Chapter 6 - § 6.16 • CONVEYANCE OF COMMON ELEMENTS

• Jurisdiction: Colorado

§ 6.16 • CONVEYANCE OF COMMON ELEMENTS

The CCIOA allows the association to convey portions of the common elements.⁴⁶⁸ In a condominium or planned community, the association may convey portions of the common elements if those entitled to cast at least 67 percent of the votes in the association — including 67% of the votes allocated to units not owned by a declarant — or any larger percentage the declaration specifies agree to the conveyance.⁴⁶⁹ Proceeds of the sale become an asset of the association. In a cooperative, the association may convey part of the cooperative if those entitled to cast at least 67 percent of the votes in the association — including 67 percent of the votes allocated to units not owned by a declarant — or any larger percentage the declaration specifies agree to the conveyance.⁴⁷⁰ However, in a cooperative, if fewer than all of the units or limited common elements are to be conveyed, then all owners of those units, or the units to which those limited common elements are allocated, must agree. Again, the proceeds of the sale become an asset of the association.

The association must execute an agreement to convey common elements in a condominium or planned community, or any part of a cooperative, in the same manner as a deed, and the association must specify a date after which the agreement will be void unless approved by the requisite percentage of owners.⁴⁷¹ While the language of the CCIOA requires execution by "the association," if the requisite number of unit owners approves a sale, the CCIOA also requires the approval to be executed as a written agreement demonstrating the association has authority to enter the contract.⁴⁷²

While the association may contract to convey an interest in a common interest community on behalf of the unit owners, such a contract is not enforceable against the association until executed, ratified,⁴⁷³ and approved by the unit owners, after which the association has all powers necessary and appropriate to effect the conveyance, including the power to execute deeds or other instruments.⁴⁷⁴ A purported conveyance,⁴⁷⁵ judicial sale, or other transfer of common elements or any other part of a cooperative is void unless it complies with the CCIOA statute on conveyance.⁴⁷⁶ A conveyance of common elements may not deprive any unit of its rights of ingress and egress of the unit and support of the unit.⁴⁷⁷ Unless the declaration provides otherwise, a conveyance of common elements does not affect the priority or...