§ 47C-2-106. Leasehold condominiums. - North Carolina Statutes

§ 47C‑2‑106. Leasehold condominiums.

(a)        Any lease, or a memorandum thereof, the expiration ortermination of which may terminate the condominium or reduce its size shall berecorded. Every lessor of those leases must sign the declaration, and thedeclaration shall state:

(1)        Where the complete lease may be inspected;

(2)        The date on which the lease is scheduled to expire;

(3)        A legally sufficient description of the real estate subjectto the lease;

(4)        Any right of the unit owners to redeem the reversion andthe  manner whereby those rights may be exercised or a statement that they donot have those rights;

(5)        Any right of the unit owners to remove any improvementsafter the expiration or termination of the lease or a statement that they donot have those rights; and

(6)        Any rights of the unit owners to renew the lease and theconditions of any renewal or a statement that they do not have those rights.

(b)        After the declaration for a leasehold condominium isrecorded, neither the lessor nor his successor in interest may terminate theleasehold interest of a unit owner who, after demand, makes timely payment ofhis share of the rent determined in proportion to his common element interestand otherwise complies with all covenants which, if violated, would entitle thelessor to terminate the lease. A unit owner's leasehold interest is notaffected by failure of any other person to pay rent or fulfill any othercovenant under the lease.

(c)        Acquisition of the leasehold interest of any unit owner bythe  owner of the reversion or remainder does not merge the leasehold and feesimple interests unless the leasehold interests of all unit owners subject tothat reversion or remainder are acquired.

(d)        If the expiration or termination of a lease decreases thenumber of units in a condominium, the allocated interests shall be reallocatedin accordance with G.S. 47C‑1‑107(a) as though those units had beentaken by eminent domain. Reallocations shall be confirmed by an amendment tothe declaration prepared, executed, and recorded by the association. (1985 (Reg. Sess., 1986), c. 877, s. 1.)