33-1228

33-1228. Termination of condominium

A. Except in the case of a taking of all the units by eminent domain, a condominium
may be terminated only by agreement of unit owners of units to which at least eighty per
cent of the votes in the association are allocated, or any larger percentage the
declaration specifies. The declaration may specify a smaller percentage only if all of
the units in the condominium are restricted exclusively to nonresidential uses.

B. An agreement to terminate shall be evidenced by the execution or ratifications
of a termination agreement, in the same manner as a deed, by the requisite number of unit
owners. The termination agreement shall specify a date after which the agreement will be
void unless it is recorded before that date. A termination agreement and all
ratifications of a termination agreement shall be recorded in each county in which a
portion of the condominium is situated and is effective only on recordation.

C. A termination agreement may provide that all the common elements and units of
the condominium shall be sold following termination. If, pursuant to the agreement, any
real estate in the condominium is to be sold following termination, the termination
agreement shall set forth the minimum terms of the sale.

D. The association, on behalf of the unit owners, may contract for the sale of real
estate in the condominium, but the contract is not binding on the unit owners until
approved pursuant to subsections A and B. If any real estate in the condominium is to be
sold following termination, title to that real estate on termination vests in the
association as trustee for the holders of all interest in the units. Thereafter, the
association has all powers necessary and appropriate to effect the sale. Until the sale
has been concluded and the proceeds of the sale distributed, the association continues in
existence with all powers it had before termination. Proceeds of the sale shall be
distributed to unit owners and lienholders as their interests may appear, in proportion
to the respective interests of unit owners as provided in subsection G. Unless otherwise
specified in the termination agreement, as long as the association holds title to the
real estate, each unit owner and his successors in interest have an exclusive right to
occupancy of the portion of the real estate that formerly constituted his unit. During
the period of that occupancy, each unit owner and his successors in interest remain
liable for all assessments and other obligations imposed on unit owners by this chapter
or the declaration.

E. If the real estate constituting the condominium is not to be sold following
termination, title to all the real estate in the condominium vests in the unit owners on
termination as tenants in common in proportion to their respective interests as provided
in subsection G, and liens on the units shift accordingly. While the tenancy in common
exists, each unit owner and his successors in interest have an exclusive right to
occupancy of the portion of the real estate that formerly constituted his unit.

F. Following termination of the condominium, the proceeds of any sale of real
estate, together with the assets of the association, are held by the association as
trustee for unit owners and holders of liens on the units as their interests may
appear. Following termination, creditors of the association holding liens on the units
which were recorded before termination may enforce those liens in the same manner as any
lienholder.

G. The respective interests of unit owners referred to in subsections D, E and F
are as follows:

1. Except as provided in paragraph 2, the respective interests of unit owners are
the fair market values of their units, limited common elements and common element
interests immediately before the termination, as determined by an independent appraiser
selected by the association. The determination of the independent appraiser shall be
distributed to the unit owners and becomes final unless disapproved within thirty days
after distribution by unit owners of units to which fifty per cent of the votes in the
association are allocated. The proportion of any unit owner's interest to that of all
unit owners is determined by dividing the fair market value of that unit owner's unit and
common element interest by the total fair market values of all the units and common
elements.

2. If any unit or any limited common element is destroyed to the extent that an
appraisal of the fair market value of the unit or element before destruction cannot be
made, the interests of all unit owners are their respective common element interests
immediately before the termination.

H. Except as provided in subsection I, foreclosure or enforcement of a lien or
encumbrance against the entire condominium does not of itself terminate the condominium,
and foreclosure or enforcement of a lien or encumbrance against a portion of the
condominium does not withdraw that portion from the condominium. Foreclosure or
enforcement of a lien or encumbrance against withdrawable real estate does not of itself
withdraw that real estate from the condominium, but the person taking title may require
from the association, on request, an amendment excluding the real estate from the
condominium.

I. If a lien or encumbrance against a portion of the real estate comprising the
condominium has priority over the declaration, and the lien or encumbrance has not been
partially released, the parties foreclosing the lien or encumbrance may, on foreclosure,
record an instrument excluding the real estate subject to that lien or encumbrance from
the condominium.

J. The provisions of subsections C through I do not apply if the original
declaration, an amendment to the original declaration recorded before the conveyance of
any unit to an owner other than the declarant or an agreement by all of the unit owners
contain provisions inconsistent with such subsections.