33-1252. Conveyance or encumbrance of common
elements
A. Portions of the common elements may be conveyed or subjected to a mortgage, deed
of trust or security interest by the association if persons entitled to cast at least
eighty per cent of the votes in the association, or any larger percentage the declaration
specifies, agree to that action in the manner prescribed in subsection B, except that all
the owners of units to which any limited common element is allocated must agree in order
to convey that limited common element or subject it to a mortgage, deed of trust or
security interest. The declaration may specify a smaller percentage only if all of the
units in the condominium are restricted exclusively to nonresidential uses. Proceeds of
the sale or encumbrance of the common elements are an asset of the association.
B. An agreement to convey common elements or subject them to a mortgage, deed of
trust or security interest shall be evidenced by the execution of an agreement, or
ratifications of the agreement, in the same manner as a deed, by the requisite number of
unit owners. The agreement shall specify a date after which the agreement will be void
unless previously recorded. The agreement and all ratifications of the agreement shall
be recorded in each county in which a portion of the condominium is situated and are
effective only on recordation.
C. The association, on behalf of the unit owners, may contract to convey common
elements or subject them to a mortgage, deed of trust or security interest, but the
contract is not enforceable against the association until approved pursuant to
subsections A and B. Thereafter, the association has all powers necessary and
appropriate to effect the conveyance or encumbrance, including the power to execute deeds
or other instruments.
D. Except as permitted in this chapter, any purported conveyance, encumbrance,
judicial sale or other voluntary transfer of common elements is void.
E. A conveyance or encumbrance of common elements pursuant to this section does not
deprive any unit of its rights of access and support.
F. A conveyance or encumbrance of common elements pursuant to this section does not
affect the priority or validity of preexisting encumbrances.
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