Condominium unit title insurance (page5)

Examples of these documents include a declaration, by-laws, plats and maps. See JOYCE PALOMAR, TITLE INSURANCE LAW, 9.07 (1997). ' See ALTA Endorsement 4 (Condominium), Appendix A, infra p. 194. The ALTA Condominium Endorsement Form 4 was adopted in New York on September 1, 1993.

8 See ALTA Endorsement 4.1 (Condominium), Appendix B, infra p. 196. Form 4 and Form 4.1 are identical with two exceptions. In those states where the association lien for common charges has been granted a super-priority status, Form 4.1 is used and assures only that the insured interest has priority and that no amount is due or lien is in existence for condominium association charges at the date of the policy.

ALTA Endorsement 4, supra note 7; ALTA Endorsement 4.1, supra note 8.

See, e.g., ALA. CODE 35-8A-401 to -417 (1991); N.C. GEN. STAT. 47C-4101 to -113 (1996). For example, the condominium acts in Alabama and North Carolina each have sections that require offering statements to provide specific information to purchasers. See ALA. CODE 35-8A-403 cmt.; N.C. GEN. STAT. 47C-4-103 cmt. The first comment to each of these sections notes that "[t]he best `consumer protection' that the law can provide to any purchaser is to insure that he has an opportunity to acquire an understanding of the nature of the products which he is purchasing." ALA. CODE 35-8A-403 cmt.; N.C. GEN. STAT. 47C-4-103 cmt. However, there is further explanation that such is "difficult to achieve" in connection with the purchase of condominiums "because of the complex nature of the bundle of rights and obligations which each unit owner obtains." ALA. CODE 35-8A-403 cmt.; N.C. GEN. STAT. 47C-4-103 cmt.

UNIF. CONDOMINIUM ACT (amended 1980), 7 U.L.A. 199 (1997). UNIF. COMMON INTEREST OWNERSHIP ACT, 7 U.L.A. 1 (1997).

See UNIF. CONDOMINIUM ACT 2-105, 7 U.L.A. at 244. See UNIF. CONDOMINIUM ACT 1-103(15), 7 U.L.A. at 214 (defining a "leasehold condominium" as "aa 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").

See UNIF. CONDOMINIUM ACT 2-106 cmt. 3, 7 U.L.A. at 248 (explaining that its "requirements concerning leasehold condominiums . . . are not typically contained in the statutes of most states").

" See Richard J. Wirth, The Uniform Common Interest Ownership Act Nonresidential Use Exemption: When an Out May not Be an Out, 26 REAL PROP. PROB. & TR. J. 885, 886 (1992) (noting that Alaska, Colorado, Connecticut, Nevada, and West Virginia have enacted statutes based on the Act).

UNIF. CONDOMINIUM ACT 2-107, 7 U.L.A. at 250; see also UNIF. COMMON INTEREST OWNERSHIP ACT 2-107(a)(i), 7 U.L.A. at 59 (requiring an allocation in a condominium "a fraction or percentage of undivided interests in the common elements and in the common expenses of the association . . . and a portion of the votes in the association").

UNIF. CONDOMINIUM ACT 2-109, 7 U.L.A. at 256; UNIF. COMMON INTEREST OWNERSHIP ACT 2-109, 7 U.L.A. at 63.

19 See, eg., N.Y. REAL PROP. LAW IW 339-d to -Ij (McKinney 1989 & Supp. 1999). See UNIF. CONDOMINIUM ACT 2-105, 7 U.L.A. at 248 (describing the differences between Alabama subsection (a)(12); New Mexico, omitting subsection (a)(13); North Carolina subsection (a)(5); and Rhode Island subsection (a)(2)); see also UNIF. CONDOMINIUM ACT 2-108, 7 U.L.A. at 250 (explaining the changes made in Alabama subsection (b) and North Carolina subsections (a),(b),and (c)).

it ALTA adp ?: .

22 ALTA Endorsement 4, supra note 7.

UNIF. COMMON INTEREST OWNERSHIP ACT 3-116(b), 7 U.L.A. at 122. 24 N.Y. REAL PROP. LAW 339-z(ii); cf MASS. ANN. LAWS ch. 183A, 21(a)(3) (Law. Co-op. 1996) (stating that by-laws can provide "[lor limitations upon the first mortgages of record or the types or categories thereof which shall have priority').

as UNIF. COMMON INTEREST OWNERSHIP ACT 3-116(b)(ii), 7 U.L.A. at 122. 26 Examples of such services include street maintenance, garbage collection, parks and recreational activities, and a security force. 27 ALTA Endorsement 4.1, supra note 8.

See also N.J. STAT. ANN. 46:8B-21(a) (West 1989 & Supp. 1998) (stating that a "common expense" lien "shall be effective from and after the time of recording in the public records of the county in which the unit is located of a claim of lien stating the description of the unit, the name of the record owner, the amount due and date when due").

29 ALTA Endorsement 4, supra note 7; ALTA Endorsement 4.1, supra note 8. so ALTA Endorsement 4, supra note 7; ALTA Endorsement 4.1, supra note 8. Sl ALTA Endorsement 4, supra note 7; ALTA Endorsement 4.1, supra note 8.

ALTA Endorsement 4, supra note 7; ALTA Endorsement 4.1, supra note 8. See generally PALOMAR, supra note 6.

JAMES M. PEDOWITZ

* Counsel, Berkman, Henoch, Peterson & Peddy, P.C., Garden City, New York; Visiting Professor of Law, St. John's University School of Law, 1988-1992; Chief Counsel, The Title Guarantee Company, 1969-1979; Eastern Regional Counsel, Pioneer National Title Insurance Company (now Ticor Title Insurance Company), 19721979.

Copyright St. John's Law Review Association Winter 1999
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