§ 103 - Public offering statement; general provisions
§ 1-103. Definitions
In the declaration and bylaws, unless specifically provided otherwise or the context otherwise requires, and in this title:
(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 20 percent 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 20 percent 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 20 percent 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 20 percent of the capital of the person.
(C) Control does not exist if the powers described in this subdivision are held solely as security for an obligation and are not exercised.
(2) "Allocated interests" mean 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 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 3-101 of this title.
(4) "Common elements" mean:
(A) In a condominium, all portions of the common interest community other than the units.
(B) In a planned community, any real estate within a planned community owned or leased by the association, other than a unit.
(5) "Common expenses" mean expenditures made by or financial liabilities of the association and any allocations to reserves.
(6) "Common expense liability" means the liability for common expenses allocated to each unit pursuant to section 2-107 of this title.
(7) "Common interest community" means real estate described in a declaration with respect to which any person, by virtue of the person's ownership of a unit, is obligated to pay real estate taxes on; insurance premiums on; maintenance of; or improvement of any other real estate other than that unit described in the declaration. Ownership of a unit does not include holding a leasehold interest of less than five years in a unit, including renewal options.
(8) "Condominium" means a common interest community in which portions of the real estate are designated for separate ownership and the remainder of the real estate 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 regime created pursuant to chapter 14 of Title 11; a cooperative is not a common interest community for the purposes of this title.
(11) "Dealer" means a person in the business of selling units for his or her own account.
(12) "Declarant" means any person or group of persons acting in concert who:
(A) as a part of a common promotional plan, offers to dispose of the declarant's 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 and any amendments to those instruments.
(14) "Development rights" mean any right or combination of rights reserved by a declarant in the declaration to:
(A) add real estate 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 estate 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 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 estate 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 subdivision 2-102(2) or (4) for the exclusive use of one or more but fewer than all of the units.
(20) "Master association" means an organization described in section 2-120 of this title, whether or not it is also an association described in section 3-101 of this title.
(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, limited liability partnership, business trust, estate, trust, partnership, association, joint venture, government, governmental subdivision or agency, or other legal or commercial entity. In the case of a land trust, "person" means the beneficiary of the trust rather than the trust or trustee.
(23) "Planned community" means a common interest community which is not a condominium or cooperative. A condominium or cooperative may be part of a planned community.
(24) "Purchaser" means any 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 20 years; or
(B) as security for an obligation.
(25) "Real estate" means any leasehold or other estate or interest in, over or under land, including structures, fixtures, and other improvements and interests which 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.
(26) "Residential purposes" mean use for dwelling or recreational purposes, or both.
(27) "Security interest" means an interest in real estate or personal property, created by contract or conveyance, which secures payment or performance of an obligation. "Security interest" 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.
(28) "Special declarant rights" mean rights reserved for the benefit of a declarant to:
(A) complete improvements indicated on plats and plans filed with the declaration as provided in section 2-109 of this title or to complete improvements described in the public offering statement pursuant to subdivision 4-103(a)(2) of this title;
(B) exercise any declarant right pursuant to section 2-110 of this title;
(C) maintain sales offices, management offices, signs advertising the common interest community, and models (section 2-115);
(D) use easements through the common elements for the purpose of making improvements within the common interest community or within real estate which may be added to the common interest community (section 2-116);
(E) make the common interest community subject to a master association (section 2-120);
(F) merge or consolidate a common interest community with another common interest community of the same form of ownership (section 2-121); 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 (section 3-103).
(29) "Time share" means a time share estate as defined by subsection 3619(a) of Title 32.
(30) "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 2-105(a)(5) of this title.
(31) "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. The declarant is the owner of any unit created by the declaration. (Added 1997, No. 104 (Adj. Sess.), § 3, eff. Jan. 1, 1999.)