(a) Except in the case of a taking of all the units by eminentdomain (G.S. 47C‑1‑107), a condominium may be terminated only byagreement of unit owners of units to which at least eighty percent (80%) of thevotes in the association are allocated, or any larger percentage thedeclaration specifies. The declaration may specify a smaller percentage only ifall of the units in the condominium are restricted exclusively tononresidential uses.
(b) An agreement to terminate must be evidenced by the executionof a termination agreement, or ratifications thereof, in the same manner as adeed, by the requisite number of unit owners. The termination agreement mustspecify a date after which the agreement will be void unless recorded beforethat date. A termination agreement and all ratifications thereof must berecorded in every county in which a portion of the condominium is situated, andis effective only upon recordation.
(c) In the case of a condominium containing only units havinghorizontal boundaries described in the declaration, a termination agreement mayprovide that all the common elements and units of the condominium shall be soldfollowing termination. If, pursuant to the agreement, any real estate in thecondominium is to be sold following termination, the termination agreement mustset forth the minimum terms of the sale.
(d) In the case of a condominium containing any units not havinghorizontal boundaries described in the declaration, a termination agreement mayprovide for sale of the common elements, but may not require that the units besold following termination, unless the declaration as originally recordedprovided otherwise or unless all the unit owners consent to the sale.
(e) The association, on behalf of the unit owners, may contractfor the sale of real estate in the condominium, but the contract is not bindingon the unit owners until approved pursuant to subsections (a) and (b). If anyreal estate in the condominium is to be sold following termination, title tothat real estate, upon termination, vests in the association as trustee for theholders of all interests in the units. Thereafter, the association has allpowers necessary and appropriate to effect the sale. Until the sale has beenconcluded and the proceeds thereof distributed, the association continues inexistence with all powers it had before termination. Proceeds of the sale mustbe distributed to unit owners and lienholders as their interests may appear, inproportion to the respective interests of unit owners as provided in subsection(h). Unless otherwise specified in the termination agreement, as long as theassociation holds title to the real estate, each unit owner and his successorsin interest have an exclusive right to occupancy of the portion of the realestate that formerly constituted his unit. During the period of that occupancy,each unit owner and his successors in interest remain liable for allassessments and other obligations imposed on unit owners by this Chapter or thedeclaration.
(f) If the real estate constituting the condominium is not tobe sold following termination, title to the common elements and, in acondominium containing only units having horizontal boundaries described in thedeclaration, title to all the real estate in the condominium, vests in the unitowners upon termination as tenants in common in proportion to their respectiveinterests as provided in subsection (h), and liens on the units shiftaccordingly. While the tenancy in common exists, each unit owner and hissuccessors in interest have an exclusive right to occupancy of the portion ofthe real estate that formerly constituted his unit.
(g) Following termination of the condominium, the proceeds ofany sale of real estate, together with the assets of the association, are heldby the association as trustee for unit owners and holders of liens on the unitsas their interests may appear. Following termination, creditors of theassociation holding liens on the units, which were recorded before termination,may enforce those liens in the same manner as any lienholder. All othercreditors of the association are to be treated as if they had perfected lienson the units immediately before termination.
(h) The respective interests of unit owners referred to in subsections(e), (f) and (g) are as follows:
(1) Except as provided in paragraph (2), the respectiveinterests of unit owners are the fair market value of their units, limitedcommon elements, and common element interests immediately before thetermination, as determined by one or more independent appraisers selected bythe association. The decision of the independent appraisers shall bedistributed to the unit owners and becomes final unless disapproved within 30days after distribution by unit owners of units to which twenty‑fivepercent (25%) of the votes in the association are allocated. The proportion ofany unit owner's interest to that of all unit owners is determined by dividingthe fair market value of that unit owner's unit and common element interest bythe total fair market values of all the units and common elements.
(2) If any unit or any limited common element is destroyed tothe extent that an appraisal of the fair market value thereof prior todestruction cannot be made, the interests of all unit owners are theirrespective common element interests immediately before the termination.
(i) Except as provided in subsection (j), foreclosure orenforcement of a lien or encumbrance against the entire condominium does not ofitself terminate the condominium, and foreclosure or enforcement of a lien orencumbrance against a portion of the condominium, other than withdrawable realestate, does not withdraw that portion from the condominium. Foreclosure orenforcement of a lien or encumbrance against withdrawable real estate does notof itself withdraw that real estate from the condominium, but the person taking title thereto has the right to require from the association, uponrequest, an amendment excluding the real estate from the condominium.
(j) If a lien or encumbrance against a portion of the realestate comprising the condominium has priority over the declaration, and thelien or encumbrance has not been released, the parties foreclosing the lien orencumbrance may upon foreclosure, record an instrument excluding the realestate subject to that lien or encumbrance from the condominium. (1985 (Reg. Sess., 1986), c. 877, s. 1.)
(a) Except in the case of a taking of all the units by eminentdomain (G.S. 47C‑1‑107), a condominium may be terminated only byagreement of unit owners of units to which at least eighty percent (80%) of thevotes in the association are allocated, or any larger percentage thedeclaration specifies. The declaration may specify a smaller percentage only ifall of the units in the condominium are restricted exclusively tononresidential uses.
(b) An agreement to terminate must be evidenced by the executionof a termination agreement, or ratifications thereof, in the same manner as adeed, by the requisite number of unit owners. The termination agreement mustspecify a date after which the agreement will be void unless recorded beforethat date. A termination agreement and all ratifications thereof must berecorded in every county in which a portion of the condominium is situated, andis effective only upon recordation.
(c) In the case of a condominium containing only units havinghorizontal boundaries described in the declaration, a termination agreement mayprovide that all the common elements and units of the condominium shall be soldfollowing termination. If, pursuant to the agreement, any real estate in thecondominium is to be sold following termination, the termination agreement mustset forth the minimum terms of the sale.
(d) In the case of a condominium containing any units not havinghorizontal boundaries described in the declaration, a termination agreement mayprovide for sale of the common elements, but may not require that the units besold following termination, unless the declaration as originally recordedprovided otherwise or unless all the unit owners consent to the sale.
(e) The association, on behalf of the unit owners, may contractfor the sale of real estate in the condominium, but the contract is not bindingon the unit owners until approved pursuant to subsections (a) and (b). If anyreal estate in the condominium is to be sold following termination, title tothat real estate, upon termination, vests in the association as trustee for theholders of all interests in the units. Thereafter, the association has allpowers necessary and appropriate to effect the sale. Until the sale has beenconcluded and the proceeds thereof distributed, the association continues inexistence with all powers it had before termination. Proceeds of the sale mustbe distributed to unit owners and lienholders as their interests may appear, inproportion to the respective interests of unit owners as provided in subsection(h). Unless otherwise specified in the termination agreement, as long as theassociation holds title to the real estate, each unit owner and his successorsin interest have an exclusive right to occupancy of the portion of the realestate that formerly constituted his unit. During the period of that occupancy,each unit owner and his successors in interest remain liable for allassessments and other obligations imposed on unit owners by this Chapter or thedeclaration.
(f) If the real estate constituting the condominium is not tobe sold following termination, title to the common elements and, in acondominium containing only units having horizontal boundaries described in thedeclaration, title to all the real estate in the condominium, vests in the unitowners upon termination as tenants in common in proportion to their respectiveinterests as provided in subsection (h), and liens on the units shiftaccordingly. While the tenancy in common exists, each unit owner and hissuccessors in interest have an exclusive right to occupancy of the portion ofthe real estate that formerly constituted his unit.
(g) Following termination of the condominium, the proceeds ofany sale of real estate, together with the assets of the association, are heldby the association as trustee for unit owners and holders of liens on the unitsas their interests may appear. Following termination, creditors of theassociation holding liens on the units, which were recorded before termination,may enforce those liens in the same manner as any lienholder. All othercreditors of the association are to be treated as if they had perfected lienson the units immediately before termination.
(h) The respective interests of unit owners referred to in subsections(e), (f) and (g) are as follows:
(1) Except as provided in paragraph (2), the respectiveinterests of unit owners are the fair market value of their units, limitedcommon elements, and common element interests immediately before thetermination, as determined by one or more independent appraisers selected bythe association. The decision of the independent appraisers shall bedistributed to the unit owners and becomes final unless disapproved within 30days after distribution by unit owners of units to which twenty‑fivepercent (25%) of the votes in the association are allocated. The proportion ofany unit owner's interest to that of all unit owners is determined by dividingthe fair market value of that unit owner's unit and common element interest bythe total fair market values of all the units and common elements.
(2) If any unit or any limited common element is destroyed tothe extent that an appraisal of the fair market value thereof prior todestruction cannot be made, the interests of all unit owners are theirrespective common element interests immediately before the termination.
(i) Except as provided in subsection (j), foreclosure orenforcement of a lien or encumbrance against the entire condominium does not ofitself terminate the condominium, and foreclosure or enforcement of a lien orencumbrance against a portion of the condominium, other than withdrawable realestate, does not withdraw that portion from the condominium. Foreclosure orenforcement of a lien or encumbrance against withdrawable real estate does notof itself withdraw that real estate from the condominium, but the person taking title thereto has the right to require from the association, uponrequest, an amendment excluding the real estate from the condominium.
(j) If a lien or encumbrance against a portion of the realestate comprising the condominium has priority over the declaration, and thelien or encumbrance has not been released, the parties foreclosing the lien orencumbrance may upon foreclosure, record an instrument excluding the realestate subject to that lien or encumbrance from the condominium. (1985 (Reg. Sess., 1986), c. 877, s. 1.)
(a) Except in the case of a taking of all the units by eminentdomain (G.S. 47C‑1‑107), a condominium may be terminated only byagreement of unit owners of units to which at least eighty percent (80%) of thevotes in the association are allocated, or any larger percentage thedeclaration specifies. The declaration may specify a smaller percentage only ifall of the units in the condominium are restricted exclusively tononresidential uses.
(b) An agreement to terminate must be evidenced by the executionof a termination agreement, or ratifications thereof, in the same manner as adeed, by the requisite number of unit owners. The termination agreement mustspecify a date after which the agreement will be void unless recorded beforethat date. A termination agreement and all ratifications thereof must berecorded in every county in which a portion of the condominium is situated, andis effective only upon recordation.
(c) In the case of a condominium containing only units havinghorizontal boundaries described in the declaration, a termination agreement mayprovide that all the common elements and units of the condominium shall be soldfollowing termination. If, pursuant to the agreement, any real estate in thecondominium is to be sold following termination, the termination agreement mustset forth the minimum terms of the sale.
(d) In the case of a condominium containing any units not havinghorizontal boundaries described in the declaration, a termination agreement mayprovide for sale of the common elements, but may not require that the units besold following termination, unless the declaration as originally recordedprovided otherwise or unless all the unit owners consent to the sale.
(e) The association, on behalf of the unit owners, may contractfor the sale of real estate in the condominium, but the contract is not bindingon the unit owners until approved pursuant to subsections (a) and (b). If anyreal estate in the condominium is to be sold following termination, title tothat real estate, upon termination, vests in the association as trustee for theholders of all interests in the units. Thereafter, the association has allpowers necessary and appropriate to effect the sale. Until the sale has beenconcluded and the proceeds thereof distributed, the association continues inexistence with all powers it had before termination. Proceeds of the sale mustbe distributed to unit owners and lienholders as their interests may appear, inproportion to the respective interests of unit owners as provided in subsection(h). Unless otherwise specified in the termination agreement, as long as theassociation holds title to the real estate, each unit owner and his successorsin interest have an exclusive right to occupancy of the portion of the realestate that formerly constituted his unit. During the period of that occupancy,each unit owner and his successors in interest remain liable for allassessments and other obligations imposed on unit owners by this Chapter or thedeclaration.
(f) If the real estate constituting the condominium is not tobe sold following termination, title to the common elements and, in acondominium containing only units having horizontal boundaries described in thedeclaration, title to all the real estate in the condominium, vests in the unitowners upon termination as tenants in common in proportion to their respectiveinterests as provided in subsection (h), and liens on the units shiftaccordingly. While the tenancy in common exists, each unit owner and hissuccessors in interest have an exclusive right to occupancy of the portion ofthe real estate that formerly constituted his unit.
(g) Following termination of the condominium, the proceeds ofany sale of real estate, together with the assets of the association, are heldby the association as trustee for unit owners and holders of liens on the unitsas their interests may appear. Following termination, creditors of theassociation holding liens on the units, which were recorded before termination,may enforce those liens in the same manner as any lienholder. All othercreditors of the association are to be treated as if they had perfected lienson the units immediately before termination.
(h) The respective interests of unit owners referred to in subsections(e), (f) and (g) are as follows:
(1) Except as provided in paragraph (2), the respectiveinterests of unit owners are the fair market value of their units, limitedcommon elements, and common element interests immediately before thetermination, as determined by one or more independent appraisers selected bythe association. The decision of the independent appraisers shall bedistributed to the unit owners and becomes final unless disapproved within 30days after distribution by unit owners of units to which twenty‑fivepercent (25%) of the votes in the association are allocated. The proportion ofany unit owner's interest to that of all unit owners is determined by dividingthe fair market value of that unit owner's unit and common element interest bythe total fair market values of all the units and common elements.
(2) If any unit or any limited common element is destroyed tothe extent that an appraisal of the fair market value thereof prior todestruction cannot be made, the interests of all unit owners are theirrespective common element interests immediately before the termination.
(i) Except as provided in subsection (j), foreclosure orenforcement of a lien or encumbrance against the entire condominium does not ofitself terminate the condominium, and foreclosure or enforcement of a lien orencumbrance against a portion of the condominium, other than withdrawable realestate, does not withdraw that portion from the condominium. Foreclosure orenforcement of a lien or encumbrance against withdrawable real estate does notof itself withdraw that real estate from the condominium, but the person taking title thereto has the right to require from the association, uponrequest, an amendment excluding the real estate from the condominium.
(j) If a lien or encumbrance against a portion of the realestate comprising the condominium has priority over the declaration, and thelien or encumbrance has not been released, the parties foreclosing the lien orencumbrance may upon foreclosure, record an instrument excluding the realestate subject to that lien or encumbrance from the condominium. (1985 (Reg. Sess., 1986), c. 877, s. 1.)
