The Vermont Statutes Online

Title 27A: Uniform Common Interest Ownership Act (1994)

Article 001: General Provisions

• § 1-101. Short title

  This title shall be known and may be cited as the Vermont Common Interest Ownership Act. (Added 1997, No. 104 (Adj. Sess.), § 3, eff. Jan. 1, 1999.)

• § 1-102. [Reserved.]

• § 1-103. Definitions

  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 (1) 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” means:

  (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” 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 2-107 of this title.

  (7) “Common interest community” means real estate described in a declaration with respect to which a person, by virtue of the person’s ownership of a unit, is obligated to pay for a share of real estate taxes on, insurance premiums, maintenance, or improvement of, or services or other expenses related to common elements, other units, or other real estate other than that unit described in the declaration. The term does not include an arrangement described in section 1-207 of this title. For purposes of this subdivision, 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 11 V.S.A. chapter 14; 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 a person or group of persons acting in concert that:

  (A) as a part of a common promotional plan, offers to dispose of the interest of the person or group of persons 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” means 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 or bylaws, which has the power 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) of this title 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 that 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 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 estate” includes parcels with or without upper or lower boundaries and spaces that may be filled with air or water.

  (26) “Residential purposes” means 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” means 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 that 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);

  (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);

  (H) control any construction, design review, or aesthetic standards committee or process;

  (I) attend meetings of the unit owners and, except during an executive session, the executive board; and

  (J) have access to the records of the association to the same extent as a unit owner.

  (29) “Time share” means a time share estate as defined by 32 V.S.A. § 3619(a).

  (30) “Unit” means a physical portion of the common interest community designated for separate ownership or occupancy.

  (31) “Unit owner” means a declarant or other person that owns a unit.

  (32) “Assessment” means the sum attributable to each unit and due to the association pursuant to the budget adopted under section 3-123 of this title.

  (33) “Association” means the unit owners association.

  (34) “Bylaws” means the instruments, however denominated, that contain the procedures for conduct of the affairs of the association, regardless of the form in which the association is organized, including any amendments to the instruments.

  (35) “Record,” used as a noun, means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.

  (36) “Residential purposes” means use for dwelling or recreational purposes, or both.

  (37) “Rule” means a policy, guideline, restriction, procedure, or regulation of an association, however denominated, which is not set forth in the declaration or bylaws and which governs the conduct of persons or the use or appearance of property. (Added 1997, No. 104 (Adj. Sess.), § 3, eff. Jan. 1, 1999; amended 2009, No. 155 (Adj. Sess.), § 1, eff. Jan. 1, 2012.)

• § 1-104. Variation by agreement

  Except as expressly provided in this title, the effect of the provisions of this title may not be varied by agreement, and rights conferred by this title may not be waived. Except as otherwise provided in section 1-207 of this title, a declarant may not act under a power of attorney or use any other device to evade the limitations or prohibitions of this title or the declaration. (Added 1997, No. 104 (Adj. Sess.), § 3, eff. Jan. 1, 1999; amended 2009, No. 155 (Adj. Sess.), § 2, eff. Jan. 1, 2012.)

• § 1-105. Separate titles and taxation

  (a) In a condominium or planned community:

  (1) if there is any unit owner other than a declarant, each unit that has been created, together with its interest in the common elements, constitutes for all purposes a separate parcel of real estate; and

  (2) if there is any unit owner other than a declarant, each unit shall be separately taxed and assessed, and no separate tax or assessment may be rendered against any common elements for which a declarant has reserved no development rights; provided, however, that if a portion of the common elements is located in a town other than the town in which the unit is located, the town in which the common elements are located may designate that portion of the common elements within its boundaries as a parcel for property tax assessment purposes and may tax each unit owner at an appraisal value pursuant to 32 V.S.A. § 3481.

  (b) Any portion of the common elements for which the declarant has reserved any development right shall be separately taxed and assessed against the declarant, and the declarant alone is liable for payment of those taxes.

  (c) If there is no unit owner other than a declarant, the real estate comprising a common interest community may be taxed and assessed in any manner provided by law. (Added 1997, No. 104 (Adj. Sess.), § 3, eff. Jan. 1, 1999; amended 2011, No. 143 (Adj. Sess.), § 33, eff. May 15, 2012.)

• § 1-106. Local ordinances, regulations, and building codes

  (a) A building code may not impose any requirement upon any structure in a common interest community that it would not impose upon a physically identical development under a different form of ownership.

  (b) No zoning, building codes, subdivision ordinance, or other real property use law, ordinance, or regulation may prohibit the conversion of any building to the common interest community form of ownership.

  (c) Except as provided in subsections (a) and (b) of this section, no provision of this title invalidates or modifies any provision of any zoning, subdivision, building code, or other real estate use law, ordinance, or regulation. (Added 1997, No. 104 (Adj. Sess.), § 3, eff. Jan. 1, 1999.)

• § 1-107. Eminent domain

  (a) If a unit is acquired by eminent domain or if a part of a unit is acquired by eminent domain leaving the unit owner with a remnant that may not practically or lawfully be used for any purpose permitted by the declaration, the award shall include compensation to the unit owner for that unit and its allocated interests, whether or not any common elements are acquired. Upon acquisition, unless the decree provides otherwise, the allocated interests of that unit are automatically reallocated to the remaining units in proportion to the respective allocated interests of those units before the taking, and the association shall promptly prepare, execute, and record an amendment to the declaration reflecting the reallocations. Any remnant of a unit remaining after part of a unit is taken under this subsection is thereafter a common element.

  (b) Except as provided in subsection (a) of this section, if part of a unit is acquired by eminent domain, the award shall compensate the unit owner for the reduction in value of the unit and its interest in the common elements, whether or not any common elements are acquired. Unless the decree provides otherwise, upon acquisition:

  (1) the allocated interests of that unit shall be reduced in proportion to the reduction in the size of the unit or on any other basis specified in the declaration; and

  (2) the portion of the allocated interests divested from the partially acquired unit shall be automatically reallocated to that unit and to the remaining units in proportion to the respective allocated interests of those units before the taking, with the partially acquired unit participating in the reallocation on the basis of its reduced allocated interests.

  (c) If part of the common elements is acquired by eminent domain, the portion of the award attributable to the common elements taken shall be paid to the association. Unless the declaration provides otherwise, any portion of the award attributable to the acquisition of a limited common element shall be equally divided among the owners of the units to which that limited common element was allocated at the time of acquisition.

  (d) The court decree shall be recorded in every municipality in which any portion of the common interest community is located. (Added 1997, No. 104 (Adj. Sess.), § 3, eff. Jan. 1, 1999.)

• § 1-108. General principles of law applicable

  The principles of law and equity, including the law of corporations, any other form of organization authorized by the law of this State, unincorporated associations, the law of real estate, the law of contracts, principal and agent, and eminent domain, supplement the provisions of this title, except to the extent these principles are inconsistent with the title. (Added 1997, No. 104 (Adj. Sess.), § 3, eff. Jan. 1, 1999; amended 2009, No. 155 (Adj. Sess.), § 3, eff. Jan. 1, 2012.)

• § 1-109. Construction against implicit repeal

  This title is a general act intended to create unified coverage of its subject matter, and no part of it shall be construed to be repealed by subsequent legislation if that construction can be reasonably avoided. (Added 1997, No. 104 (Adj. Sess.), § 3, eff. Jan. 1, 1999.)

• § 1-110. Uniformity of application and construction

  This title shall be applied and construed to make uniform the law with respect to the subject of this title among states that enact it. (Added 1997, No. 104 (Adj. Sess.), § 3, eff. Jan. 1, 1999.)

• § 1-111. Severability

  If any provision of this title or the application of it to any person or circumstances is held invalid, the invalidity shall not affect other provisions or applications of this title that can be given effect without the invalid provision or applications; the provisions of this title are severable. (Added 1997, No. 104 (Adj. Sess.), § 3, eff. Jan. 1, 1999.)

• § 1-112. Unconscionable agreement or term of contract

  (a) The court, upon finding as a matter of law that a contract or contract clause was unconscionable at the time the contract was made, may refuse to enforce the contract, enforce the remainder of the contract without the unconscionable clause, or limit the application of any unconscionable clause in order to avoid an unconscionable result.

  (b) Whenever it is claimed or appears to the court that a contract or any clause of the contract is or may be unconscionable, the parties, in order to aid the court in making the determination shall be afforded a reasonable opportunity to present evidence regarding:

  (1) the commercial setting of the negotiations;

  (2) whether a party has knowingly taken advantage of the inability of the other party to reasonably protect his or her interests because of physical or mental infirmity, illiteracy, inability to understand the language of the agreement, or similar factors;

  (3) the effect and purpose of the contract or clause; and

  (4) in the case of a sale, any gross disparity at the time of contracting between the amount charged for the property and the value of the property measured by the price at which similar property was readily obtainable in similar transactions. Such a disparity does not of itself render the contract unconscionable. (Added 1997, No. 104 (Adj. Sess.), § 3, eff. Jan. 1, 1999.)

• § 1-113. Good faith

  Every contract or duty governed by this title imposes an obligation of good faith on all parties in its performance or enforcement. (Added 1997, No. 104 (Adj. Sess.), § 3, eff. Jan. 1, 1999.)

• § 1-114. Remedies to be liberally administered

  (a) The remedies provided by this title shall be liberally administered so that the aggrieved party is placed in the position the aggrieved party would have been if the other party had fully performed. However, consequential, special, or punitive damages shall not be awarded except as specifically provided in this title or pursuant to other laws.

  (b) [Repealed.] (Added 1997, No. 104 (Adj. Sess.), § 3, eff. Jan. 1, 1999; amended 2009, No. 155 (Adj. Sess.), § 4, eff. Jan. 1, 2012.)

• § 1-115. Adjustment of dollar amounts

  (a) From time to time, the dollar amounts specified in section 1-203 of this title shall change as provided in subsections (b) and (c) of this section according to and to the extent of changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers: U.S. City Average, All Items 1967 = 100, compiled by the Bureau of Labor Statistics, U.S. Department of Labor (the “Index”). The Index for December 1990, which was 401, is the Reference Base Index.

  (b) The dollar amount specified in section 1-203 of this title and any amount stated in the declaration pursuant to that section shall change annually on July 1 if the percentage of change, calculated to the nearest whole percentage point, between the Index at the end of the preceding year and the Reference Base Index is 10 percent or more, but:

  (1) the portion of the percentage change in the Index in excess of a multiple of 10 percent shall be disregarded and the dollar amounts shall change only in multiples of 10 percent of the amounts appearing in this title on January 1, 1999;

  (2) the dollar amounts shall not change if the amounts required by this section are those currently in effect pursuant to this title as a result of earlier application of this section; and

  (3) in no event shall the dollar amounts be reduced below the amounts appearing in this title on the date of enactment.

  (c) If the Index is revised after December 1979, the percentage of change pursuant to this section shall be calculated on the basis of the revised Index. If the revision of the Index changes the Reference Base Index, a revised Reference Base Index shall be determined by multiplying the Reference Base Index then applicable by the rebasing factor furnished by the Bureau of Labor Statistics. If the Index is superseded, the Index referred to in this section is the one represented by the Bureau of Labor Statistics as reflecting most accurately changes in the purchasing power of the dollar for consumers. (Added 1997, No. 104 (Adj. Sess.), § 3, eff. Jan. 1, 1999.)

• § 1-116. Relation to Electronic Signatures in Global and National Commerce Act

  This title modifies, limits, and supercedes the federal Electronic Signatures in Global and National Commerce Act, 15 U.S.C. Section 7001 et seq., but does not modify, limit, or supercede Section 101(c) of that act, 15 U.S.C. Section 7001(c), or authorize electronic delivery of any of the notices described in Section 103(b) of that act, 15 U.S.C. Section 7003(b). (Added 2009, No. 155 (Adj. Sess.), § 5, eff. Jan. 1, 2012.)

• § 1-201. New common interest communities

  (a) Except as otherwise provided in subsection (b) of this section and sections 1-203 and 1-204 of this title, this title applies to all condominiums in this State after January 1, 1999 that may be used for residential purposes and to all other common interest communities that contain 12 or more units that may be used for residential purposes and are created within this State after January 1, 1999. The provisions of 27 V.S.A. chapter 15, subchapter 1 shall not apply to common interest communities created after December 31, 1998. Amendments to this title apply to all common interest communities that contain 12 or more units that may be used for residential purposes and are created after January 1, 2011, or are subject to this title by amendment of their declaration, regardless of when the amendment to this title is adopted in this State.

  (b) A mobile home park, as defined in 10 V.S.A. chapter 153, existing before June 30, 1990, shall not be converted through the use of any device, directly or indirectly, into a common interest community pursuant to this title. Any person who offers for transfer ownership interests in a residential condominium unit in a mobile home park shall be subject to the provisions of 27 V.S.A. chapter 15, subchapter 3 and other applicable laws.

  (c) Common interest communities created under this title shall be subject to 27 V.S.A. chapter 15, subchapter 2. (Added 1997, No. 104 (Adj. Sess.), § 3, eff. Jan. 1, 1999; amended 2009, No. 155 (Adj. Sess.), § 6, eff. Jan. 1, 2012.)

• § 1-202. [Reserved.]

• § 1-203. Exception for small projects and limited expense liability planned communities

  (a) If a planned community:

  (1) contains no more than 24 units and is not subject to any development rights; or

  (2) provides in its declaration that the annual average common expense liability of all units restricted to residential purposes, exclusive of optional user fees and any insurance premiums paid by the association, may not exceed $300.00 as adjusted pursuant to section 1-115 of this title, it is subject only to sections 1-105, 1-106, and 1-107 of this title unless the declaration provides that this entire title is applicable.

  (b) The exemption provided in subdivision (a)(2) of this section applies only if:

  (1) the declarant reasonably believes in good faith that the maximum stated assessment will be sufficient to pay the expenses of the planned community; and

  (2) the declarant provides that the assessment may not be increased above the limitation in subdivision (a)(2) of this section during the period of declarant’s control without the consent of all unit owners. (Added 1997, No. 104 (Adj. Sess.), § 3, eff. Jan. 1, 1999; amended 2009, No. 155 (Adj. Sess.), § 7, eff. Jan. 1, 2012.)

• § 1-204. Preexisting common interest communities

  (a)(1) Unless excepted under section 1-203 of this title, the following sections and subdivisions of this title apply to a common interest community created in this State before January 1, 1999: sections 1-103, 1-105, 1-106, 1-107, 2-103, 2-104, and 2-121, subdivisions 3-102(a)(1) through (6) and (11) through (16), and sections 3-111, 3-116, 3-118, 4-109, and 4-117 to the extent necessary to construe the applicable sections. The sections and subdivisions described in this subdivision apply only to events and circumstances occurring after December 31, 1998 and do not invalidate existing provisions of the declarations, bylaws, plats, or plans of those common interest communities.

  (2) Unless excepted under section 1-203 of this title, the following sections of this title apply to a common interest community created in this State before January 1, 1999: sections 1-206 and 2-102, subdivisions 2-117(h) and (i), and sections 2-124, 3-103, 3-108, 3-110, and 3-124. The sections and subdivisions described in this subdivision apply only to events and circumstances occurring after December 31, 2011 and do not invalidate existing provisions of the declarations, bylaws, plats, or plans of those common interest communities.

  (b) If a planned community created within this State before January 1, 1999 contains no more than 24 units and is not subject to development rights, it is subject only to sections 1-105, 1-106, and 1-107 of this title unless the declaration is amended in conformity with applicable law and with the procedures and requirements of the declaration to take advantage of the provisions of section 1-206 of this title, in which case all the sections and subdivisions enumerated in subsection (a) of this section apply to that planned community. (Added 1997, No. 104 (Adj. Sess.), § 3, eff. Jan. 1, 1999; amended 2009, No. 155 (Adj. Sess.), § 8, eff. Jan. 1, 2012; 2011, No. 75 (Adj. Sess.), § 107, eff. March 7, 2012.)

• § 1-205. [Reserved.]

• § 1-206. Amendments to governing instruments

  (a) The declaration, bylaws, or plat and plans of any common interest community created before January 1, 1999 may be amended to achieve any result permitted by this title, regardless of what applicable law provided before this title was enacted.

  (b) Except as otherwise provided in subsections 2-117(i) and (j) of this title, an amendment to the declaration, bylaws, or plats and plans authorized by this section shall be adopted in conformity with any procedures and requirements for amending the instruments specified in those instruments or, if there are none, in conformity with the amendment procedures of this title. If an amendment grants to any person any rights, powers, or privileges permitted by this title, all correlative obligations, liabilities, and restrictions in this title also apply to that person. (Added 1997, No. 104 (Adj. Sess.), § 3, eff. Jan. 1, 1999; amended 2009, No. 155 (Adj. Sess.), § 9, eff. Jan. 1, 2012.)

• § 1-207. Applicability to nonresidential and mixed-use common interest communities

  (a) [Repealed.]

  (b) A nonresidential common interest community is not subject to this title except to the extent the declaration provides that:

  (1) this entire title applies to the community;

  (2) Articles 1 and 2 of this title apply to the community; or

  (3) in the case of a planned community, only sections 1-105, 1-106, and 1-107 of this title apply to the community.

  (c) [Repealed.]

  (d) If this entire title applies to a nonresidential common interest community, the declaration may also require, subject to section 1-112 of this title, that:

  (1) notwithstanding section 3-105 of this title, any management contract, employment contract, lease of recreational or parking areas or facilities, and any other contract or lease between the association and a declarant or an affiliate of a declarant continues in force after the declarant turns over control of the association; and

  (2) notwithstanding section 1-104 of this title, purchasers of units must execute proxies, powers of attorney, or similar devices in favor of the declarant regarding particular matters enumerated in those instruments.

  (e) A common interest community that contains units restricted exclusively to nonresidential purposes and other units that may be used for residential purposes is not subject to this title unless the units that may be used for residential purposes would comprise a common interest community that would be subject to this title in the absence of the nonresidential units or the declaration provides that this title applies as provided in subsection (b) or (d) of this section. (Added 1997, No. 104 (Adj. Sess.), § 3, eff. Jan. 1, 1999; amended 2009, No. 155 (Adj. Sess.), § 10, eff. Jan. 1, 2012.)

• § 1-208. Out-of-state common interest communities

  This title does not apply to a common interest community located outside this State, but sections 4-102 and 4-103, and to the extent applicable, sections 4-104 through 4-106, of this title, apply to a contract for the disposition of a unit in a common interest community signed in this State by any party unless exempt under subsection 4-101(b) of this title. (Added 1997, No. 104 (Adj. Sess.), § 3, eff. Jan. 1, 1999; 2009, No. 155 (Adj. Sess.), § 11, eff. Jan. 1, 2012.)

• § 1-209. Small condominiums; exception; access to mixed funding sources

  Subsection 2-101(b), subdivisions 2-109(b)(2) and (11), subsection 2-109(g), section 2-115, and Article 4 of this title shall not apply to a condominium if the declaration:

  (1) creates fewer than 10 units; and

  (2) restricts ownership of a unit to entities that are controlled by, affiliated with, or managed by the declarant. (Added 2005, No. 116 (Adj. Sess.), § 5, eff. April 26, 2006; amended 2011, No. 52, § 25, eff. May 27, 2011.)

• § 1-210. Other exempt real estate arrangements

  (a) An arrangement between the associations for two or more common interest communities to share the costs of real estate taxes, insurance premiums, services, maintenance or improvements of real estate, or other activities specified in their arrangement or declarations does not create a separate common interest community.

  (b) An arrangement between an association and the owner of real estate that is not part of a common interest community to share the costs of real estate taxes, insurance premiums, services, maintenance or improvements of real estate, or other activities specified in their arrangement does not create a separate common interest community. However, assessments against the units in the common interest community required by the arrangement must be included in the periodic budget for the common interest community, and the arrangement must be disclosed in all public offering statements and resale certificates required by this title. (Added 2009, No. 155 (Adj. Sess.), § 13, eff. Jan. 1, 2012.)

• § 1-211. Covenants; cost-sharing agreements

  A covenant that requires the owners of separately owned parcels of real estate to share costs or other obligations associated with a party wall, driveway, well, or other similar use does not create a common interest community unless the owners otherwise agree. (Added 2009, No. 155 (Adj. Sess.), § 14, eff. Jan. 1, 2012.)