76-858. Merger or consolidation of condominiums; procedure.

289 words·~1 min read·/ne/chapter-76/76-858

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)Any two or more condominiums, by agreement of the unit owners as provided in subsection

(b)of this section, may be merged or consolidated into a single condominium. In the event of a merger or consolidation, unless the agreement otherwise provides, the resultant condominium is, for all purposes, the legal successor of all of the preexisting condominiums and the operations and activities of all associations of the preexisting condominiums shall be merged or consolidated into a single association which shall hold all powers, rights, obligations, assets, and liabilities of all preexisting associations.

(b)An agreement of two or more condominiums to merge or consolidate pursuant to subsection

(a)of this section must be evidenced by an agreement prepared, executed, recorded, and certified by the president of the association of each of the preexisting condominiums following approval by owners of units to which are allocated the percentage of votes in each condominium required to terminate that condominium. Any such agreement must be recorded in every county in which a portion of the condominium is located and is not effective until recorded.

(c)Every merger or consolidation agreement must provide for the reallocation of the allocated interests in the new association among the units of the resultant condominium either

(i)by stating the reallocations or the formulas upon which they are based or

(ii)by stating the percentage of overall allocated interests of the new condominium which are allocated to all of the units comprising each of the preexisting condominiums, and providing that the portion of the percentages allocated to each unit formerly comprising a part of the preexisting condominium must be equal to the percentages of allocated interests allocated to that unit by the declaration of the preexisting condominium.