Title 25, Property

§ 81-303. Executive board members and officers. (a) The declaration must create an executive board. Except as provided in the declaration, the bylaws, subsection (b) of this section, or other provisions of this chapter, the executive board may act in all instances on behalf of th…

§ 81-304. Transfer of special declarant rights. (a) A special declarant right created or reserved under this chapter may be transferred only by an instrument evidencing the transfer recorded in every county in which any portion of the common interest community is located. The ins…

§ 81-305. Termination of contracts and leases of declarant. Except as provided in § 81-122 of this title, if entered into before the executive board elected by the unit owners pursuant to § 81-303(f) of this title takes office: (i) Any management contract, employment contract, or…

§ 81-306. Bylaws. (a) The bylaws of the association must provide for: (1) The number of members of the executive board and the titles of the officers of the association; (2) Election by the executive board, or if the declaration so requires by the unit owners, of a president, tre…

§ 81-307. Upkeep of common interest community. (a) Except to the extent provided by the declaration, subsection (b) of this section, or § 81-313(h) of this title, the association, through its executive board, is responsible for maintenance, repair, and replacement of the common e…

§ 81-308. Unit owner meetings. A meeting of the association must be held at least once each year. Special meetings of the association may be called by the president, a majority of the executive board, or by unit owners having at least 20 percent, or any lower percentage specified…

§ 81-308A. Executive board meeting. (a) A meeting of the executive board must be held at least quarterly. Special meetings of the executive board may be called by the president or a majority of the executive board. For purposes of this section, “meetings of the executive board” d…

§ 81-309. Quorums. (a) Unless the bylaws provide otherwise, a quorum is present throughout any meeting of the association if: (1) Persons entitled to cast at least 20 percent of the votes in the association are present in person, by proxy or by ballot at the beginning of the meet…

§ 81-310. Voting; proxies. (a) If only 1 of several owners of a unit is present at a meeting of the association, that owner is entitled to cast all the votes allocated to that unit. If more than 1 of the owners is present, the votes allocated to that unit may be cast only in acco…

§ 81-311. Tort and contract liability; tolling of limitation period. (a) A unit owner is not liable, solely by reason of being a unit owner, for an injury or damage arising out of the condition or use of the common elements. Neither the association nor any unit owner except the d…

§ 81-312. Conveyance or encumbrance of common elements. (a) In a condominium or planned community, portions of the common elements may be conveyed or subjected to a security interest by the association if persons entitled to cast at least 80 percent of the votes in the associatio…

§ 81-313. Insurance. (a) Commencing not later than the time of the first conveyance of a unit to a person other than a declarant, the association shall maintain, to the extent reasonably available: (1) Property insurance on the common elements and, in a planned community, also on…

§ 81-314. Surplus funds. Unless otherwise provided in the declaration, any surplus funds of the association remaining after payment of or provision for common expenses and any prepayment of reserves must be paid annually to the unit owners in proportion to their common expense li…

§ 81-315. Assessments for common expenses. (a) (1) Until the association is validly established pursuant to this chapter and makes a common expense assessment, the declarant shall pay all common expenses together, in the case of a condominium or cooperative, with all sums necessa…

§ 81-316. Lien for assessments. (a) The association has a statutory lien on a unit for any assessment levied against that unit or fines imposed against its unit owner. Unless the declaration otherwise provides, fees, charges, late charges, fines, and interest charged pursuant to …

§ 81-317. Other liens. (a) In a condominium or planned community: (1) Except as provided in paragraph (a)(2) of this section, a judgment for money against the association if recorded or docketed, is not a lien on the common elements, but is a lien in favor of the judgment lien ho…

§ 81-318. Association records. (a) The association shall maintain the following records in written form or in another form capable of conversion into written form within a reasonable time: (1) Detailed records of receipts and expenditures affecting the operation and administratio…

§ 81-319. Association as trustee. With respect to a third person dealing with the association in the association’s capacity as a trustee, the existence of trust powers and their proper exercise by the association may be assumed without inquiry. A third person is not bound to inqu…

§ 81-320. Rules. (a) Before adopting or substantially amending any rule, the executive board must notify all unit owners of: (i) its intention to adopt the proposed rule and (ii) a date on which the executive board will convene a meeting to receive comments on them from the unit …

§ 81-321. Litigation involving declarant. (a) An association’s authority under § 81-302(a)(4) of this title to commence and pursue litigation involving the common interest community is subject to the following rules: (1) Before the association commences litigation, arbitration or…

§ 81-323. Removal of members of executive board. Notwithstanding any provision of the declaration or bylaws to the contrary, the unit owners, by a two-thirds vote of all persons present, in person, by proxy or by ballot, and entitled to vote at any meeting of the unit owners at w…

§ 81-324. Adoption of budget. (a) The executive board shall, at least annually, prepare a proposed budget for the common interest community. In a condominium or cooperative, the proposed budget shall include a line item for any required funding of a repair and replacement reserve…

§ 81-325. Service on associations and executive board. A person may bring suit against the association or the executive board as a whole in any cause by service in accordance with the otherwise applicable rules authorizing service on the form of legal entity of the association.76…

§ 81-326. Delaware corporations. Any association that is a Delaware corporation shall also be subject to the Title 8, which shall govern and control to the extent not inconsistent with this chapter.77 Del. Laws, c. 91, § 61;

§ 81-401. Applicability; waiver. (a) This subchapter applies to all units subject to this chapter, except as provided in subsection (b) of this section or as modified or waived by agreement of purchasers of units in a nonresidential common interest community or as to units that a…

§ 81-402. Liability for public offering statement requirements. (a) Except as provided in subsection (b) of this section, a declarant, before offering any interest in a unit to the public, shall prepare a public offering statement conforming to the requirements of §§ 81-403, 81-4…

§ 81-403. Public offering statement; general provisions. (a) Except as provided in subsection (b) of this section, a public offering statement must contain or fully and accurately disclose: (1) The name and principal address of the declarant and of the common interest community, …

§ 81-404. Common interest communities subject to development right. If the declaration provides that a common interest community is subject to any development rights, the public offering statement must disclose, in addition to the information required by § 81-403 of this title: (…

§ 81-405. Time shares. (a) If the declaration provides that ownership or occupancy of any units, is or may be in time shares, the public offering statement shall disclose, in addition to the information required by § 81-403 of this title: (1) The number and identity of units in w…

§ 81-406. Common interest communities containing conversion buildings. (a) The public offering statement of a common interest community containing any conversion building must contain, in addition to the information required by § 81-403 of this title: (1) A statement by the decla…

§ 81-407. Common interest community securities. If an interest in a common interest community is currently registered with the Securities and Exchange Commission of the United States, a declarant satisfies all requirements relating to the preparation of a public offering statemen…

§ 81-408. Purchaser’s right to cancel. (a) A person required to deliver a public offering statement pursuant to § 81-402(c) of this title shall provide a purchaser with a copy of the public offering statement and all amendments thereto before conveyance of the unit, and not later…

§ 81-409. Resales of units. (a) Except in the case of a sale in which delivery of a public offering statement is required, or unless exempt under § 81-401(b) of this title, a unit owner shall furnish to a purchaser not later than the time of the signing of the contract to purchas…

§ 81-410. Escrow of deposits. Any deposit made in connection with the purchase or reservation of a unit from a person required to deliver a public offering statement pursuant to § 81-402(c) of this title must be placed in escrow and held either in this State or in an account desi…

§ 81-411. Release of liens. (a) In the case of a sale of a unit where delivery of a public offering statement is required pursuant to § 81-402(c) of this title, a seller (1) Shall have the subject property released from all liens, except liens on real estate that a declarant has …

§ 81-412. Conversion buildings. (a) A declarant of a common interest community containing conversion buildings, and any dealer who intends to offer units in such a common interest community, shall give each of the residential tenants and any residential subtenant in possession of…

§ 81-413. Express warranties of quality. (a) Express warranties made by a declarant to a purchaser of a unit, if relied upon by the purchaser, are created as follows: (1) Any affirmation of fact or promise in writing which relates to the unit, its use, or rights appurtenant there…

§ 81-414. Implied warranties of quality. (a) A declarant and any dealer warrants that a unit, other than a unit not yet constructed or under construction at the time of contracting, will be in at least as good condition at the earlier of the time of the conveyance or delivery of …

§ 81-415. Exclusion or modification of implied warranties of quality. (a) Except as limited by subsection (b) of this section with respect to a purchaser of a unit that may be used for residential use, implied warranties of quality: (1) May be excluded or modified by agreement of…

§ 81-416. Statute of limitations for warranties. (a) Unless a period of limitation is tolled under § 81-311 of this title or affected by subsection (d) of this section, a judicial proceeding for breach of any obligation arising under § 81-413 or § 81-414 of this title must be com…

§ 81-417. Effect of violations on rights of action; attorneys’ fees. (a) If a declarant or any other person subject to this chapter fails to comply with any of its provisions or any provision of the declaration or bylaws, any person or class of persons adversely affected by the f…

§ 81-418. Labeling of promotional material. No promotional material may be displayed or delivered to prospective purchasers which describes or portrays an improvement that is not in existence unless the description or portrayal of the improvement in the promotional material is co…

§ 81-419. Declarant’s obligation to complete and restore. (a) Except for improvements labeled “NEED NOT BE BUILT,” the declarant shall complete all improvements depicted on any site plan or other graphic representation, including any plats or plans prepared pursuant to § 81-209 o…

§ 81-420. Substantial completion of units. In the case of a sale of a unit for which delivery of a public offering statement is required, a contract of sale may be executed, but no interest in that unit may be conveyed, until the declaration is recorded and the unit is substantia…

§ 81-421. Amendment to public offering statement. Following execution of a contract of sale by a purchaser, the declarant may not amend any required public offering statement without the approval of such purchaser if the amendment would materially affect the rights of such purcha…