§ 47A-25. Damage to or destruction of property; repair or restoration; partition sale on resolution not to restore. - North Carolina Statutes

§47A‑25.  Damage to or destruction of property; repair or restoration;partition sale on resolution not to restore.

Except as hereinafterprovided, damage to or destruction of the building shall be promptly repairedand restored by the manager or board of directors, or other managing body,using the proceeds of insurance on the building for that purpose, and unitowners shall be liable for assessment for any deficiency; provided, however, ifthe building shall be more than two‑thirds destroyed by fire or otherdisaster and the owners of three‑fourths of the building duly resolve not to proceed with repair or restoration, then and in that event:

(1)        The property shallbe deemed to be owned as tenants in common by the unit owners;

(2)        The undividedinterest in the property owned by the unit owners as tenants in common whichshall appertain to each unit owner shall be the percentage of undividedinterest previously owned by such owner in the common areas and facilities;

(3)        Any liens affectingany of the units shall be deemed to be transferred in accordance with theexisting priorities to the percentage of the undivided interest of the unitowner in the property as provided herein; and

(4)        The property shallbe subject to an action for sale for partition at the suit of any unit owner,in which event the net proceeds of sale, together with the net proceeds ofinsurance policies, if any, shall be considered as one fund and shall bedivided among all the unit owners in proportion to their respective undividedownership of the common areas and facilities, after first paying off, out ofthe respective shares of unit owners, to the extent sufficient for thatpurpose, all liens on the unit of each unit owner. (1963, c. 685, s. 25.)