Transfer of Ownership
TRANFERS OF OWNERSHIP OF UNITS. In order to maintain a community of congenial, financially responsible residents, with the objectives of protecting the value of the units, inhibiting transiency, and facilitating the development of a stable quiet community and peace of mind for all residents, the transfer of ownership of a unit shall be subject to the following provisions.
Forms of ownership:
(A) One person. A unit may be owned by one natural person who has qualified and been approved as elsewhere provided herein.
(B) Two or more persons. Co-ownership of units by two or more natural persons is permitted. However, the intent of this provision is to allow flexibility in estate, tax or financial planning, and not to create circumstances where the unit may be used as short-term transient accommodations for multiple families. If the co-owners are other than husband and wife, the Board shall condition its approval upon the designation in writing by the co-owners of one approved natural person as “primary occupant.” The use of the unit by all other persons shall be as though the primary occupant were the only actual owner. Any change in the primary occupant shall be treated as a transfer of ownership by sale or gift, subject to the provisions of Section 14 of the Declaration. No more than one such change will be approved in any twelve (12) month period, except in the case of the death or incapacity of the primary occupant.
(C) Ownership by corporations, partnerships or trusts. A unit may be owned in trust, or by a corporation, partnership or other entity which is not a natural persons, if approved in the manner provided elsewhere herein. The intent of this provision is to allow flexibility in estate, financial or tax planning, and not to create circumstances in which the unit may be used as short-term transient accommodations for several individuals or families. The approval of a transfer to a trustee, or corporation, partnership or other entity as a unit owner shall be conditioned upon trustee, designation in writing by the owner of one natural person to be the “primary occupant.” The use of the unit by other persons shall be as though the primary occupant were the only actual owner. Any change in the primary occupant shall be treated as a transfer of ownership by sale or gift subject to the provisions of Section 14 of the Declaration. No more than one such change will be approved in any twelve (12) month period, except in the case of the death or incapacity of the primary occupant.
(D) Life estate. A unit may be subject to a life estate, ether by operation of law or by a voluntary conveyance approved under Section 14.2 of the Declaration. In that event, the life tenant shall be the only Association member for such unit, and occupancy of the unit shall be as though the life tenant were the only owner. Upon termination of the life estate, the holders of the remainder interest have no occupancy rights unless separately approved by the Association under Section 14.2(B) of the Declaration. The life tenant shall be liable for all assessments and charges against the unit. Any consent or approval required of association members may be given by the life tenant alone, and the consent or approval of the holders of the remainder interest shall not be required. If there is more than one life tenant, they shall be treated as co-owners for the purposes of determining voting and occupancy rights.
Transfers.
(A) Sale or gift. No unit owner may transfer any ownership interest in a unit by sale or gift (including an agreement for deed) without the prior written approval of the Board of Directors.
(B) Devise or inheritance. If any unit owner acquires title by devise or inheritance, his right to occupy or use the unit shall be subject to the approval of the Board of Directors under Section 14.3(A)(2) of the Declaration. Approval shall not be denied to any devisee or heir who was the prior owner’s lawful spouse at the time of death, or was related to the owner by blood or adoption within the first degree.
(C) Other transfers. If any person acquires title in any manner not considered in the foregoing subsections, that person shall have no right to occupy or use the unit before being approved by the Board under the procedures outlined in Section 14.3 of the Declaration.
(D) To facilitate transfers proposed during times when many of the members are not in residence, the Board of Directors may by resolution delegate its approval powers to an ad hoc committee, which shall consist of at least three (3) members. The Chairman of the committee shall be deemed a Vice President, and as such shall be empowered to execute Certificates of Approval on behalf of the Association.
Procedures.
(A) Notice to Association.
(1) Sale or gift. An owner intending to make a sale or gift of his unit or any interest therein shall give to the Board of Directors or its designee written notice of such intention at least thirty (30) days before the intended closing date, together with the name and address of the proposed purchaser or donee, a copy of the executed sales contract, if any, and such other information as the Board may reasonably require.
(2) Device, inheritance or other transfers. The transferee must notify the Board of Directors of his ownership and submit a certified copy of the instrument evidencing his ownership and such other information as the Board may reasonably require. The transferee shall have no occupancy or use rights until and unless approved by the Board, but may sell or lease the unit following the procedures in Section 14 or Section 13 of the Declaration.
(3) Demand. With the notice required in Subsection (A)(1) of the Declaration, the owners or transferee seeking approval of a transfer of ownership may make a written demand that if the transfer is not approved, the Association must furnish an approved alternate purchaser who shall purchase the unit at the same price and upon substantially the same terms as in the disapproved sales contract, or if no contract is involved, for the fair market value of the unit determined as provided below.
(4) Failure to give notice, if no notice is given, the Board of Directors, at its election, may approve or disapprove at the time it learns of a pending or completed transfer. If any owner fails to seek and obtain Association approval prior to completing the sale or other transfer of an interest in a unit, such failure shall create a rebuttable presumption that the seller and the purchaser intentionally violated the covenants of Section 14 of the Declaration, and shall constitute good cause for Association disapproval.
(B) Board action. Within thirty (30) days after receipt of the required notice and all information requested, or not later than sixty (60) days after the notice required by paragraph (A) above is received by the Association, whichever occurs first, the Board shall either approve or disapprove the transfer. Failure to provide the additional information requested by the Association by the sixtieth (60th) day is good cause for disapproval.
(1) Approval. If a transfer is approved, the approval shall be stated in a Certificate of Approval executed by the President or Vice President of the Association in recordable form and delivered to the closing agent. If the Board neither approves nor disapproves within the time limits set forth above, such failure to act shall be deemed the equivalent of approval, and on demand the Board shall issue a Certificate of Approval to the transferee.
(2) Disapproval. A transfer shall not be disapproved unless a majority of the whole Board so votes. If the Board disapproves without good cause, and if the owner has made the demand set forth in Section 1.3(A)(3) of the Declaration, within thirty (30) days after the Board meeting at which the disapproval took place, the Board shall deliver in writing to the owner (hereafter the “seller”) the name of an approved purchaser who will purchase the unit at the same price, and upon substantially the same terms, as in the disapproved sales contract, and to whom the seller will convey by warranty deed, marketable and insurable title to the unit. If no sales contract was involved, or if the buyer challenges the contract price as not being a good faith purchase price, then the purchase price shall be paid in cash, and the price to be paid shall be determined by agreement, or in the absence of agreement, shall be the fair market value determined by the arithmetic average of appraisals by two state-certified residential property appraisers, one selected by the seller and other by the buyer. The cost of the appraisals and all other closing costs in cases where no sales contract is involved shall be shared equally by the buyer and seller, except that the buyer shall pay for his own title insurance, and all costs of mortgage financing. Real property taxes and condominium assessments shall be prorated to the day of the closing and the parties shall bear their own attorney fees, if any. The closing shall take place not longer than sixty (60) days after the date of Board disapproval, or thirty (30) days after determination of fair market value by appraisal, whichever occurs last. Failure or refusal to close in a timely manner by either party shall constitute a breach of contract and shall entitle the other party to seek specific performance or damages.
(3) If the Board fails to deliver the name of an approved purchaser within thirty (30) days as required above, then the transfer to the original proposed purchase shall be deemed approved, despite the Board’s former disapproval, and upon demand a Certificate of Approval shall be issued.
Unapproved transfers. Any sale or transfer which is not approved, or which is disapproved pursuant to the terms of this Declaration, shall be void or voidable unless subsequently approved in writing by the Association.
Fees and deposits related to the sale of units. Whenever herein the Board’s approval is required to allow a sale or other transfer of an interest in a unit, the Association my charge the owner a preset fee for processing the application, such fee not to exceed the maximum amount then allowed by law.
Attached are Four forms Request for Approval to Transfer Unit Title, Certificate of Approval, Certificate of Transfer and Certificate of Key(s) Transfer. A fully executed copy of The Request for Approval to Transfer Unit Title must be received in a timely fashion as detailed in the Declaration. Once received the Board shall either approve or disapprove the request. If approved the Unit Owner must provide the Board with a copy of a fully executed Certificate of Transfer and Certificate of Key(s) Transfer from the Transfer Agent; the transfer is not complete until these documents are received. Requests by Mortgage companies and other agencies cannot be processed until this process is completed.
Application for Approval of Sale or Transfer