantor plus a unanimous owner vote; Article XXII needs Grantor consent; termination needs all owners and all lienholders (Art. XXVIII, p.33). By-Laws: 67% of the total votes including 67% of non-Grantor votes, with Grantor-reserved provisions needing Grantor consent (By-Laws Art. VI Sec. 6, p.83). Rules: Board alone.

Disputes or lawsuitsNo pending litigation is disclosed in the supplied documents. The Master Deed waives jury trial for all disputes (Art. XXXVIII, p.42) and imposes mandatory negotiation, mediation and final binding arbitration under the South Carolina Uniform Arbitration Act for all claims among owners, the Association and the Grantor, with claims deemed waived if not advanced within 30/15-day windows and loser-pays cost shifting against settlement offers (Art. XL, pp.42-47). Exempt from arbitration: Association collection suits, Association suits for temporary restraining orders, owner-versus-owner suits on claims independent of the deed, suits with a non-bound indispensable party, and suits by the commercial unit owner to enforce Article XIV (Art. XL.A.2, p.43). The commercial unit owner recovers attorney's fees when it prevails on Article XIV (Art. XXX.C, p.36). Grantors under the Parking and Amenity Easements hold their own liens on every unit for easement costs (Art. XXVII, pp.30-31).

What the documents say (20)

“At all times during the continuation of ASSOCIATION, at least one of the Members of the Board of Directors must be an owner of a COMMERCIAL UNIT. If at any time this is the case, the OWNER of COMMERCIAL UNIT CU-1 may select any one of the existing directors to remove from the Board of Directors and substitute for that removed Board Member, a Board Member that is an owner of a COMMERCIAL UNIT.”Master Deed Exhibit E By-Laws, Article III Section 6(b), p.73

“The number of Directors in the ASSOCIATION shall not be less than three (3) nor more than seven (7), as provided below.”Master Deed Exhibit E By-Laws, Article III Section 4, p.72

“At the first annual meeting after the termination of Class II control, five (5) Directors shall be elected.”Master Deed Exhibit E By-Laws, Article III Section 6(b), p.73

“Any Director of the ASSOCIATION may be removed, with or without cause, by a vote of the Voting Members with a majority vote of the membership.”Master Deed Exhibit E By-Laws, Article III Section 7, p.73

“GRANTOR reserves the right at any time to terminate Class II membership by filing an instrument in the records of the Register of Deeds for Horry County, so doing and in any event the Class II membership shall terminate no later than October _, 2015.”Master Deed Exhibit E By-Laws, Article II Section 2, p.69

“The power of the GRANTOR to designate Directors as above referred to shall terminate no later than the _ day of October, 2015.”Master Deed, Article XXXII, p.38

“At such meeting, the amendment or amendments proposed must be approved by an affirmative vote of sixty-seven (67%) percent of the MEMBERS owning a UNIT in the Condominium in order for such amendment or amendments to become effective.”Master Deed, Article XXIX, p.34

“iii) any alteration to the rights or privileges granted or reserved hereunder in favor of the COMMERCIAL UNIT(S) (now or hereafter existing) and the OWNER(S) thereof which are reserved herein exclusively for the benefit of the COMMERCIAL UNIT(S) (now or hereafter existing) and the OWNER'S thereof, which said rights and privileges granted and reserved exclusively unto the said COMMERCIAL UNIT(S) and the OWNER(S) thereof shall only be altered, amended, modified or further granted only with the express written consent of the GRANTOR, its successors and assigns, and all OWNERS of all existing COMMERCIAL UNIT(S)”Master Deed, Article XXIX, p.34

“Provided, however, any such rules or regulations that purport to diminish, abrogate, or in any way effect the COMMERCIAL UNIT(S), 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 UNIT(S), 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, p.17

“The owner(s) of the COMMERCIAL UNIT(S) shall have the right to specifically enforce the provisions of Article XIV restricting the right or authority of the Association or the OWNERS of other UNITS to conduct commercial activities.”Master Deed, Article XXX.F, p.37

“GRANTOR hereby declares, on behalf of itself, the ASSOCIATION, and any OWNER of a UNIT, that any and all right to trial by jury shall be waived by GRANTOR, the ASSOCIATION, or any OWNER of a UNIT in any dispute, proceeding, case, or controversy arising under or related to the within Master Deed, the condition of the building, or UNITS, or COMMON ELEMENTS.”Master Deed, Article XXXVIII, p.42

“This subsection 4 is an agreement of the Bound Parties to arbitrate all Claims except Exempt Claims and is specifically enforceable under the applicable arbitration law of the State of South Carolina.”Master Deed, Article XL.B.4(b), p.44

“Pursuant to the Parking Easement, certain parking for the Regime may be relocated to a another location within one quarter of a mile from the Regime, the relocation to be in the sole and absolute discretion of the Grantor under the Parking Easement, subject to the terms, conditions, and limitations set forth in the Parking Easement.”Master Deed, Article VI, p.10

“Since the OWNER of COMMERCIAL UNIT CU-1 is expected to have a significant landscaping and janitorial staff, the OWNER of COMMERCIAL UNIT CU-1 shall be given notice and an opportunity to bid each time the ASSOCIATION, either directly or through the Manager, is attempting to retain the services of a company to perform either or both of these services.”Master Deed Exhibit E By-Laws, Article III Section 19(c), p.78

“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 five (5%) percent of the budgeted gross expenses of the ASSOCIATION for that fiscal year.”Master Deed Exhibit E By-Laws, Article III Section 21, p.79

“Thereafter and otherwise, but subject to the provisions hereinafter provided, these By-Laws may be amended only by the affirmative vote (in person or by alternate) or written consent of Voting Members representing sixty-seven (67%) percent of the total votes of the ASSOCIATION, including sixty-seven (67%) percent of the votes of Members other than the GRANTOR.”Master Deed Exhibit E By-Laws, Article VI Section 6, p.83

“No management contract may have a term in excess of one (1) year and must permit termination by either party with cause or penalty on ninety (90) days' or less written notice.”Master Deed Exhibit E By-Laws, Article III Section 19(b), pp.77-78

“Telephone, internet access, wireless broadband access, television, cable access, and in room movie services may be provided to the Regime by the OWNER of the COMMERCIAL UNIT CU-I, its successors and assigns.”Master Deed, Article VIII, p.12

“provided however, the making of such alterations and improvements (including amenities to be located on the COMMON ELEMENTS and access and cost to be shared with nearby hotels or condominiums) must first be approved by the Board of Directors of the ASSOCIATION, and, except as hereinafter provided, the cost of the alterations or improvements shall be assessed as a Common Expense to be collected from all of the OWNERS of UNITS according to the percentages set out in Exhibit "C" of the Master Deed.”Master Deed, Article XX, pp.18-19

“The GRANTOR, or an affiliate of the GRANTOR, may be employed as managing agent or manager.”Master Deed Exhibit E By-Laws, Article III Section 19(a), p.77

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

The Master Deed expressly preserves every owner's right to rent or lease, with no minimum stay, and the 2021 Rules explicitly contemplate owners who rent 'either personally, or through an off-site rental management company' (Master Deed Art. XIV, p.15; Rules p.3).
Pools, lazy river, hot tub, pool decks, water park and the parking garage are common elements or easement rights open to all owners' guests, and the Association mails off-program owners wristbands and parking passes each year at no stated charge (Master Deed Art. VII, p.12; Rules pp.2-3).
Dues are unusually inclusive: common and in-unit electricity, water/sewer, fuel, trash, cable TV, high-speed internet, monthly pest control, master casualty insurance and a master HO6 policy are all in the budget (2026 Budget p.1).
The 2026 combined budget is flat at $5,474,916 (0.0%) with residential monthly fees unchanged, after reserves were raised to $1,121,446 (20.5% of budget) and insurance fell $144,163 (2026 Budget p.1).
The $100,000 annual 'Insurance Catchup' line carried in 2023-2025 was eliminated in 2026, and the Master HO6 expense is fully offset by a matching HO6 assessment revenue line (2024 and 2026 Budgets p.1).
Developer control is time-limited and expired by October 2015; the board is now owner-elected, directors can be removed by a simple majority, board meetings are open, and an audited annual report is required (By-Laws Art. II Sec. 2, Art. III Secs. 7, 16, 20, pp.69-79).
The Association must carry casualty insurance on all units and common elements at full replacement value including windstorm, wind-driven rain, water and flood damage 'if reasonably available' (Master Deed Art. XXIV.A, p.22).
Management contracts are capped at one year and must be terminable on 90 days' notice, and the Board cannot borrow more than 5% of budget for new amenities without a member vote (By-Laws Art. III Secs. 19(b) and 21, pp.77-79).
Fines follow a warning, then notice, hearing and appeal, and under the By-Laws are assessed first against the offending occupant before the owner (Rules p.4; By-Laws Art. III Sec. 23, pp.79-80).
Owners who skipped the Bulk Up-Fit could keep renting during construction except for a one-to-two-week slider replacement, although the packet 'strongly discouraged' renting while work was under way on the owner's floor or the floors above and below, and the Board elected to replace balcony sliders for all units in the Dominican building regardless of participation (Bulk Up-Fit packet p.10).
The deed treats off-site management as normal: owner-authorised 'rental managers and their agents' are expressly recognised for emergency entry, and the Rules address owners who rent 'personally, or through an off-site rental management company' (Master Deed Art. XVII, p.18; Rules p.3).
The developer seeded a $1,000,000 replacement reserve at conversion, the Board must keep a separate replacement reserve sized to component useful lives, and owners and mortgagees may inspect the books, minutes and quarterly financial and delinquency reports (Master Deed Art. XXVII.D, pp.27-28; By-Laws Art. III Sec. 20 and Art. VI Sec. 4, pp.78-82).

Watch-outs

Deed-level commercial monopoly: only the commercial unit owner may run a front desk, rental management, housekeeping, concierge, laundry, restaurant/lounge, spa or game room, off-program owners may not use any common element 'to engage in the business of renting', their cleaners cannot use the maids closets, linen chute or service elevator, and this cannot change without the Grantor's consent plus a unanimous owner vote (Master Deed Art. XIV, pp.15-16).
Off-program guests are shut out of the Tiki Bar, 2nd-floor meeting room, 3rd-floor spa, 5th-floor guest laundry and game rooms, front desk, and housekeeping/maintenance; listings may not mention or show those amenities and must carry the all-caps disclaimer, and every guest must be sent the Rules before arrival (Rules pp.3-4).
A 30-minute response point of contact and a full occupancy registry (every occupant plus contact details) are mandatory for renting owners (Rules p.4, UNIT OCCUPANCY).
Off-program trash cannot go down the chutes; guests or cleaners must bag it and carry it to the compactor across the street at the parking garage, and bulky items must go off-site at the owner's expense (Rules p.3, TRASH).
No lockboxes anywhere in hallways or stairwells, lock changes need Board approval, and the Association (via the resort front desk) must hold a working key or access code to the unit (Rules p.2; Master Deed Art. XVII, p.18).
Fines start at $200 per infraction plus $50 per day for wilful violations, $250 for any smoking or vaping (including inside the unit), and any item thrown from a balcony gets all guests evicted; fines attach as a lien and personal obligation of the owner even when guests violate (Rules pp.2-4).
The commercial unit is guaranteed a board seat at all times and, to secure that seat, may remove a sitting director and substitute a commercial-unit owner (the by-law wording 'if at any time this is the case' appears to be a slip for 'is not the case'); any rule that affects its rights is not binding on the Grantor or its successors and assigns without the Grantor's written consent; and it can sue to enforce Article XIV outside the arbitration everyone else is bound to and recover attorney's fees (By-Laws Art. III Secs. 6(b) and 8, pp.73-74; Master Deed Arts. XV, XXX.C-F, XL, pp.17, 36-37, 43).
All owner disputes are subject to a jury-trial waiver and a mandatory negotiation-mediation-binding arbitration process with claims deemed waived if deadlines are missed and loser-pays cost shifting (Master Deed Arts. XXXVIII and XL, pp.42-47).
Bulk Up-Fit: the HOA planned to borrow up to $22,735,260 at ~6.95% over 84 months (loan 'anticipated' and not yet closed when the packet was printed; expected $35,000 loan fee) secured by individual assessments and liens of $45,031-$99,286 per participating unit (priced at 71% participation), owners who stayed silent by April 30, 2024 were deemed in, the ~40% operator credit goes ONLY to on-site program owners, first payments were due about 30 days after completion (expected April 2025), and the unpaid balance at resale 'will be negotiated between the buyer and seller', so a buyer must verify any remaining up-fit lien and monthly payment on a specific unit (Bulk Up-Fit packet pp.10, 11, 15-23).
Insurance is the largest expense: $1,520,000 or 27.8% of the 2026 budget ($1,785,000 or 32.6% including the master HO6), after jumping 36.8% in 2024 and 12.1% in 2025, with a $100,000 catch-up line needed in 2023-2025; wind and flood deductibles are not stated (2024 and 2026 Budgets p.1).
The combined budget rose 10.0% in 2024 and 7.7% in 2025 and regular assessments rose 10.5% and 8.1% in those years before flattening in 2026 (2024, 2025 and 2026 Budgets p.1).
The budget is a combined one for two associations (Phase I pays 33.076%, Phase II 66.924%); Phase I owners fund a share of pools, attendants, security and garage costs enjoyed by the larger tower, and the Caribbean Tower HOA's deed is not in this set (2026 Budget p.1).
Parking is not on the regime's land: it exists under a Parking Easement that the easement grantor may relocate anywhere within a quarter mile at its sole discretion without owner or board consent, and the Association must pay all garage costs as a Common Expense and chase reimbursements from other users; the easement grantor holds its own lien on every unit (Master Deed Art. VI, p.10; Art. XXII, p.21; Art. XXVII, pp.30-31).
Pool decks, pools and spas are shared with other accommodation properties in Blocks 2 and 4 under a reciprocal easement, and CU-1 may sell pool access to guests of 'Block 5 Units' for an annual fee; owners and the board have no right to refuse (Master Deed Art. VI, pp.10-11).
The building was constructed in 1994 and converted in 2005; units were accepted 'as is' with the Grantor disclaiming mold, mildew and oceanfront climatic problems (Master Deed Art. XXXVII, pp.41-42).
Delinquency terms are harsh: 18% interest, $25 late fee, acceleration of the annual assessment, utility shut-off after 20 days, foreclosure with a receiver collecting market rent, and a buyer is jointly liable for the seller's unpaid assessments (Master Deed Art. XXVII G-L, pp.28-33).
Owners are responsible for HVAC, appliances, fixtures, window glass and sliding glass doors, and the Association may enter monthly to spray for pests (Master Deed Arts. XVIII and XXI, pp.18-20).
Guests may not bring pets; only owners may have them, leashed and never on the pool deck (Rules p.2, PETS).
The 2021 Rules attribute the trash-chute exclusivity to the Master Deed, but the 2005 deed text lists trash chutes as common elements and reserves only the maids closets, linen chute and service elevator to CU-1; the recorded amendments (at least three, including the Third Amendment of June 17, 2022) that may explain this are not in the set (Rules p.3; Master Deed Art. XIV, p.16 and Art. XXXVI.J.6, p.41; Bulk Up-Fit packet p.11).
No reserve study, reserve balance, insurance certificate, minutes, financial statements or delinquency report were supplied, so the 20.5% reserve contribution cannot be checked against actual component needs for a 30-year-old oceanfront tower (Master Deed Art. XXVII.D, p.28 recommends periodic engineer studies).
Key handling is squeezed from both sides: lockboxes are banned in hallways and stairwells, lock changes need Board approval, the Association must hold a working key or code, and 'key pick up and drop off' is one of the accommodation services the deed reserves to the commercial unit, so a self-managing owner cannot operate any key exchange on the common elements (Rules p.2; Master Deed Art. XIV, p.16).
Owners carry the master-policy deductible for in-unit damage: where an insured loss hits owner-maintained items (HVAC, appliances, glass, finishes) the owner pays the portion within the Association's deductible, and the owner is liable for any repair cost or insurance-rate increase caused by guests or lessees that insurance does not cover; neither the deductible amount nor the wind/named-storm terms appear in the budgets (Master Deed Art. XXI, p.20; Art. XXX.B, p.36).
The deed assumes the Association will recoup pro-rata garage and water-park costs from other users, but the budgets show only $8,200 of Pool Amenity Contribution revenue (down from $30,000 in 2023) and $59,494 of Trash Contributions against $381,290 of pool, attendant and garage expense in 2026 (2024 and 2026 Budgets p.1; Master Deed Art. XXII, p.21).
The Board alone may approve new amenities on the common elements, including amenities shared with nearby hotels or condominiums, and assess the cost to all owners; only amenity borrowing above 5% of budget needs a member vote (Master Deed Art. XX, pp.18-19; By-Laws Art. III Sec. 21, p.79).
The commercial unit may itself be the regime's cable, internet, phone and movie provider under a deed easement, while the Association pays $66,863 for cable TV and $106,699 for internet in 2026 with the vendor unstated, and the Grantor can grant further utility and wireless easements over the common elements without owner consent (Master Deed Art. VIII, pp.12-13; 2026 Budget p.1).
The Bulk Up-Fit packet shows HOA-funded 'Laundry Room' and 'Fitness Center' renovations, yet the Rules reserve the 5th-floor Guest Laundry to on-site program guests and never mention a fitness center, so off-program owners may be paying to renovate spaces their guests cannot use (Bulk Up-Fit packet p.4; Rules p.4).

Unit type	Per month	Per year
Phase I (Caribbean Oceanfront Tower) 1 Bedroom - 195 units, 0.16875% each of combined budget ($723.14 dues + $38.11 Master HO6)	$761	$9,132
Phase I Commercial Unit CU-1 (dues only, no Master HO6) (up $1/month from 2025)	$723	$8,676
Phase II (Caribbean Tower) A - 3 Bed, 19 units ($1,813.01 + $95.54 HO6)	$1,909	$22,908
Phase II B - 2 Bed, 19 units ($1,364.17 + $71.89 HO6)	$1,436	$17,232
Phase II C - 3 Bed, 19 units ($1,573.00 + $82.89 HO6)	$1,656	$19,872
Phase II Cr - 3 Bed, 38 units ($1,573.00 + $82.89 HO6)	$1,656	$19,872
Phase II D - 2 Bed, 19 units ($1,322.13 + $69.67 HO6)	$1,392	$16,704
Phase II E - 4 Bed, 19 units ($2,123.53 + $111.90 HO6)	$2,235	$26,820
Phase II F - 2 Bed, 18 units ($1,459.09 + $76.89 HO6)	$1,536	$18,432
Phase II G - 3 Bed, 18 units ($2,016.41 + $106.26 HO6)	$2,123	$25,476
Phase II commercial - Desk, Closets (1 unit) (up $596/month from 2025)	$7,845	$94,140
Phase II commercial C3 - Bar (1 unit) (up $19/month from 2025)	$255	$3,060
Phase II commercial C4 - Sales (1 unit) (up $15/month from 2025)	$203	$2,436
Phase II commercial C5 - Retail (1 unit) (up $32/month from 2025)	$427	$5,124

Caribbean Resort.

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.

Caribbean Resort.

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.