2018 Tennessee Code
Title 66 - Property
Chapter 27 - Multiple Ownership of Property
Part 2 - Tennessee Condominium Act of 2008 -- General Provisions
§ 66-27-203. Definitions for parts 2-5.

Universal Citation: TN Code § 66-27-203 (2018)
  • In the declaration and bylaws, unless specifically provided otherwise or the context otherwise requires, and in this part and parts 3-5 of this chapter:
  • (1)

    • (A) "Affiliate of a declarant" means any person who controls, is controlled by, or is under common control with a declarant;

    • (B) A person "controls" a declarant if the person:

      • (i) Is a general partner, officer, director, manager or managing member, or employer of the declarant;

      • (ii) Directly or indirectly or acting in concert with one (1) or more other persons, or through one (1) or more subsidiaries, owns, controls, holds with power to vote, or holds proxies representing, more than twenty percent (20%) of the voting interest in the declarant; or

      • (iii) Controls in any manner the election of a majority of the directors, managers, or managing members of the declarant;

    • (C) A person "is controlled by" a declarant if the declarant:

      • (i) Is a general partner, officer, director, manager, managing member or employer of the person;

      • (ii) Directly or indirectly or acting in concert with one (1) or more other persons, or through one (1) or more subsidiaries, owns, controls, holds with power to vote, or holds proxies representing, more than twenty percent (20%) of the voting interest in the person; or

      • (iii) Controls in any manner the election of a majority of the directors, managers, or managing members of the person;

    • (D) Control does not exist if the powers described in this subdivision (1) are held solely as security for an obligation and are not exercised;

  • (2) "Allocated interests" means the undivided interest in the common elements, the common expense liability, and votes in the association allocated to each unit;

  • (3) "Association" means the unit owners' association organized under § 66-27-401;

  • (4) "Board of directors" means the body, regardless of name, designated in the declaration to act on behalf of the association;

  • (5) "Common elements" means all portions of a condominium other than the units;

  • (6) "Common expense liability" means the liability for common expenses allocated to each unit pursuant to § 66-27-307;

  • (7) "Common expenses" means actual or anticipated expenditures made by or financial liabilities of the association, together with any allocations to reserves;

  • (8) "Condominium" means real estate, portions of which are designated for separate ownership and the remainder of which is designated for common ownership solely by the owners of those portions by the recording of a declaration pursuant to the terms of this part and parts 3-5 of this chapter. Real estate is not a condominium unless the undivided interests in the common elements are vested in the unit owners pursuant to a declaration recorded under this part and parts 3-5 of this chapter or prior law applicable to the declaration;

  • (9) "Conversion building" means a building that at any time before creation of the condominium was occupied wholly or partially by persons other than purchasers;

  • (10) "Declarant" means any person or group of persons acting in concert who:

    • (A) As part of a common promotional plan, offers to dispose of the person's or group's interest in a unit not previously disposed of, and files a declaration pursuant to this part and parts 3-5 of this chapter; or

    • (B) Reserves or succeeds to any special declarant or development right;

  • (11) "Declaration" means any instruments, however denominated, that create a condominium, and any amendments to those instruments;

  • (12) "Development rights" means any right or combination of rights reserved by a declarant in the declaration:

    • (A) To add real estate to a condominium;

    • (B) To create units, common elements, or limited common elements within a condominium;

    • (C) To allocate limited common elements, other than those described in §§ 66-27-302 and 66-27-304, to specific units;

    • (D) To grant licenses for parties who are not unit owners to use portions of the common elements or limited common elements, subject to an obligation to pay an equitable share of the common expenses attributable to the licensed common elements or limited common elements;

    • (E) To the extent not otherwise permitted as a right held by unit owners as provided in § 66-27-313(a), to subdivide units or convert units into common elements; or

    • (F) To withdraw real estate from a condominium;

  • (13) "Dispose" or "disposition" means a voluntary transfer to a purchaser of any legal or equitable interest in a unit, but does not include the transfer or release of a security interest;

  • (14) "Identifying number" means a symbol, name, or address that identifies only one (1) unit in a condominium;

  • (15) "Leasehold condominium" means a condominium in which all or a portion of the real estate is subject to a lease, the expiration or termination of which will terminate the condominium or reduce its size;

  • (16) "Limited common element" means a portion of the common elements allocated by the declaration or by operation of § 66-27-302(2) or (4) for the exclusive use of one (1) or more, but fewer than all, of the units;

  • (17) "Master association" means an organization described in § 66-27-321, whether or not it is also an association described in § 66-27-401;

  • (18) "Person" means a natural person, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government, governmental subdivision or agency, or other legal or commercial entity;

  • (19) "Purchaser" means any person, other than a declarant, who by means of a contract or voluntary transfer acquires a legal or equitable interest in a unit other than:

    • (A) A leasehold interest, including renewal options, of less than twenty (20) years; or

    • (B) As security for an obligation, or in connection with the enforcement of an obligation;

  • (20) "Real estate" means any leasehold or other estate or interest in, over, or under land, including structures, fixtures, and other improvements and interests that by custom, usage, or law pass with a conveyance of land, though not described in the contract of sale or instrument of conveyance. "Real estate" includes parcels with or without upper or lower boundaries, and spaces that may be filled with air or water;

  • (21) "Residential purposes" means use for dwelling or non-commercial recreational purposes, or both;

  • (22) "Special declarant rights" means rights, reserved for the benefit of a declarant:

    • (A) To complete improvements indicated on plats and plans filed with the declaration pursuant to § 66-27-309;

    • (B) To exercise any development right pursuant to § 66-27-310;

    • (C) To maintain sales offices, management offices, signs advertising the condominium, and models pursuant to § 66-27-315;

    • (D) To use easements through the common elements for the purpose of making improvements within the condominium or within real estate that may be added to the condominium pursuant to § 66-27-316;

    • (E) To make the condominium part of a larger condominium or a planned community pursuant to § 66-27-323;

    • (F) To make the condominium subject to a master association pursuant to § 66-27-321;

    • (G) To appoint or remove any officer of the association or any master association or any member of the board of directors during any period of declarant control pursuant to § 66-27-403(c); or

    • (H) To exercise any other rights reserved to the declarant in the declaration;

  • (23) "Unit" means a physical portion of the condominium designated for separate ownership or occupancy, the boundaries of which are described pursuant to § 66-27-305(a)(4); and

  • (24) "Unit owner" means a declarant or other person who owns a unit, or a lessee of a unit in a leasehold condominium whose lease expires simultaneously with any lease, the expiration or termination of which will remove the unit from the condominium, but does not include a person having an interest in a unit solely as security for an obligation.

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