UNIFORM CONDOMINIUM ACT GENERAL …

1 1 UNIFORM CONDOMINIUM ACTARTICLE 1 GENERAL PROVISIONSS ection1-101. [Short Title].1-102. [Applicability].1-103. [Definitions].1-104. [Variation by agreement ].1-105. [Separate Titles and Taxation].1-106. [Applicability of Local Ordinances, Regulations, and Building Codes].1-107. [Eminent Domain].1-108. [Supplemental GENERAL Principles of Law Applicable].1-109. [Construction Against Implicit Repeal].1-110. [Uniformity of Application and Construction].1-111. [Severability].1-112. [Unconscionable agreement or Term of Contract].1-113. [Obligation of Good Faith].1-114. [Remedies to be Liberally Administered].ARTICLE 2 CREATION, ALTERATION, AND TERMINATION OF CONDOMINIUMS2-101. [Creation of CONDOMINIUM ].2-102. [Unit Boundaries].2-103. [Construction and Validity of Declaration and Bylaws].2-104. [Description of Units].2-105. [Contents of Declaration].2-106. [Leasehold Condominiums].2-107. [Allocation of Common Element Interests, Votes, and Common Expense Liabilities].2-108. [Limited Common Elements].

2 2-109. [Plats and Plans].2-110. [Exercise of Development Rights].2-111. [Alteration of Units].2-112. [Relocation of Boundaries Between Adjoining Units].2-113. [Subdivision of Units].2-114. [Alternative A] [Easement for Encroachments]. [Alternative B] [Monuments as Boundaries].22-115. [Use for Sales Purposes].2-116. [Easement Rights].2-117. [Amendment of Declaration].2-118. [Termination of CONDOMINIUM ].2-119. [Rights of Secured Lenders].2-120. [Master Associations].2-121. [Merger or Consolidation of Condominiums].ARTICLE 3 MANAGEMENT OF CONDOMINIUM3-101. [Organization of Unit Owners' Association].3-102. [Powers of Unit Owners' Association].3-103. [Executive Board Members and Officers].3-104. [Transfer of Special Declarant Rights].3-105. [Termination of Contracts and Leases of Declarant].3-106. [Bylaws].3-107. [Upkeep of CONDOMINIUM ].3-108. [Meetings].3-109. [Quorums].3-110. [Voting; Proxies].3-111. [Tort and Contract Liability].3-112. [Conveyance or Encumbrance of Common Elements].

3 3-113. [Insurance].3-114. [Surplus Funds].3-115. [Assessments for Common Expenses].3-116. [Lien for Assessments].3-117. [Other Liens Affecting the CONDOMINIUM ].3-118. [Association Records].3-119. [Association as Trustee].ARTICLE 4 PROTECTION OF CONDOMINIUM PURCHASERS4-101. [Applicability; Waiver].4-102. [Liability for Public Offering Statement Requirements].4-103. [Public Offering Statement; GENERAL Provisions].4-104. [Same; Condominiums Subject to Development Rights].4-105. [Same; Time-Shares].4-106. [Same; Condominiums Containing Conversion Buildings].4-107. [Same; CONDOMINIUM Securities].34-108. [Purchaser's Right to Cancel].4-109. [Resales of Units].4-110. [Escrow of Deposits].4-111. [Release of Liens].4-112. [Conversion Buildings].4-113. [Express Warranties of Quality].4-114. [Implied Warranties of Quality].4-115. [Exclusion or Modification of Implied Warranties of Quality].4-116. [Statute of Limitations for Warranties].4-117. [Effect of Violation on Rights of Action; Attorney's Fees].

4 4-118. [Labeling of Promotional Material].4-119. [Declarant's Obligation to Complete and Restore].4-120. [Substantial Completion of Units].[OPTIONAL]ARTICLE 5 ADMINISTRATION AND REGISTRATION OF CONDOMINIUMS5-101. [Administrative Agency].5-102. [Registration Required].5-103. [Application for Registration; Approval of Uncompleted Units].5-104. [Receipt of Application; Order of Registration].5-105. [Cease and Desist Orders].5-106. [Revocation of Registration].5-107. [ GENERAL Powers and Duties of Agency].5-108. [Investigative Powers of Agency].5-109. [Annual Report and Amendments].5-110. [Agency Regulation of Public Offering Statement].4 ARTICLE 1 GENERAL PROVISIONS 1-101. [Short Title]This Act shall be known and may be cited as the UNIFORM CONDOMINIUM Act. 1-102. [Applicability](a) This Act applies to all condominiums created within this State after the effective date of this 1-105 (Separate Titles and Taxation), 1-106 (Applicability of Local Ordinances, Regulations, andBuilding Codes), 1-107 (Eminent Domain), 2-103 (Construction and Validity of Declaration and Bylaws), 2-104(Description of Units), 3-102(a)(1) through (6) and (11) through (16) (Powers of Unit Owners' Association),3-111 (Tort and Contract Liability), 3-116 (Lien for Assessments), 3-118 (Association Records), 4-109 (Resalesof Units), and 4-117 (Effect of Violation on Rights of Action; Attorney's Fees), and Section 1-103 (Definitions),to the extent necessary in construing any of those sections, apply to all condominiums created in this State beforethe effective date of this Act.

5 But those sections apply only with respect to events and circumstances occurringafter the effective date of this Act and do not invalidate existing provisions of the (declaration, bylaws, or platsor plans) of those condominiums.(b) The provisions of (insert reference to all present statutes expressly applicable to condominiums orhorizontal property regimes) do not apply to condominiums created after the effective date of this Act and do notinvalidate any amendment to the (declaration, bylaws, and plats and plans) of any CONDOMINIUM created beforethe effective date of this Act if the amendment would be permitted by this Act. The amendment must be adoptedin conformity with the procedures and requirements specified by those instruments and by (insert reference toall present statutes expressly applicable to condominiums or horizontal property regimes). If the amendmentgrants to any person any rights, powers, or privileges permitted by this Act, all correlative obligations, liabilities,and restrictions in this Act also apply to that person.

6 (c) This Act does not apply to condominiums or units located outside this State, but the public offeringstatement provisions (Sections 4-102 through 4-108) apply to all contracts for the disposition thereof signed inthis State by any party unless exempt under Section 4-101(b) [and the agency regulation provisions under Article5 apply to any offering thereof in this State.]COMMENT1. The question of the extent to which a state statute should apply to particular condominiums involvestwo problems: first, the extent to which the statute should require or permit different results for condominiumscreated before and after the statute becomes effective; and second, whether the statute should impose any or allof its substantive requirements on condominiums located outside the conflicting policies are proposed when considering the applicability of this Act to "old" and "new"5condominiums located in the enacting state. On the one hand, it is desirable, for reasons of uniformity, for theAct to apply to all condominiums located in a particular state, regardless of whether the CONDOMINIUM wascreated before or after adoption of the Act in that state.

7 To the extent that different laws apply within the samestate to different condominiums, confusion results in the minds of both lenders and consumers. Moreover,because of the inadequacies and uncertainties of condominiums created under old law, and because of therequirements placed on declarants and unit owners' associations by this Act which might increase the costs of newcondominiums, different markets might tend to develop for condominiums created before and after adoption ofthe the other hand, to make all provisions of this Act automatically apply to "old" condominiums mightviolate the constitutional prohibition of impairment of contracts. In addition, aside from the constitutional issue,automatic applicability of the entire Act almost certainly would unduly alter the legitimate expectations of somepresent unit owners and , the philosophy of this section reflects a desire to maximize the UNIFORM applicability of theAct to all condominiums in the enacting state, while avoiding the difficulties raised by automatic application ofthe entire Act to pre-existing In carrying out this philosophy with respect to "new" condominiums, the Act applies to allcondominiums "created" within the state after the Act's effective date.

8 This is the effect of the first sentence ofsubsection (a). The first sentence of subsection (b) makes clear that the provisions of old statutes expresslyapplicable to condominiums do not apply to condominiums created after the effective date of this Act."Creation" of a CONDOMINIUM pursuant to this Act occurs upon recordation of a declaration pursuant toSection 2-101; however, the definition of " CONDOMINIUM " in Section 1-103(7) contemplates that de factocondominiums may exist, if the nature of the ownership interest fits the definition, and the Act would apply tosuch a CONDOMINIUM . Any real estate project which includes individually owned units and common elementsowned by the unit owners as tenants in common is therefore subject to the Act if created within the state after theAct's effective date. No intent to subject the CONDOMINIUM to the Act is required, and an express intention to thecontrary would be invalid and The section adopts a novel three-step approach to condominiums created before the effective date ofthe Act.

9 First, certain provisions of the Act automatically apply to "old" condominiums, but only prospectively,and only in a manner which does not invalidate provisions of CONDOMINIUM declarations and bylaws valid under"old" law. Second, "old" law remains applicable to previously created condominiums where not automaticallydisplaced by the Act. Third, owners of "old" condominiums may amend any provisions of their declaration orbylaws, even if the amendment would not be permitted by "old" law, so long as (a) the amendment is adoptedin accordance with the procedure required by "old" law and the existing declaration and bylaws, and (b) thesubstance of the amendment does not violate this Elaboration of the principles described in Comment 3 may be , the second sentence of subsection (a) provides that the enumerated provisions automatically apply6to condominiums created under pre-existing law, even though no action is taken by the unit owners. Many ofthe sections which do apply should measurably increase the ability of the unit owners to effectively manage theassociation, and should help to encourage the marketability of condominiums created under early condominiumstatutes.

10 To avoid possible constitutional challenges, these provisions, as applied to "old" condominiums, applyonly to "events and circumstances occurring after the effective date of this Act"; moreover, the provisions of thisAct are subject to the provisions of the instruments creating the CONDOMINIUM , and this Act does not invalidatethose 1:Under subsection (a), Section 4-109 (Resale Certificates) automatically applies to "old" , unit owners in condominiums established prior to adoption of the Act would be obligated after theAct's effective date to provide resale certificates to future purchasers of units in "old" condominiums. However,the failure of a unit owner to provide such a certificate to a purchaser who acquired the unit before the effectivedate of the Act would not create a cause of action in the purchaser, because the conveyance was an eventoccurring before the effective date of the 2:Under subsection (a), Section 3-118 (Association Records) automatically applies to "old" a result, a unit owners' association of an "old" CONDOMINIUM must maintain certain financial records, and allthe records of the association "shall be made reasonably available for examination by any unit owner and hisauthorized agents", even if the "old" law did not require that records be kept, or access provided.