Sec. 47-202. Definitions.
Sec. 47-202. Definitions. In the declaration and bylaws, unless specifically provided otherwise or the context otherwise requires, and in this chapter:
(1) "Affiliate of a declarant" means any person who controls, is controlled by, or
is under common control with a declarant. (A) A person "controls" a declarant if the
person (i) is a general partner, officer, director, or employer of the declarant, (ii) directly
or indirectly or acting in concert with one or more other persons, or through one or more
subsidiaries, owns, controls, holds with power to vote, or holds proxies representing,
more than twenty per cent of the voting interest in the declarant, (iii) controls in any
manner the election of a majority of the directors of the declarant, or (iv) has contributed
more than twenty per cent of the capital of the declarant. (B) A person "is controlled
by" a declarant if the declarant (i) is a general partner, officer, director, or employer of
the person, (ii) directly or indirectly or acting in concert with one or more other persons,
or through one or more subsidiaries, owns, controls, holds with power to vote, or holds
proxies representing, more than twenty per cent of the voting interest in the person, (iii)
controls in any manner the election of a majority of the directors of the person, or (iv)
has contributed more than twenty per cent of the capital of the person. Control does not
exist if the powers described in this subsection are held solely as security for an obligation
and are not exercised.
(2) "Allocated interests" means the following interests allocated to each unit: (A)
In a condominium, the undivided interest in the common elements, the common expense
liability, and votes in the association; (B) in a cooperative, the common expense liability
and the ownership interest and votes in the association; and (C) in a planned community,
the common expense liability and votes in the association.
(3) "Association" or "unit owners' association" means the unit owners' association
organized under section 47-243.
(4) "Common elements" means (A) in the case of (i) a condominium or cooperative,
all portions of the common interest community other than the units; and (ii) a planned
community, any real property within a planned community owned or leased by the
association, other than a unit, and (B) in all common interest communities, any other
interests in real property for the benefit of unit owners which are subject to the declaration.
(5) "Common expenses" means expenditures made by, or financial liabilities of,
the association, together with any allocations to reserves.
(6) "Common expense liability" means the liability for common expenses allocated
to each unit pursuant to section 47-226.
(7) "Common interest community" means real property described in a declaration
with respect to which a person, by virtue of his ownership of a unit, is obligated to pay
for (A) real property taxes on, (B) insurance premiums on, (C) maintenance of, or (D)
improvement of, any other real property other than that unit described in the declaration.
"Ownership of a unit" includes holding a leasehold interest of forty years or more in a
unit, including renewal options. "Ownership of a unit" does not include the interest
which a resident holds in a mutual housing association, as defined in subsection (b) of
section 8-214f, by virtue of either a state contract for financial assistance or an individual
occupancy agreement. An association of property owners funded solely by voluntary
payments from those owners is not a common interest community.
(8) "Condominium" means a common interest community in which portions of the
real property are designated for separate ownership and the remainder of the real property
is designated for common ownership solely by the owners of those portions. A common
interest community is not a condominium unless the undivided interests in the common
elements are vested in the unit owners.
(9) "Conversion building" means a building that at any time before creation of the
common interest community was occupied wholly or partially by persons other than
purchasers and persons who occupy with the consent of purchasers.
(10) "Cooperative" means a common interest community in which the real property
is owned by an association, each of whose members is entitled by virtue of his ownership
interest in the association to exclusive possession of a unit.
(11) "Dealer" means a person who owns either six or more units, or fifty per cent
or more of all the units, in a common interest community.
(12) "Declarant" means any person or group of persons acting in concert who (A)
as part of a common promotional plan, offers to dispose of his interest in a unit not
previously disposed of or (B) reserves or succeeds to any special declarant right.
(13) "Declaration" means any instruments, however denominated, that create a
common interest community, including any amendments to those instruments.
(14) "Development rights" means any right or combination of rights reserved by a
declarant in the declaration to (A) add real property to a common interest community;
(B) create units, common elements, or limited common elements within a common
interest community; (C) subdivide units or convert units into common elements; or (D)
withdraw real property from a common interest community.
(15) "Dispose" or "disposition" means a voluntary transfer to a purchaser of any
legal or equitable interest in a unit, but the term does not include the transfer or release
of a security interest.
(16) "Executive board" means the body, regardless of name, designated in the declaration to act on behalf of the association.
(17) "Identifying number" means a symbol or address that identifies only one unit
in a common interest community.
(18) "Leasehold common interest community" means a common interest community in which all or a portion of the real property is subject to a lease the expiration or
termination of which will terminate the common interest community or reduce its size.
(19) "Limited common element" means a portion of the common elements allocated
by the declaration or by operation of subsection (2) or (4) of section 47-221 for the
exclusive use of one or more but fewer than all of the units.
(20) "Master association" means an organization described in section 47-239,
whether or not it is also an association described in section 47-243.
(21) "Offer" or "offering" means any advertisement, inducement, solicitation or
attempt to encourage any person to acquire any interest in a unit, other than as security
for an obligation. An advertisement in a newspaper or other periodical of general circulation, or in any broadcast medium to the general public, of a common interest community
not located in this state, is not an offering if the advertisement states that an offering
may be made only in compliance with the law of the jurisdiction in which the common
interest community is located.
(22) "Person" means an individual, corporation, limited liability company, business
trust, estate, trust, partnership, association, joint venture, government, governmental
subdivision or agency, or other legal or commercial entity.
(23) "Planned community" means a common interest community that is not a condominium or a cooperative. A condominium or cooperative may be part of a planned
community.
(24) "Proprietary lease" means an agreement with the association pursuant to which
a member is entitled to exclusive possession of a unit in a cooperative.
(25) "Purchaser" means a person, other than a declarant or a dealer, who by means
of a voluntary transfer acquires a legal or equitable interest in a unit other than (A) a
leasehold interest, including renewal options, of less than twenty years, or (B) as security
for an obligation.
(26) "Real property" 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 property" includes parcels with or without
upper or lower boundaries, and spaces that may be filled with air or water.
(27) "Residential purposes" means use for dwelling or recreational purposes, or
both.
(28) "Security interest" means an interest in real property or personal property,
created by contract or conveyance, which secures payment or performance of an obligation. The term includes a lien created by a mortgage, deed of trust, trust deed, security
deed, contract for deed, land sales contract, lease intended as security, assignment of
lease or rents intended as security, pledge of an ownership interest in an association, and
any other consensual lien or title retention contract intended as security for an obligation.
(29) "Special declarant rights" means rights reserved for the benefit of a declarant
to (A) complete improvements indicated on surveys and plans filed with the declaration
or, in a cooperative, to complete improvements described in the public offering statement
pursuant to subdivision (2) of subsection (a) of section 47-264; (B) exercise any development right; (C) maintain sales offices, management offices, signs advertising the common interest community, and models; (D) use easements through the common elements
for the purpose of making improvements within the common interest community or
within real property which may be added to the common interest community; (E) make
the common interest community subject to a master association; (F) merge or consolidate
a common interest community with another common interest community of the same
form of ownership; or (G) appoint or remove any officer of the association or any master
association or any executive board member during any period of declarant control.
(30) "Time share" means a right to occupy a unit or any of several units during five
or more separated time periods over a period of at least five years, including renewal
options, whether or not coupled with an estate or interest in a common interest community or a specified portion thereof.
(31) "Unit" means a physical portion of the common interest community designated
for separate ownership or occupancy, the boundaries of which are described pursuant
to subdivision (5) of subsection (a) of section 47-224. If a unit in a cooperative is owned
by a unit owner or is sold, conveyed, voluntarily or involuntarily encumbered or otherwise transferred by a unit owner, the interest in that unit which is owned, sold, conveyed,
encumbered or otherwise transferred is the right to possession of that unit under a proprietary lease, coupled with the allocated interests of that unit, and the association's interest
in that unit is not thereby affected.
(32) "Unit owner" means a declarant or other person who owns a unit, or a lessee
of a unit in a leasehold common interest community whose lease expires simultaneously
with any lease the expiration or termination of which will remove the unit from the
common interest community, but does not include a person having an interest in a unit
solely as security for an obligation. In a condominium or planned community, the declarant is the owner of any unit created by the declaration. In a cooperative, the declarant
is treated as the owner of any unit to which allocated interests have been allocated until
that unit has been conveyed to another person.
(P.A. 83-474, S. 3, 96; P.A. 84-472, S. 1, 23; P.A. 91-341, S. 14, 19; P.A. 95-79, S. 170, 189; 95-187, S. 1.)
History: P.A. 84-472 amended Subdiv. (7) to exclude from the definition of a common interest community an association
of property owners funded solely by voluntary payments from those owners, and to increase from 20 to 40 years the
minimum period for holding a leasehold interest in a unit that constitutes "ownership of a unit"; P.A. 91-341 amended
Subdiv. (7) to add provision that "ownership of a unit" does not include the interest which a resident holds in a mutual
housing association by virtue of either a state contract for financial assistance or an individual occupancy agreement; P.A.
95-79 redefined "person" to include a limited liability company, effective May 31, 1995; P.A. 95-187 amended the definition
of "common elements" by redesignating the existing provisions re a condominium or cooperative and re a planned community as Subparas. (A)(i) and (A)(ii), respectively, and adding new Subpara. (B) to include in the definition any other interests
in real property for the benefit of unit owners which are subject to the declaration.
Subdiv. (2):
Cited. 207 C. 441.
Subdiv. (4):
Subpara. (A) cited. 22 CA 497. Cited. 44 CA 107.
Subdiv. (7):
Cited. 207 C. 441.
Cited. 44 CA 107.
Subdiv. (8):
Cited. 237 C. 123.
Cited. 44 CA 107.
Subdiv. (10):
Cited. 237 C. 123.
Subdiv. (19):
Meaning of "use" in this subdiv. 245 C. 1.
Subdiv. (23):
Cited. 237 C. 123.
Subdiv. (26):
Cited. 207 C. 441.
Cited. 22 CA 497.
Subdiv. (31):
Cited. 207 C. 441.