Bank of America, N.A. v. Evelyn J. Kinslow, as trustee of the Evelyn J. Kinslow Revocable Trust
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REL: 12/07/2012 Notice: T h i s o p i n i o n i s s u b j e c t t o f o r m a l r e v i s i o n b e f o r e p u b l i c a t i o n i n t h e advance s h e e t s o f Southern R e p o r t e r . R e a d e r s a r e r e q u e s t e d t o n o t i f y t h e R e p o r t e r o f D e c i s i o n s , A l a b a m a A p p e l l a t e C o u r t s , 300 D e x t e r A v e n u e , M o n t g o m e r y , A l a b a m a 3 6 1 0 4 - 3 7 4 1 ((334) 2 2 9 - 0 6 4 9 ) , o f a n y t y p o g r a p h i c a l o r o t h e r e r r o r s , i n o r d e r t h a t c o r r e c t i o n s may b e made b e f o r e t h e o p i n i o n i s p r i n t e d i n Southern R e p o r t e r . ALABAMA COURT OF CIVIL APPEALS OCTOBER TERM, 2012-2013 2110632 Bank o f America, N.A. v. E v e l y n J . Kinslow, as t r u s t e e of t h e E v e l y n J . Kinslow Revocable T r u s t Appeal from Baldwin C i r c u i t Court (CV-10-901370) THOMPSON, P r e s i d i n g J u d g e . Bank o f A m e r i c a , N.A. ("Bank o f A m e r i c a " ) , a judgment i n f a v o r o f E v e l y n J . Kinslow, Evelyn Trust J . Kinslow Revocable appeals from as t r u s t e e o f t h e ("Kinslow"). Inthe 2110632 judgment, elements subject the t r i a l court found that certain l i m i t e d common a s s i g n e d t o a s p e c i f i c condominium t o t h e mortgage unit were n o t Bank Of A m e r i c a p o s s e s s e d as t o t h a t unit. The evidence following. i n the record Legacy Beach. The addition t o common contains elements The l i m i t e d amendment condominium 36 such In as t h e " l i m i t e d common 12 s t o r a g e c l o s e t s , a n d 8 c a r r i a g e elements amendment") ("the d e c l a r a t i o n " ) , C o n d o m i n i u m A c t ("the A c t " ) , were included i n an to the declaration as 2 0 8 ( c ) , A l a . Code 1975, w h i c h i s p a r t 1975. the i n Orange residential units. o f t h e complex, common ("the f i r s t indicates complex t h e complex has t h e f o l l o w i n g e l e m e n t s " : 17 b o a t s l i p s , houses. appeal Key i s a condominium complex swimming p o o l , on required by § of 35-8A- o f t h e Alabama U n i f o r m § 35-8A-101 e t s e q . , A l a Code The amendment p r o v i d e d that w o u l d be a p p u r t e n a n t t o t h e u n i t s . l i m i t e d common elements I t a l s o a l l o w e d owners o f u n i t s t o r e a l l o c a t e l i m i t e d common e l e m e n t s b y an amendment t o the declaration, condominium which i s required association. 2 t o be p r o v i d e d to the 2110632 I n December 2003, E l l e n B. M c K i n n e y p u r c h a s e d U n i t 903 i n Legacy Key. Unit The d e e d c o n v e y i n g t h e u n i t t o M c K i n n e y 903, " t o g e t h e r S l i p Number 6." boat s l i p with included S t o r a g e C l o s e t Number 1" a n d " B o a t The d e e d s t a t e d t h a t t h e s t o r a g e c l o s e t and were a p p u r t e n a n c e s t o U n i t 903, i n a c c o r d a n c e with the d e c l a r a t i o n . In July 2007 McKinney and h e r husband refinanced the o r i g i n a l $322,700 l o a n t h a t was u s e d t o p u r c h a s e U n i t 903 a n d obtained a new loan i n t h e amount o f $700,000. Bank o f A m e r i c a was t h e l e n d e r , a n d i t h e l d a m o r t g a g e on U n i t 903 t o secure the loan. The m o r t g a g e document, w h i c h i s r e f e r r e d t o as t h e " S e c u r i t y I n s t r u m e n t " i n t h a t document ("the s e c u r i t y instrument"), defined theproperty with a l e g a l d e s c r i p t i o n of U n i t 903, w h i c h l e g a l d e s c r i p t i o n was a t t a c h e d t o t h e s e c u r i t y instrument. "Together The l e g a l with description included the appropriate common a r e a s a n d f a c i l i t i e s be undivided the statement: interest i n the declared i n [the declaration] to a p p u r t e n a n t t o t h e above d e s c r i b e d unit." The s e c u r i t y instrument a l s o c o n t a i n e d the f o l l o w i n g language r e g a r d i n g the property s u b j e c t t o t h e mortgage: "TOGETHER WITH hereafter erected a l l t h e improvements now o r on the property, and a l l 3 2110632 easements, appurtenances, and f i x t u r e s now o r hereafter a part of the property. A l l replacements and a d d i t i o n s s h a l l a l s o be c o v e r e d b y t h i s S e c u r i t y Instrument. A l l of the foregoing i s r e f e r r e d to i n t h i s S e c u r i t y I n s t r u m e n t as t h e ' P r o p e r t y . ' " S e c t i o n 18 o f t h e s e c u r i t y i n s t r u m e n t the property Property." as The "any l e g a l d e f i n e d an i n t e r e s t i n or b e n e f i c i a l s e c u r i t y instrument interest provided that i n the i f the M c K i n n e y s s o l d o r t r a n s f e r r e d a l l o r any p a r t o f t h e p r o p e r t y w i t h o u t Bank o f A m e r i c a ' s c o n s e n t , t h e n Bank o f A m e r i c a could r e q u i r e immediate repayment o f t h e l o a n i n f u l l . On A p r i l declaration, 3, 2009, M c K i n n e y e x e c u t e d an amendment t o t h e t r a n s f e r r i n g Storage Closet Number S l i p Number 6 f r o m U n i t 903 t o U n i t 101. K i n s l o w o f U n i t 101. 1 and Boat i s t h e owner The r e c o r d does n o t i n c l u d e t h e amount, i f any, K i n s l o w p a i d McKinney f o r t h e r i g h t t o use t h e storage closet and Baldwin boat slip. The amendment was recorded i n the C o u n t y P r o b a t e C o u r t t h e same d a y i t was e x e c u t e d . E i g h t months l a t e r , title-company on" Unit on December 28, 2009, Ted Tessem, a e m p l o y e e who "acted as a g e n t t o a t r a n s a c t i o n 903, e x e c u t e d a s c r i v e n e r ' s a f f i d a v i t r e v i s i n g the l e g a l d e s c r i p t i o n o f U n i t 903 as i t a p p e a r e d i n t h e a t t a c h m e n t to the s e c u r i t y instrument. I n t h e a f f i d a v i t , Tessem s a i d t h e 4 2110632 original s e c u r i t y instrument "contains errors i n the Legal D e s c r i p t i o n " and t h a t t h e r e v i s i o n " s h a l l s e r v e t o c o r r e c t t h e instrument Scrivener referenced error." above which i s incorrect due to a The r e v i s i o n a d d e d t h e f o l l o w i n g l a n g u a g e to the l e g a l d e s c r i p t i o n : "TOGETHER WITH: " S t o r a g e C l o s e t Number 1, w h i c h i s an a p p u r t e n a n c e to t h e above Unit #903 i n accord with the D e c l a r a t i o n o f Condominium a n d Amendments t h e r e t o . " B o a t S l i p Number 6, w h i c h i s an a p p u r t e n a n c e t o t h e above U n i t #903 i n a c c o r d w i t h t h e D e c l a r a t i o n o f Condominium a n d Amendments t h e r e t o . " In i t sbrief scrivener's on appeal, affidavit was Bank of America recorded P r o b a t e C o u r t on December 28, 2009. itself indicates that states that i n the Baldwin the County However, t h e a f f i d a v i t i t was n o t r e c o r d e d u n t i l February 9, 2010. On A u g u s t 2, 2010, K i n s l o w f i l e d an a c t i o n t o q u i e t t o S t o r a g e C l o s e t Number 1 a n d B o a t S l i p Number 6. sought a judgment d e c l a r i n g t h a t the storage title She a l s o t h e amendment r e a l l o c a t i n g c l o s e t a n d b o a t s l i p f r o m U n i t 903 t o U n i t 101 was v a l i d and t h a t t h e s t o r a g e u n i t a n d b o a t s l i p were now f o r t h e 5 2110632 exclusive use o f U n i t 101 a n d were n o t s u b j e c t t o Bank o f A m e r i c a ' s m o r t g a g e on U n i t 903. K i n s l o w a n d Bank o f A m e r i c a e a c h f i l e d p r o p e r l y m o t i o n s f o r a summary j u d g m e n t . f a c t s ; the issues presented supported T h e r e i s no d i s p u t e o v e r t h e a r e c l e a r l y i s s u e s o f law. After c o n s i d e r i n g t h e m o t i o n s , b r i e f s , and arguments o f the p a r t i e s , in an order determined dated that November the storage 15, 2011, t h e t r i a l c l o s e t and boat slip court were n o t a p p u r t e n a n c e s t o U n i t 903, t h e u n i t s u b j e c t t o t h e m o r t g a g e . It also found that those d e s c r i b e d i n t h e mortgage. motion for a summary limited common e l e m e n t s Accordingly, i t granted judgment and asked were n o t Kinslow's her attorney to p r e p a r e a judgment. In t h e judgment, e n t e r e d on November 30, 2 0 1 1 , t h e t r i a l c o u r t f o u n d t h a t t h e e x c l u s i v e u s e o f l i m i t e d common e l e m e n t s like the boat slip appurtenance t o U n i t the mortgage and the storage unit was n o t an 903 s u c h t h a t t h e r i g h t was s u b j e c t t o " i n as much as t h i s right was n o t s e t o u t o r d e s c r i b e d i n t h e m o r t g a g e as a r i g h t b e i n g c o n v e y e d t o Bank o f America." elements Because the declaration allows t o be r e a l l o c a t e d among u n i t s 6 limited common i n t h e condominium 2110632 complex, the trial court said, the exclusive right to use l i m i t e d common e l e m e n t s does n o t " r u n w i t h t h e l a n d " b u t i s a personal right of the unit owner that can be freely r e a l l o c a t e d t o a n o t h e r u n i t owner. In r e a c h i n g v. A s s o c i a t e d Civ. App. quoting i t s c o n c l u s i o n , the t r i a l Gulf 2005), Land Corp., 941 So. court c i t e d 2d 982, 985-86 ( A l a . f o r i t s d e f i n i t i o n o f an a p p u r t e n a n t the f o l l o w i n g from t h a t Miller right, case: " I n o r d e r f o r a c o v e n a n t t o be e n f o r c e d as one t h a t 'runs w i t h t h e l a n d , ' i t must b o t h ( 1 ) have been i n t e n d e d by t h e p a r t i e s c r e a t i n g i t t o run w i t h t h e l a n d and (2) t o u c h and c o n c e r n t h e l a n d . See, e.g., A l l e n v. A x f o r d , 285 A l a . 251, 231 So. 2d 122 ( 1 9 7 0 ) ; S m i t h v. F i r s t Sav. o f L o u i s i a n a , FSA, 575 So. 2d 1033 ( A l a . 1 9 9 1 ) ; P a t t e r s o n v. A t l a n t i c C o a s t L i n e R. Co., 202 A l a . 583, 589, 81 So. 85, 91 (1919) (noting t h a t , i n keeping with the seminal E n g l i s h c a s e known as ' S p e n c e r ' s c a s e ' (5 Coke, 1 6 ) , 'a c o v e n a n t w i l l n o t r u n w i t h t h e l a n d i f i t be m e r e l y c o l l a t e r a l , and d o t h n o t t o u c h o r c o n c e r n t h e t h i n g demised'). I n d i s c u s s i n g t h e s e r e q u i r e m e n t s , we find i t convenient to utilize the following d e f i n i t i o n s s t a t e d i n the Restatement (Third) of P r o p e r t y ( S e r v i t u d e s ) § 1.5 ( 2 0 0 4 ) : " ' ( 1 ) " A p p u r t e n a n t " means t h a t the r i g h t s or o b l i g a t i o n s of a s e r v i t u d e are tied to ownership or occupancy of a p a r t i c u l a r u n i t or p a r c e l of land. The right t o e n j o y m e n t o f an easement or p r o f i t , or to r e c e i v e the performance of a c o v e n a n t t h a t can be h e l d o n l y by t h e owner or o c c u p i e r of a p a r t i c u l a r u n i t or p a r c e l , i s an a p p u r t e n a n t b e n e f i t . A burden t h a t 7 2110632 obligates t h e owner o r o c c u p i e r of a p a r t i c u l a r u n i t or p a r c e l i n that person's capacity as owner or occupier i s an appurtenant burden. " ' ( 2) " I n g r o s s " me a n s t h a t t h e b e n e f i t or burden o f a s e r v i t u d e i s not tied t o ownership or occupancy of a p a r t i c u l a r u n i t or p a r c e l of land. "'(3) "Personal" means that a servitude benefit or burden i s not t r a n s f e r a b l e and does n o t r u n w i t h l a n d . Whether appurtenant or i n gross, a servitude benefit or burden may be personal.' "Turning f i r s t to the requirement that the c o v e n a n t have b e e n i n t e n d e d b y t h e p a r t i e s c r e a t i n g i t t o r u n w i t h t h e l a n d , we o b s e r v e t h a t t h e d e e d f r o m AGLC t o G i l b r e a t h e x p r e s s l y a d d r e s s e s this i s s u e . F i r s t , as t o t h e b u r d e n o f t h e c o v e n a n t , t h e d e e d r e s t r i c t s t h e u s e o f what i s now t h e M i l l e r p r o p e r t y 'by t h e G r a n t e e s , t h e i r h e i r s a n d a s s i g n s . ' F u r t h e r , i t s p e c i f i c a l l y p r o v i d e s t h a t the burdened property ('the s e r v i e n t e s t a t e ' ) shall ' n e v e r be u s e d f o r a t r a i l e r p a r k o r any o t h e r commercial p u r p o s e . ' (Emphasis added.) Even p l a i n e r a n d more t o t h e p o i n t , t h e deed e x p r e s s l y s t a t e s t h a t 'the burden of t h i s r e s t r i c t i v e covenant s h a l l run w i t h s a i d l a n d s and s h a l l be b i n d i n g on t h e g r a n t e e s , t h e i r h e i r s a n d a s s i g n s . ' (Emphasis a d d e d . ) " (Footnote omitted.) The trial court reasoned g i v e s u n i t owners t h e r i g h t use of a l i m i t e d that because the d e c l a r a t i o n to t r a n s f e r the r i g h t common e l e m e n t t o a n o t h e r u n i t owner, use i s "merely c o l l a t e r a l " t o t h e r e a l p r o p e r t y 8 of exclusive that c o v e r e d by t h e 2110632 mortgage and i s n o t t i e d particular The t o ownership or occupancy of a unit. trial court further cited authority f o r the p r o p o s i t i o n t h a t a c o n t e s t over p r o p e r t y r i g h t s i s governed by the deed i n q u e s t i o n . In b r a c k e t e d language, the t r i a l e x t e n d e d t h a t p r o p o s i t i o n t o c o v e r t h e mortgage "Here t h e mortgage objective intent court i n question. t o Bank o f A m e r i c a d i d n o t m a n i f e s t any on the part o f McKinney to transfer or encumber h e r r i g h t s as s e t o u t i n t h e F i r s t Amendment [ t o t h e d e c l a r a t i o n ] c o n c e r n i n g t h e l i m i t e d common e l e m e n t s a s s i g n e d to her u n i t . " favor The t r i a l court t h e n e n t e r e d a judgment i n o f K i n s l o w a n d d e n i e d Bank o f A m e r i c a ' s summary j u d g m e n t . Bank o f A m e r i c a motion for a a p p e a l e d t o o u r supreme court, which t r a n s f e r r e d the appeal t o t h i s court pursuant t o § 1 2 - 2 - 7 ( 6 ) , A l a . Code 1975. Bank finding are of America argues that court erred i n t h a t S t o r a g e C l o s e t Number 1 a n d B o a t S l i p Number 6 not appurtenant t o Unit 903. that the A c t , the Commissioners' declaration, clear the t r i a l that and t h e f i r s t limited common Specifically, i t contends Commentary t o t h e A c t , t h e amendment t o t h e d e c l a r a t i o n make elements 9 c a n be used only in 2110632 conjunction with a unit. I n o t h e r words, Bank of America a s s e r t s t h a t a l i m i t e d common e l e m e n t i s a p p u r t e n a n t t o a u n i t and n o t t o a u n i t Bank owner. of America cites § 35-8A-208 i n support of i t s a s s e r t i o n t h a t t h e l i m i t e d common e l e m e n t s a r e a p p u r t e n a n t t o a unit, owner. rather than That s t a t u t e an e x c l u s i v e right granted to a unit provides: " ( a ) E x c e p t f o r t h e l i m i t e d common e l e m e n t s described i n section 35-8A-202(2) a n d ( 4 ) , t h e d e c l a r a t i o n must s p e c i f y t o w h i c h u n i t o r u n i t s e a c h l i m i t e d common e l e m e n t i s a l l o c a t e d . An a l l o c a t i o n may n o t be a l t e r e d w i t h o u t t h e c o n s e n t o f t h e u n i t owners whose u n i t s a r e a f f e c t e d . "(b) Except as t h e d e c l a r a t i o n otherwise provides, a limited common element may be r e a l l o c a t e d b y an amendment t o t h e d e c l a r a t i o n e x e c u t e d b y t h e u n i t owners b e t w e e n o r among whose units the r e a l l o c a t i o n i s made. The persons e x e c u t i n g t h e amendment s h a l l p r o v i d e i t t o t h e a s s o c i a t i o n , which s h a l l r e c o r d i t and t h e c o s t shall be b o r n e by t h e persons executing the amendment. The amendment s h a l l be r e c o r d e d a n d indexed i n t h e names o f t h e p a r t i e s and t h e condominium. " ( c ) A common e l e m e n t n o t p r e v i o u s l y a l l o c a t e d as a l i m i t e d common e l e m e n t may n o t be so a l l o c a t e d except pursuant t o provisions i n the d e c l a r a t i o n made i n a c c o r d a n c e w i t h s e c t i o n 3 5 - 8 A - 2 0 5 ( a ) ( 7 ) . The a l l o c a t i o n s must be made b y amendments t o t h e declaration." (Emphasis added.) 10 2110632 The are rules this well settled: their natural, i s bound t o that language Tuscaloosa Cnty., rule of ordinary, to Comm'n 589 v. So. statutory mean 2d and given understood Cnty. exactly Deputy 687, what i t says." Sheriffs' 689 Ass'n ( A l a . 1991). construction [ i s ] that of "[T]he where the o f t h e p l a i n l a n g u a g e o f t h e s t a t u t e i s c l e a r , i t must construed according United statute "Words u s e d i n t h e s t a t u t e must be plain, Tuscaloosa be in interpreting a commonly interpret meaning employs and where p l a i n l a n g u a g e i s u s e d a c o u r t meaning, first court to i t s plain language." S e r v . S t a t i o n s , I n c . , 628 So. 2d 501, 504 " P r i n c i p l e s of s t a t u t o r y c o n s t r u c t i o n Ex parte ( A l a . 1993) . i n s t r u c t t h i s Court to i n t e r p r e t t h e p l a i n l a n g u a g e o f a s t a t u t e t o mean e x a c t l y what it s a y s and language t o engage i n j u d i c i a l i n the s t a t u t e So. 2d 532, 535 construction i s ambiguous." only Ex p a r t e i f the Pratt, 815 ( A l a . 2001). H e r e , t h e p l a i n l a n g u a g e § 35-8A-208 makes c l e a r t h a t t h e limited common condominium. declaration elements are appurtenant to a unit in M o r e o v e r , t h e f i r s t amendment t o t h e L e g a c y contemplates that the limited w o u l d be a p p u r t e n a n t t o a s p e c i f i c u n i t . 11 common The f i r s t a Key elements amendment 2110632 i n c l u d e s an e x h i b i t t h a t a l l o c a t e s s p e c i f i c c a r r i a g e houses, storage c l o s e t s , and boat slips to specific storage closets, the f i r s t units. As t o amendment p r o v i d e s : " I n a c c o r d a n c e w i t h § 35-8A-208 ... e a c h s t o r a g e c l o s e t a l l o c a t e d as a L i m i t e d Common E l e m e n t t o a unit designated i n t h i s Amendment f i l e d b y t h e Developer, may be a l l o c a t e d . Each u n i t so designated shall be e n t i t l e d t o an e x c l u s i v e easement f o r t h e u s e a n d e n j o y m e n t o f s a i d s t o r a g e c l o s e t a l l o c a t e d t o t h a t u n i t , b u t such r i g h t s h a l l n o t e n t i t l e owner t o make a n y s t r u c t u r a l c h a n g e s t h e r e o f , n o r use i t f o r any commercial a c t i v i t i e s , nor f o r any o t h e r u s e e x c e p t i n a c c o r d w i t h t h e g u i d e l i n e s p r e p a r e d b y t h e A s s o c i a t i o n a n d amended from time t o time. U n i t owners, i n accordance w i t h § 35-8A-208 ... may r e - a l l o c a t e a s t o r a g e c l o s e t b y an amendment t o t h e D e c l a r a t i o n . " (Emphasis added.) Similarly, as t o t h e b o a t slips, the f i r s t amendment provides: " I n a c c o r d a n c e w i t h S e c t i o n 35-8A-208 ... e a c h B o a t S l i p a l l o c a t e d as a L i m i t e d Common E l e m e n t t o a U n i t d e s i g n a t e d i n t h i s amendment f i l e d b y t h e Developer, may be r e a l l o c a t e d . Each U n i t so designated shall be e n t i t l e d t o an e x c l u s i v e easement f o r t h e u s e a n d e n j o y m e n t o f s a i d B o a t S l i p ( s ) a l l o c a t e d t o t h a t U n i t , b u t such r i g h t s h a l l n o t e n t i t l e an Owner t o c o n s t r u c t a n y t h i n g thereon n o r change any s t r u c t u r a l p a r t t h e r e o f , n o r u s e i t f o r a n y c o m m e r c i a l a c t i v i t i e s o t h e r t h a n a s may be c o n s t r u c t e d o r changed i n a c c o r d w i t h g u i d e l i n e s p r e p a r e d b y t h e A s s o c i a t i o n a n d amended f r o m t i m e t o time. U n i t Owners, i n a c c o r d a n c e w i t h S e c t i o n 3 5 8A-208 ... may r e a l l o c a t e a B o a t Slip b y an amendment t o t h e D e c l a r a t i o n . " 12 2110632 (Emphasis added.) In determining that limited common elements are not appurtenant t o s p e c i f i c u n i t s i n Legacy Key, t h e t r i a l relied on M i l l e r v. A s s o c i a t e d Gulf Land Corp., supra. M i l l e r , t h e i s s u e was w h e t h e r a r e s t r i c t i v e c o v e n a n t in a d e e d was p e r s o n a l land t o a previous purchaser o r whether t h e covenant ran with court In contained of a parcel of the land. This case does n o t i n v o l v e r e s t r i c t i v e c o v e n a n t s w i t h i n a d e e d , h o w e v e r . I n s t e a d , t h e r i g h t s o f L e g a c y K e y u n i t owners a r e g o v e r n e d b y the A c t , the declaration. declaration, and i n stating that appurtenant to in a M i l l e r was amendments to the Because t h e a p p l i c a b l e a u t h o r i t y i s e x p l i c i t and unambiguous application the a i n this unit case, limited common condominium, and t h e t r i a l elements are Miller court's h a s no r e l i a n c e on misplaced. T h e r e i s no d o u b t t h a t t h e p l a i n l a n g u a g e o f b o t h t h e A c t and t h e Legacy Key d e c l a r a t i o n p r o v i d e element i s appurtenant to a unit. that a limited Accordingly, c o u r t e r r e d as a m a t t e r o f l a w i n i t s d e t e r m i n a t i o n boat s l i p and t h e s t o r a g e common the t r i a l that the c l o s e t were n o t a p p u r t e n a n t t o U n i t 903. 13 2110632 With the determination that the l i m i t e d at i s s u e - - t h e boat s l i p and s t o r a g e to McKinney's contention limited issue. we turn now court the t r i a l 1 to erred previously have n o t been Fountains on p o i n t , Robert we limited limited do Hart a t McLean. and "'the including America's those t o t h e terms o f t h e called on t o a d d r e s s this authority a Virginia a t McLean Condominium U n i t Owners A s s o c i a t i o n , 79 V a . C i r . 103 ( 2 0 0 9 ) . Shehadeh, of i n finding that However, i t c i t e s as p e r s u a s i v e exactly Bank appurtenant Bank o f A m e r i c a c o r r e c t l y p o i n t s o u t t h a t A l a b a m a c a s e , Shehadeh v. F o u n t a i n s unit closet are common e l e m e n t s a r e n o t s u b j e c t mortgage. courts that unit, common e l e m e n t s find A l t h o u g h Shehadeh i s n o t i t t o be purchased a instructive. condominium unit In at The d e e d o f c o n v e y a n c e e n c o m p a s s e d t h e common e l e m e n t s a p p u r t e n a n t common e l e m e n t p a r k i n g thereto, s p a c e ( s ) No. O-333 T h e r e i s a d i s t i n c t i o n b e t w e e n "common e l e m e n t s " a n d " l i m i t e d common e l e m e n t s . " The A c t d e f i n e s a common e l e m e n t as " [ a ] l l p o r t i o n s o f a c o n d o m i n i u m o t h e r t h a n t h e u n i t s . " § 35-8A-103(4). Common e l e m e n t s i n c l u d e t h i n g s l i k e swimming p o o l s , b a r b e q u e a r e a s , e t c . A l i m i t e d common e l e m e n t i s d e f i n e d as a p o r t i o n o f t h e common e l e m e n t s a l l o c a t e d b y t h e d e c l a r a t i o n o r an amendment t o t h e d e c l a r a t i o n " f o r t h e e x c l u s i v e u s e o f one o r more b u t f e w e r t h a n a l l o f t h e r e s i d e n t s . " § 3 5 - 8 A - 1 0 3 ( 1 6 ) . L i m i t e d common e l e m e n t s i n c l u d e things l i k e assigned parking spaces, boat s l i p s , storage units,etc. 1 14 2110632 and O-332 e s t a b l i s h e d been p r o p e r l y to by condominium recorded. Samuel L. W h i t e , America states instruments'" that had I d . Hart then conveyed t h e p r o p e r t y P.C. The d e e d o f t r u s t , w h i c h Bank o f i n i t s b r i e f i s the equivalent o f a mortgage, u s e d t h e same l a n g u a g e a s t h e d e e d c o n v e y i n g t h e p r o p e r t y t o H a r t , w h i c h i n c l u d e d r e f e r e n c e s t o t h e l i m i t e d common e l e m e n t s a p p u r t e n a n t t o t h e u n i t a n d s p e c i f y i n g t h e two p a r k i n g appurtenant to the u n i t . the exclusive subject right I d . The V i r g i n i a c o u r t spaces held t o u s e l i m i t e d common e l e m e n t s that c a n be t o a mortgage. I n t h i s c a s e , however, u n l i k e t h e p a r k i n g spaces involved i n Shehadeh, t h e b o a t s l i p a n d t h e s t o r a g e c l o s e t a s s i g n e d t o McKinney's the unit Unit description 903--were n o t s p e c i f i c a l l y of the property subject T h e r e f o r e , we must d e t e r m i n e w h e t h e r included i n t o t h e mortgage. the f a i l u r e to include t h e l i m i t e d common e l e m e n t s i n t h e d e s c r i p t i o n o f t h e p r o p e r t y e x c l u d e s them f r o m t h e p r o p e r t y s u b j e c t Section 35-8A-204 sets forth what t o t h e mortgage. constitutes l e g a l description of a s p e c i f i c unit i n a a condominium: "A d e s c r i p t i o n o f a u n i t w h i c h s e t s f o r t h t h e name o f t h e condominium, t h e r e c o r d i n g d a t a f o r t h e d e c l a r a t i o n , t h e c o u n t y i n w h i c h t h e condominium i s l o c a t e d , a n d t h e i d e n t i f y i n g number o f t h e u n i t , i s 15 valid 2110632 a s u f f i c i e n t l e g a l d e s c r i p t i o n o f t h a t u n i t and a l l r i g h t s , o b l i g a t i o n s , and i n t e r e s t s a p p u r t e n a n t t o t h a t u n i t w h i c h were c r e a t e d b y t h e d e c l a r a t i o n o r bylaws." (Emphasis 204 added.) The C o m m i s s i o n e r s ' Commentary t o § 35-8A- states: " 1 . The i n t e n t o f t h i s s e c t i o n i s t h a t no d e s c r i p t i o n o f a u n i t i n a deed, l e a s e , deed o f t r u s t , m o r t g a g e , o r any o t h e r i n s t r u m e n t o r document s h a l l be s u b j e c t t o c h a l l e n g e f o r f a i l u r e t o meet any common l a w o r o t h e r r e q u i r e m e n t s so l o n g a s t h e r e q u i r e m e n t s o f t h i s s e c t i o n a r e s a t i s f i e d , and so l o n g as t h e d e c l a r a t i o n i t s e l f , t o g e t h e r w i t h t h e p l a t s and p l a n s which a r e a p a r t o f t h e d e c l a r a t i o n , provides a l e g a l l y s u f f i c i e n t description. "2. The l a s t s e n t e n c e makes c l e a r t h a t an instrument which does meet those requirements includes a l l i n t e r e s t appurtenant t o the u n i t . As a r e s u l t , i t w i l l n o t be n e c e s s a r y u n d e r t h i s A c t t o c o n t i n u e t h e p r a c t i c e , common i n some j u r i s d i c t i o n s , of d e s c r i b i n g t h e common e l e m e n t interests, or l i m i t e d common e l e m e n t s , t h a t a r e a p p u r t e n a n t t o a u n i t i n the instrument conveying t i t l e to that unit." (Emphasis added.) B e c a u s e we have c o n c l u d e d are that l i m i t e d common elements a p p u r t e n a n t t o a s p e c i f i c u n i t , we a l s o c o n c l u d e t h a t a n y description meeting sufficient to "appurtenant" mortgage. encompass t o that The the requirements unit mortgage the within that 16 of limited § 35-8A-204 i s common elements the property subject to a Bank of America held on 2110632 McKinney's u n i t d e f i n e d t h e p r o p e r t y s u b j e c t t o t h e mortgage as f o l l o w s : " U n i t 903 o f L e g a c y K e y , a c o n d o m i n i u m , l o c a t e d i n B a l d w i n C o u n t y , A l a b a m a a c c o r d i n g t o t h a t c e r t ca i n Declaration o f Condominium of Legacy Key, a condominium, t o g e t h e r w i t h a l l e x h i b i t s a t t a c h e d thereto, i n c l u d i n g t h e By-Laws o f Legacy Key Condominium A s s o c i a t i o n , I n c . , d a t e d November 14, 2003, a n d r e c o r d e d a t I n s t r u m e n t # 772977, o f t h e r e c o r d s i n t h e O f f i c e o f t h e Judge o f P r o b a t e o f Baldwin County, Alabama. Together with the a p p r o p r i a t e u n d i v i d e d i n t e r e s t i n t h e common a r e a s and f a c i l i t i e s d e c l a r e d i n s a i d D e c l a r a t i o n t o be a p p u r t e n a n t t o t h e above d e s c r i b e d u n i t . " T h a t d e s c r i p t i o n s e t s f o r t h t h e name o f t h e c o n d o m i n i u m , t h e recording data condominium unit. i s located, and t h e i d e n t i f y i n g number of the A t t h e t i m e t h e m o r t g a g e was c r e a t e d , t h e b o a t s l i p a n d storage the f o r the d e c l a r a t i o n , the county i n which the c l o s e t a t i s s u e were legal mortgage assigned d e s c r i p t i o n of u n i t met t h e r e q u i r e m e n t s common e l e m e n t s a s s i g n e d and t h e s t o r a g e to Unit 903 i n c l u d e d the l i m i t e d t o U n i t 903, i n c l u d i n g t h e b o a t s l i p c l o s e t , were Therefore, Because i n McKinney's o f § 35-8A-204, also subject e v e n t h o u g h t h e y were n o t s p e c i f i c a l l y description. 903. the t r i a l t o t h e mortgage, included i n the legal court also erred as a m a t t e r o f l a w i n f i n d i n g t h a t t h e l i m i t e d common e l e m e n t s were not s u b j e c t t o t h e mortgage. Because o f our h o l d i n g s 17 i n this 2110632 c a s e , we p r e t e r m i t d i s c u s s i o n o f t h e o t h e r i s s u e s t h a t Bank o f A m e r i c a h a s r a i s e d on For reversed, the reasons a n d we appeal. set remand forth t h e cause above, the judgment i s to the t r i a l further proceedings consistent with t h i s court f o r opinion. REVERSED AND REMANDED. Pittman, B r y a n , Thomas, a n d Moore, J J . , c o n c u r . 18
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