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New Owner Handbook

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2GOVERNANCE AT SEA COLONYCondominium Associaons There are 30 condominium associaons in Sea Colony, called Phases. Each condominium associaon has an elected Council of homeowners who employs a Managing Agent. ResortQuest Property Management manages all Phases except Edgewater House, which is managed by Legum and Norman. More informaon on your specic condo can be found in the governing documents you received at selement and from your Phase Council and Property Manager. Sea Colony Recreaonal Associaon Addionally, all homeowners are members of the Sea Colony Recreaonal Associaon, Inc., (SCRA), which has an elected volunteer Board of Directors composed of homeowners, and is organized to maintain, operate and administer Sea Colony’s common areas, all amenies, Safety and Security and other community facilies. The SCRA Board employs ResortQuest as its managing agent. Every homeowner is a member of SCRA, which is responsible for all of the community amenies such as the Promenade, the beach, tennis center and courts, indoor and outdoor pools, tness centers, community meeng rooms, playgrounds, parks, transportaon system, Westway Drive, year-round safety and security and all related equipment and systems. Sea Colony’s website, www.SeaColony.com has nearly everything you may want to know about the community, schedules, acvies and meengs. Owners need to create a sign-in and password on the Owners tab to view community documents, commiee and Board schedules, meeng minutes and other owner-exclusive informaon. The Board of Directors conducts open meengs and owners are invited to aend. Councils & Recreaonal Board Your condominium associaon and the SCRA are each overseen by a council consisng of volunteer owners elected by owners. Your council members include at a minimum, a president, vice president, and secretary/treasurer. The total number of council members varies by Phase and might include advisors and associate members. There are 7 SCRA directors. The Council and SCRA get its authority from the governing documents and has all the powers and dues necessary for the administraon of the condominium and Sea Colony common amenies.Welcome to Sea Colony - a unique community that has provided family fun and delight for owners, guests and visitors since it rst opened in 1972. You can be proud of the wonderful facilies -- the private beach, tennis courts, pools and tness centers, the parks and playgrounds. Our sta works hard to maintain them as the nest resort and tennis community in the Mid-Atlanc region. This booklet includes a variety of helpful details for you. All community informaon can be found online at www.SeaColony.com, so it’s important to visit the website and register on the Owners secon. You’ll have access to exclusive owner-only informaon and receive current news and informaon about your community. Your owner informaon is used only for Sea Colony business and is not provided to any enty without your permission. Your volunteer Board of Directors is focused on your family’s enjoyment of the community and is commied to enhancing your Sea Colony quality of life through solid property values and strong rental demand while being scally responsible. Congratulaons and welcome to the community. We hope you’ll nd this handbook a good source of Sea Colony informaon. If there’s anything we can do for you, send an email to Helpme@SeaColony.com.Dear Homeowners,LETTER FROM THE BOARD OF DIRECTORS

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3STAY CONNECTEDSOCIAL MEDIA - Connect with your community!FACEBOOK Sea Colony/Freeman Fitness Center/Tennis Center: facebook.com/SeaColonyDESea Colony Ocial Facebook Group: facebook.com/groups/ocialseacolonycommunityINSTAGRAM: instagram.com/seacolonyresortTV FEEDS There are TVs throughout the community displaying informaon including events, safety ps and more at:• Edgewater Security Lobby • Beach Shoppe • Freeman Fitness Center Lobby • Tennis Center• Freeman Fitness Center Weight Room More ways than ever to stay connected.Sea Colony oers a variety of opons to keep up with informaon and events through: • www.SeaColony.com • Community email blasts • Social Media (Facebook & Instagram) • Cable Channel 970/971 • Sea Colony’s Mobile App (Available for Android and IOS) • Tram Tracker • The Sea Colony Play Book • Rack cards and brochures • Community Bullen Boardswww.SeaColony.comSea Colony’s website, www.SeaColony.com provides community informaon, current events, announcements, special events and daily schedules. There are secons of the website that have informaon exclusively for owners. Meeng minutes, budget informaon and documents are available in this Owner secon of the website. Many owners provide their email addresses, which are used only to send community-related updates. Please be sure your Property Management has your current email address.

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4As a Sea Colony homeowner, you will receive separate quarterly bills from SCRA and your individual Phase. Your quarterly fees each consist of two parts – the Operang fund and the Long Term Reserve. Payments are due April 1, July 1, October 1, and January 1. Owner accounts for both SCRA and individual Sea Colony condo associaons (called Phases) must be current to take advantage of the programs, facilies and amenies. Direct Debit Opon AvailableA direct debit opon is available and allows you to pay your associaon fees on a quarterly basis. All Phases managed by ResortQuest also can use direct debit for your quarterly condominium fees. There is no cost to owners to sign up for the direct debit opon. To take advantage of this service, please go to the Owners page of www.SeaColony.com, scroll to the Direct Debit Opon informaon and click on the link to complete the authorizaon form. You may also call Accounts Receivable at 1-800-732-2656, ext. 8887, and a form can be faxed or mailed to you. Once completed, please return the form to ResortQuest, c/o Accounts Receivable, PO Box 480, Bethany Beach, DE 19930. Where to Send Checks for Quarterly Statements Please be sure to mail your checks for SCRA statements to:Sea Colony Recreaon, PO Box 8019, Philadelphia, PA 19101 and your Phase statements to: Sea Colony Phase Dues, PO Box 8539, Philadelphia, PA 19101Costs Covered by CONDO Fees• Property management services and administraon• Building maintenance of common areas including stang, supplies and materials• Water• LTR building improvements• Trash removal• Insurance for the common elements• Flood insurance• Cable TV/Internet• Electric for common areas• Landscaping• Exterminang Costs Covered by SCRA Fees• Maintainenance, operaon and administraon of the common areas and community facilies in Sea Colony including the beach, pools, recreaon, retail, tennis courts, landscaping, housekeeping, transportaon, security and safety;• Employment of managers, sta, agents and independent contractors in support of the amenies and community facilies.Addional ExpensesAs a Sea Colony owner, expenses billed by third pares you can expect are:• Sewer bill (quarterly)• Electric bill - Delmarva Power (monthly)• Propane, if applicable - Suburban Propane (monthly)• Telephone, if applicable (monthly)FINANCIAL INFORMATION• Ground rent, if applicable (annual) East Phases 1 - 2 and West Phases 12 - 23 receive statements from Carl M. Freeman Co. (240-453-3010) East Phases 3 - 7 and West Phases 1 - 11 receive statements from Freeman Foundaon (302-436-6241)All ground rent quesons may be sent to Ilona Ghine, ighine@cmfa.com; 240-453-3015. Beach CommunityEast 1 – Annapolis & Brandywine Houses – 208 unitsEast 2 – Chesapeake & Dover Houses – 176 unitsEast 3 – Edgewater House – 177 unitsEast 4 – Farragut House – 108 unitsEast 5 – Georgetowne House – 108 unitsEast 6 – Harbour House – 108 unitsEast 7 – Island House – 108 units Tennis CommunityWest 1 & 2 – 26/32 unitsWest 3 – 24 unitsWest 4 – 24 unitsWest 5 – 18 unitsWest 6 – 79 unitsWest 7 – 32 unitsWest 8 – 100 unitsWest 9 – 16 unitsWest 10 – 46 unitsWest 11 – 44 units West 12 – 48 unitsPhase/HOA Responsibilies All common elements as dened by the Declaraon and include the following. For a more comprehensive list, consult your governing documents:• Elevators (East side)• Exterior walls• Roof• Structural components• Sanitary and storm sewer systems and appurtenances• Plumbing facilies deemed common elements (not located within a unit)• Ducts, conduits, plumbing and wiring that are located outside the unit that serve more than one unit• Catch basins, roof drainage pipes, guers and leaders• Landscaping maintenance• Exterminang• Common stairways leading to unitsWest 13 – 40 unitsWest 14 – 32 unitsWest 15 – 112 unitsWest 16 – 46 unitsWest 17 – 84 unitsWest 18 – 68 unitsWest 19 – 119 unitsWest 20 – 197 unitsWest 21 – 5 unitsWest 22 – 12 unitsWest 23 – 5 unitsCONDO ASSOCIATIONS BY PHASE

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5FINANCIAL INFORMATION (cont.)Insurance1. Sea Colony has secured a single “master” insurance policy (MIP) which covers all Condominium Associaon (“Phase”) buildings and the Sea Colony Recreaonal Associaon, Inc. (SCRA) buildings and amenies (pools, Promenade, playgrounds, tness and tennis centers, etc.). Flood coverage for buildings is also provided under the MIP unless your building is in a special hazard ood zone, in which case a Naonal Flood Insurance Program (NFIP) policy has been purchased. The premium cost of the MIP is shared among all of the insured enes (the 30 Phases and SCRA). Currently, the property deducble is $50,000 per occurrence for all covered losses except “Named Storms” (hurricanes), for which the deducble is $1 million. Since absorbing a large deducble within a single Phase could be dicult, SCRA has established a deducble fund, the escrowed funds for which are derived from the owners of Sea Colony’s 2202 condominium units paid by the Phases along with their allocated insurance premium, which is, therefore, included in your assessments. This plan eecvely limits the deducble exposure for any single Sea Colony unit owner in the event of a large property claim. Sea Colony also purchases various other policies (Crime, Directors and Ocers liability) which also are paid for proporonally by the Phases or SCRA, and are, therefore, also included in your assessment. If you have quesons, consult your governing documents and Phase insurance agreements, contact your Property Manager or send an email to Insurance@SeaColony.com.2. Flood InsuranceAs previously noted, ood insurance policies are purchased on all Sea Colony buildings, as required, and the cost thereof is included in the condo fees paid by the owners of condos in the aected building(s). Please note these policies cover only the building, not the contents of individual condos, coverage for which can be purchased by owners as needed or desired. Owners may receive requests from their mortgage holders to provide proof of ood insurance for their building. Email all such requests to Sea Colony’s insurance broker, Alliant Insurance Services, at SeaColony@Alliant.com and copy Insurance@SeaColony.com. Alliant’s customer service team will then send proof of ood insurance to the lender, and if requested, to the owner, too.3. ALL Sea Colony unit owners are required by their Phase Code of Regulaons to purchase an individual property and liability policy (which usually comes in the form of an HO-6 Condominium policy), the minimum limits of which may vary depending upon your Phase. In most cases, owners are responsible for everything “inside the box” of the walls of their condo (from the inside surface of the drywall) - paint, wallpaper, appliances, mechanicals, doors, oor coverings, kitchen cabinets (Except West Phase XIX), wall le, plumbing xtures, furniture, personal property, etc. Your individual Phase Code of Regulaons documents (Amendment Change - Arcle VI, Secons 2 and 3) denes what is covered and by whom, important informaon to provide to your insurance agent in placing the correct amount of coverage. What To Do If Your Condo Sustains Damage Please nofy your property manager of any claim being made.Exterior damage - contact your Property Manager, who will then iniate the process of ling a claim on Sea Colony’s MIP.Interior damage - contact your insurance agent/carrier and le a claim, regardless of the presumed source of the damage or where you think liability should be assigned. Your insurance company can then make a formal determinaon on the validity of the claim and the extent of damages, and coordinate with other insurance carriers, if appropriate to do so. Minimum Required Property Coverage - $50,000 per unit in all Phases EXCEPT East Phase V ($100,000).Minimum Required Liability Coverage - $100,000 per unit in all Phases EXCEPT East Phase V ($300,000).These limits are minimums; you can purchase higher limits at your discreon. If you rent your unit, you may be requuired to carry higher limits.Loss Assessment Coverage - Most standard HO-6 policies include $1,000 for Loss Assessment. Higher limits are available at what is usually a minimal cost. Should you ever be assessed aer a loss, this is the coverage that would help pay for that expense. Coverage is recommended but not required. Loss of Use CoverageCoverage for Loss of Use is recommended but not required for owners who rent their unit. Your insurance agent should be able to explain and secure these coverages for you.Loss of Income CoverageCoverage for Loss of Income is recommended but not required for owners who rent their unit. Your insurance agent should be able to explain and secure these coverages for you.

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6SAFETY & SECURITY INFORMATION YOUR SAFETY IS OUR CONCERN; YOUR ENJOYMENT IS OUR GOALHere are helpful ps to ensure you have a great me at Sea Colony... • Please wear your Sea Colony Rec. badge at all mes. It gains you access to the property as well as the use of all of our amenies (beach, pools, tennis courts, trams, etc.). • Be sure your parking permit is properly displayed. With the increase in guests during the summer season, our parking spaces can become limited, so be sure your vehicle is parked in its corresponding reserved space (if applicable). If you are an East Side resident, there are maps in building lobbies to direct you to your reserved space.• Please obey the community parking laws, especially around re lanes and hydrants. • Have bicycles? Be sure to wear helmets and lock up when your bikes aren’t in use. Also, use the bike racks available in the community. • Automac External Debrillators (AEDs) provide electrical therapy for irregular heart issues. Trained sta can assist. Locaons: Edgewater Lobby Beach Shoppe Edgewater Indoor Pool Tennis Center Freeman Fitness Center Maintenance truck Security vehicles Beach Patrol vehicle Maintenance Shop• All members of the Security Team are here to assist you in any way we can within the context of the Associaon guidelines, which were created and endorsed by owners. Our goal is for everyone to enjoy a pleasant, safe and secure season. Quesons? Contact Security, available 24/7 at 302-539-5599.Sea Colony is home to a half mile of sandy private beach for your enjoyment. During the season, our beauful beach is guarded daily with 6 numbered lifeguard stands. Each has a dierent color for easy recognion by all of our guests. These stands have informaon boards posted on the back with the daily beach and ocean condions as well as any hazards. There are 12 outdoor heated pools in Sea Colony with cered lifeguards on duty. The Beach Patrol sta wants to enhance every guest’s experience, so patrons are encouraged to ask quesons. Addionally, Sea Colony’s beach is a United States Lifeguard Associaon (USLA) advanced cered beach which upholds higher training standards for the Beach Patrol. Most notably, all Beach Patrol guards obtain and maintain an Emergency Medical Responder cercaon. And if you’re curious about the quality of our lifeguards, their stats speak for themselves. For more details and photos, go to hps://www.SeaColony.com/beach.David Grith heads the Beach Patrol sta . Captain Grith has guarded the shores in Delaware, Maryland, and Florida for many years. At Sea Colony, we make safety our No. 1 priority; and our goal is to provide everyone with the best experience possible.

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7 Parking & Parking Permits People aged four and over must have and display their badge when in the beach community or when using the tram, facilies, and any amenity. Every car on property must display the appropriate parking permit. Owners are issued no more than three owner parking permits for their vehicles and one visitor parking permit. Addionally, two temporary parking permits are issued, as needed, for a maximum total of six parking permits per unit. Owners who rent their units may not exceed the per unit maximum. Owners may not share their parking permits or badges with renters, who MUST obtain badges and parking permits at the Sea Colony Beach Shoppe.Addional Parking Opons• On Demand Parking - Owners in the beach community who are not on property and do not have family or renters using their units can oer their reserved parking space to others and earn a fee (which is credited to your SCRA assessment mailed in December and due January 1). Current parcipang East Phases are 2,4,5,6,and 7. Prior to the summer season, more details about On Demand Parking are available at www.SeaColony.com.• Town of Bethany Beach – 302-539-8011 – Tickets may be purchased at any Pay Staon as a Daily, 3 Day, and Weekly Pass. 911 Address Idencaon Do you know your 911 address? Is it posted in a visible spot so you or a guest can access it should an emergency arise? Your address depends on where you are located. For your convenience, print the graphic below, complete and place in visible locaons. Beach Community: Your 911 address is your unit number and building, followed by the word “Road.” Be sure to say you are in Sea Colony.Tennis Community: Groups of units have a building number. To report your locaon, provide the building number and street name, followed by the unit number, and be sure you tell the dispatcher you are in Sea Colony. Need to nd your 911 Address? Visit SeaColony.com, under the “Community” tabSAFETY & SECURITY INFORMATION (cont.)PARKING INFORMATIONDuring the summer, parking is very limited, especially in the beach community. Shule service is provided throughout the summer from 9 a.m. to 9:00 p.m. (last pick up is at 8:30 p.m., except during the 4th of July weekend and other special events, when the last pick up is 10:30 p.m.). Owners and guests are encouraged to use this free service.

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8Key ReleaseTo obtain a key for a contractor’s use in a Sea Colony unit managed by ResortQuest, the owner may call 302-541-5809 from 8 a.m. to 4:30 p.m. or email DelawareKeyRelease@Vacasa.com. Keys may be picked up from 8 a.m. to 4:30 p.m. Monday thru Friday in the o-season and Monday thru Saturday (closed Sunday) in-season -- April 1 through September 29 -- at the ResortQuest oce at Short Road in Bethany Beach. It is the contractor’s responsibility to return the key.PetsAnyone issued a valid homeowner badge is permied to have a pet on property. Pets must be registered at the Beach Shoppe/Recreaonal Oce and require proof of current inoculaons. Owners will be issued a green tag with a current year scker. Doggie bag dispensers are located throughout the community for waste cleanup. Pets must be leashed at all mes when outside the unit. See Pet Rules on www.SeaColony.com/Rules-Policies. RecyclingLook for recycling bins on the beach, and next to the Annapolis House basketball court; West Lake by Woodland View, Forest Hills Court, Singles Court, Pine Wood Drive, Round Robin Way, South Winds Lane, and Lakeside Circle. For more informaon, go to www.SeaColony.com/Recycle. RentalsIf you rent your unit, please be sure renters know they must purchase badges for everyone in their party four years of age or older; renters must purchase three or more badges to obtain up to two parking passes; owners should provide renters with a signed leer of authorizaon. COMMUNITY INFORMATIONBeach and Pool SafetyDuring the summer, Safety Seminars with potenally life saving informaaon are held every Sunday around noon at the six lifeguard stands on the beach and at the pools. Rip currents, surf condions, cauons about body surng and ways to prevent injuries are among the topics. People also are directed to the Informaon Boards posted at the lifeguard stands. Every day water temperature, weather condions and other informaon lifeguards want guests to know are posted.Cable/Internet InformaonAs part of the condo associaon fee, owners pay for cable and internet service. Owners have internet service with 1 wireless gateway modem/router and cable service with one high denion DVR set top box with voice remote and two high denion digital tuners (DTAs) included in the cost of the service, provided by Comcast Xnity. For more informaon and FAQ’s, go to www.SeaColony.com/Comcast. Community Bullen Boards There are 5 in the tennis community located on Westway by Marketplace and at the pool entrances of T1 - T4, and another on the Edgewater beach. Check for updates every Friday in peak season. Contractors ListResortQuest Property Management has a list of contractors recommended by owners. If you are looking for a parcular trade, contact your Property Manager for an up-to-date list. Kayak StorageKayak storage-rack rentals are available to owners and may be purchased at the Sea Colony Beach Shoppe. Rack spaces, located o of Kent Avenue on the le side of the road across from and Freeport Court, are leased annually to Sea Colony owners only. Oversized and tandem kayaks storage racks also are available. There is no parking at the launch except to transport kayaks to the rack area. Vehicles then will need to be removed. For convenience, bike racks are available on site.

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9LOOKING FOR GIFTS? You can nd exclusive Sea Colony wear in two locaons. • The Beach Shoppe in Marketplace, See www.seacolony.com/Retail for hours• Tennis Pro Shop at the Tennis Center Open Daily 8:30 a.m. to 6 p.m.THE TENNIS CENTER 39359 Racquet Lane, Sea Colony, Bethany Beach, DE. 302.539.4488The Sea Colony Tennis Center is ranks among the best in the world by Tennis Resorts Online. Each year, Sea Colony Tennis hosts USTA tournaments for all ages, and oers many socials and pro exhibions. Tennis Court ReservaonsOwners may make tennis court reservaons by either calling the homeowner line (302-539-3736), using the online court reservaon system, Court Reserve, which can be downloaded to your iPhone or Android device through any app store. All other court reservaons must be made in person with a Sea Colony Owner’s Photo ID or Recreaon badge. For more informaon, call the Tennis Center at 302-539-4488.THE FREEMAN FITNESS CENTER38994 Westway Dr., Sea Colony, Bethany Beach, DE. OPEN DAILY 6:30 a.m. - 9 p.m.The center oers:• A large, deep and accessible indoor pool, hot tub and sauna with more deck space• An Aerobics Room with a sound and audio visual system for screening movies• A Cardio and Weight Room with new equipment that supports expanded workout acvies • Large and updated locker rooms for men, women and families• Expanded parking to accommodate acvies• Personal Training - For more informaon call 302-539-4511 or check out www.SeaColony.com/trainers for our list of trainers.Please keep in mind:• Show your Sea Colony-issued ID badge and scan at the front desk.• Children 12 years and under must be accompanied by an adult.• 14 and 15 year old children may use the cardio and weight room but must be accompanied by an adult.The EDGEWATER FITNESS CENTEROn the east side of the community is the Edgewater House Fitness Center with an indoor pool, hot tub, weight training and cardio exercise machines, and free weights. During the summer months, there are aerobics classes in the Ron Wickwire Community Room to give you a great workout.RETAILFITNESSTENNISNeed badges, homegoods, parking permits, dog tags for owner pets, beach apparel or more? Stop by the Beach Shoppe and roam around a bit. New merchandise arrives oen, so once is NOT enough! Owner Discounts at the Tennis CenterTake advantage of your year-round benets and preferred pricing.For more informaon, go to SeaColonyTennis.net or call 302-539-4488.

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10CONTACTSDepartmentsBeach and Pools, Sea Colony • 302-541-8847Beach Shoppe & Rec. Oce (Badges & Parking) • 302-541-5988Freeman Fitness Center • 302-539-4511 Homeowner Communicaons, Sea Colony • 302-541-8835Claudia K. Thayne, Manager, Claudia.Thayne@Vacasa.com www.SeaColony.com Housekeeping & Landscaping, Sea Colony • 302-541-8839 Lost & Found • 302-539-5599 Maintenance, Sea Colony • 302-541-8834 Retail, Sea Colony • 302-541-8842Sea Colony Board of Directors • Board@SeaColony.com Security, Sea Colony • 302-541-5599Tennis Center • 302-539-4488 • www.SeaColonyTennis.net Property ManagementEdgewater Building ManagementLegum & Norman • 302-537-9499 ResortQuest Accounts Receivable • 302-541-8887 ResortQuest Delaware Key Release • 302-541-5809 • DelawareKeyRelease@ResortQuest.comResortQuest Delaware Owner and Rental Informaonis available on www.SeaColony.com websiteResortQuest East Property Management • 302-541-8831Annapolis/Brandywine, Chesapeake/Dover, Farragut, Georgetowne, Harbour, Island ResortQuest West Property Management • 302-537-4660 Any community quesons?Helpme@SeaColony.comfacebook.com/groups/ocialseacolonycommunityAddressShort Road - Authorized Key Release/Accounng33176 Coastal Highway, Suite 3Bethany Beach, DE 19930Visit www.SeaColony.com for everything Sea Colony; and www.SeaColonyTennis.net for everything tennis!

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reasons to rent your Sea Colony home with us!• Added income• Oset costs• Pay for home improvements• The resort’s only onsite oce• Sea Colony’svacation rental leadersince the early 1970sWVRDELAWARE.com800.732.2656Broker: 302-541-5959Surf our Web site for photos, descriptions, up-to-the minute availability and to book your next Sea Colony vacation today! 5Marketplace at Sea Colony, Bethany BeachRental Oce: NOW BOOKING 2021!Lock in your next Sea Colony vacation today!Call to book!Join a winning partnership!Call Christy at 833.219.8587or e-mail Christy.Conaway@Vacasa.com Are you considering renting your Sea Colony home when you’re not using it?