Removal of property
Sec. 16. (a) All of the co-owners may remove a property from this
article by a recorded removal instrument if the holders of all liens
affecting any of the condominium units:
(1) consent in a recorded instrument to the removal; or
(2) agree in a recorded instrument that their liens be transferred
to the percentage of the undivided interest of the condominium
unit owner in the property as provided in this section.
(b) If it is determined under section 10 of this chapter that all of
the buildings containing condominium units have been totally
destroyed:
(1) the property is considered removed from this article; and
(2) an instrument reciting the removal under section 10 of this
chapter shall be recorded and executed by the association of
co-owners.
(c) At the time of recording under subsection (b)(2), the property
is removed from this article.
(d) Upon removal of the property from this article, the property is
considered to be owned in common by the condominium unit
owners. The undivided interest in the property owned in common
that appertains to each condominium unit owner is the percentage of
undivided interest previously owned by the owner in the common
areas and facilities.
(e) Under the circumstances described in subsection (a) or in
subsections (b) through (d), the property is subject to an action for
partition at the suit of any condominium unit owner, in which event
the net proceeds of sale, together with the net proceeds of the
insurance on the property, if any:
(1) are considered as one (1) fund; and
(2) are divided among all the condominium unit owners in a
percentage equal to the percentage of undivided interest owned
by each owner in the property, after first paying out of the
respective shares of the condominium unit owners, to the extent
sufficient for the purpose, all liens on the undivided interest in
the property owned by each condominium unit owner.
(f) A removal under this section does not bar the subsequent
resubmission of the property to this article.
As added by P.L.2-2002, SEC.10.
Last modified: May 24, 2006