2014 Kentucky Revised Statutes CHAPTER 381 - TITLE TO PROPERTY AND RESTRICTIONS ON USE, OWNERSHIP, AND ALIENATION 381.9185 Conveyance or encumbrance of common elements.
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381.9185 Conveyance or encumbrance of common elements.
(1)
(2)
(3)
(4)
(5)
(6)
Portions of the common elements may be conveyed or subjected to a lien or
security interest by the association if persons entitled to cast at least eighty
percent (80%) of the votes in the association, including eighty percent (80%) of
the votes allocated to units not owned by a declarant, or any larger percentage
the declaration specifies, agree to that action; however, all the owners of units
to which any limited common element is allocated shall agree in order to
convey that limited common element or subject it to a lien or security interest.
The declaration may specify a smaller percentage only if all of the units are
restricted exclusively to nonresidential uses. Proceeds of the sale are an asset
of the association.
An agreement to convey common elements or subject them to a lien or
security interest shall be evidenced by the execution of an agreement, or
ratifications thereof, 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 recorded before that date. The agreement and all ratifications
thereof shall be recorded in every county in which a portion of the
condominium is situated, and shall be effective only upon recordation.
The association, on behalf of the unit owners, may contract to convey common
elements, or subject them to a lien or security interest, but the contract is not
enforceable against the association until approved pursuant to subsections (1)
and (2) of this section. Thereafter, the association has all powers necessary
and appropriate to effect the conveyance or encumbrance, including the power
to execute deeds or other instruments.
Any purported conveyance, encumbrance, judicial sale, or other voluntary
transfer of common elements, unless made pursuant to this section, shall be
void.
A conveyance or encumbrance of common elements pursuant to this section
shall not deprive any unit of its rights of access and support.
Unless the declaration otherwise provides, a conveyance or encumbrance of
common elements pursuant to this section does not affect the priority or validity
of pre-existing encumbrances.
Effective:January 1, 2011
History: Created 2010 Ky. Acts ch. 97, sec. 43, effective January 1, 2011.
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