Ala. Code § 35-8A-103

Current through the 2024 Regular Session.

Section 35-8A-103 - Definitions

In the declaration and bylaws, unless specifically provided otherwise or the context otherwise requires, and in this chapter, the following terms are defined as set forth below:

(1) AFFILIATE OF A DECLARANT. Any person who controls, is controlled by, or is under common control with a declarant. 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. 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. Control does not exist if the powers described in this paragraph are held solely as security for an obligation and are not exercised.

(2) ALLOCATED INTERESTS. The undivided interest in the common elements, the common expense liability, and votes in the association allocated to each unit.

(3) ASSOCIATION. The corporation organized under Section 35-8A-301.

(4) COMMON ELEMENTS. All portions of a condominium other than the units, and any other interests in real estate for the benefit of the unit owners which are declared to be subject to the declaration.

(5) COMMON EXPENSES. Expenditures made by or financial liabilities of the association, together with any allocations to reserves.

(6) COMMON EXPENSE LIABILITY. The liability for common expenses allocated to each unit pursuant to Section 35-8A-207.

(7) CONDOMINIUM. Real estate, portions of which are designated for separate ownership and the remainder of which is designated for common ownership solely by the owners of those portions. Real estate is not a condominium unless the undivided interests in the common elements are vested in the unit owners.

(8) CONVERSION BUILDING. A building that at any time before creation of the condominium was occupied wholly or partially by persons other than purchasers and persons who occupy with the consent of purchasers.

(9) DECLARANT. Any person who offers to dispose of an interest in a condominium unit not previously disposed of or who succeeds to any special declarant right.

(10) DECLARATION. Any instrument, however denominated, that creates a condominium, and any amendments to that instrument.

(11) DEVELOPMENT RIGHTS. Any right or combination of rights reserved by a declarant in the declaration to:

(i) add real estate to a condominium;

(ii) create units, common elements, or limited common elements within a condominium;

(iii) subdivide units or convert units into common elements or common elements into units; or

(iv) withdraw real estate from a condominium.

(12) DISPOSE or DISPOSITION. A transfer to a purchaser of title to in a unit, but does not include the transfer or release of a security interest.

(13) BOARD. The body governing the association.

(14) IDENTIFYING NUMBER. A number, letter, or combination thereof that identifies only one unit in a condominium.

(15) LEASEHOLD CONDOMINIUM. A condominium in which all or a portion of the real estate is subject to a lease, the expiration or termination of which will terminate the condominium or reduce its size.

(16) LIMITED COMMON ELEMENTS. A portion of the common elements allocated by the declaration or by operation of Section 35-8A-202(2) or (4) for the exclusive use by one or more but fewer than all of the units.

(17) MASTER ASSOCIATION. An organization described in Section 35-8A-220, whether it is also an association described in Section 35-8A-301.

(18) OFFERING. Any advertisement, inducement, solicitation, or attempt to encourage any person to acquire any interest in a unit, other than as security for an obligation.

(19) PERSON. A natural person, corporation, business trust, estate, trust, partnership, association, joint venture, government, governmental subdivision or agency, or other legal or commercial entity.

(20) PURCHASER. Any person, other than a declarant or a person in the business of selling real estate for his or her own account, who by means of a voluntary transfer acquires a legal or equitable interest in a unit other than:

(i) a leasehold interest (including renewal options) of less than 20 years, or

(ii) as security for an obligation.

(21) REAL ESTATE. 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.

(22) RESIDENTIAL PURPOSES. Use for dwelling or recreational purposes, or both.

(23) SECURITY INTEREST. An interest in real estate 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, vendor's lien, deed of trust, contract for deed, land sales contract, lease intended as security, assignment of lease, rents intended as security, or any similar security device, pledge of an ownership interest in an association, and any other consensual lien or title retention contract intended as security for an obligation.

(24) SPECIAL DECLARANT RIGHTS. Rights reserved for the benefit of a declarant (i) to complete improvements indicated on plats and plans filed with the declaration (Section 35-8A-209); (ii) to exercise any development right (Section 35-8A-210); (iii) to maintain sales offices, management offices, signs advertising the condominium, and models (Section 35-8A-215); (iv) to use easements through the common elements for the purpose of making improvements within the condominium or within real estate which may be added to the condominium (Section 35-8A-216); (v) to make the condominium subject to a master association (Section 35-8A-220); (vi) or to appoint or remove any officer of the association or any master association or any board member during any period of declarant control (Section 35-8A-303(d)).

(25) TIME SHARE. 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 condominium or a specified portion thereof.

(26) UNIT. A physical portion of the condominium designated for separate ownership or occupancy, the boundaries of which are described pursuant to Section 35-8A-205(a)(5).

(27) UNIT OWNER. A person who owns a unit, or the owner of the right to use a unit in a leasehold condominium whose interest expires simultaneously with any interest the expiration or termination of which will remove the unit from the condominium, but does not include a person having an interest in a unit solely as security for an obligation. The declarant is the initial unit owner of any unit created in the condominium.

Ala. Code § 35-8A-103 (1975)

Amended by Act 2018-403,§ 1, eff. 1/1/2019.

Acts 1990, No. 90-551, p. 858, §1-103.