33-1244
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33-1244. Transfer of special declarant rights A. A special declarant right created or reserved under this chapter shall not be transferred except by an instrument evidencing the transfer recorded in every county in which any portion of the condominium is located. The instrument is not effective unless executed by the transferee. B. On transfer of any special declarant right, the liability of a transferor declarant is as follows: 1. A transferor is not relieved of any obligation or liability arising before the transfer. 2. If a transferor retains any special declarant right, the transferor is liable for any obligations or liabilities imposed on a declarant by this chapter or by the declaration relating to the retained special declarant rights and arising after the transfer. 3. A transferor has no liability for any act or omission or any breach of a contractual or warranty obligation arising from the exercise of a special declarant right by a successor declarant. C. Unless otherwise provided in a mortgage or deed of trust, in case of foreclosure of a mortgage, tax sale, judicial sale, sale by a trustee under a deed of trust, forfeiture of interest of a purchaser under a contract for conveyance of real property or sale under bankruptcy code or receivership proceedings, of any units owned by a declarant or real estate in a condominum subject to development rights, a person acquiring title to all the real estate being foreclosed or sold succeeds to all special declarant rights related to that real estate held by that declarant whether or not the judgment or instrument conveying title provides for transfer of the special declarant rights. D. The liabilities and obligations of a person who succeeds to special declarant rights are as follows: 1. A successor to any special declarant right, other than a successor described in paragraph 2 of this subsection, is subject to all liabilities and obligations imposed by this chapter or the declaration: (a) On a declarant which relate to his exercise or nonexercise of special declarant rights. (b) On his transferor, other than: (i) Misrepresentations by any previous declarant. (ii) Warranty obligations on improvements made by any previous declarant or made before the condominium was created. (iii) Breach of any fiduciary obligation by any previous declarant or his appointees to the board of directors. (iv) Any liability or obligation imposed on the transferor as a result of the transferor's acts or omissions after the transfer. 2. A successor to special declarant rights under subsection C is subject to liability only for his own acts in the exercise of those special declarant rights. |