33-1244

33-1244. Transfer of special declarant
rights

A. A special declarant right created or reserved under this chapter shall not be
transferred except by an instrument evidencing the transfer recorded in every county in
which any portion of the condominium is located. The instrument is not effective unless
executed by the transferee.

B. On transfer of any special declarant right, the liability of a transferor
declarant is as follows:

1. A transferor is not relieved of any obligation or liability arising before the
transfer.

2. If a transferor retains any special declarant right, the transferor is liable
for any obligations or liabilities imposed on a declarant by this chapter or by the
declaration relating to the retained special declarant rights and arising after the
transfer.

3. A transferor has no liability for any act or omission or any breach of a
contractual or warranty obligation arising from the exercise of a special declarant right
by a successor declarant.

C. Unless otherwise provided in a mortgage or deed of trust, in case of foreclosure
of a mortgage, tax sale, judicial sale, sale by a trustee under a deed of trust,
forfeiture of interest of a purchaser under a contract for conveyance of real property or
sale under bankruptcy code or receivership proceedings, of any units owned by a declarant
or real estate in a condominum subject to development rights, a person acquiring title to
all the real estate being foreclosed or sold succeeds to all special declarant rights
related to that real estate held by that declarant whether or not the judgment or
instrument conveying title provides for transfer of the special declarant rights.

D. The liabilities and obligations of a person who succeeds to special declarant
rights are as follows:

1. A successor to any special declarant right, other than a successor described in
paragraph 2 of this subsection, is subject to all liabilities and obligations imposed by
this chapter or the declaration:

(a) On a declarant which relate to his exercise or nonexercise of special declarant
rights.

(b) On his transferor, other than:

(i) Misrepresentations by any previous declarant.

(ii) Warranty obligations on improvements made by any previous declarant or made
before the condominium was created.

(iii) Breach of any fiduciary obligation by any previous declarant or his
appointees to the board of directors.

(iv) Any liability or obligation imposed on the transferor as a result of the
transferor's acts or omissions after the transfer.

2. A successor to special declarant rights under subsection C is subject to
liability only for his own acts in the exercise of those special declarant rights.