§ 47C-2-107. Allocation of common element, interests, votes, and common expense liabilities. - North Carolina Statutes

§ 47C‑2‑107. Allocation of common element, interests, votes, and common expense liabilities.

(a)        The declaration shall allocate a fraction or percentage ofundivided interests in the common elements and in the common expenses of theassociation and a portion of the votes in the association to each unit andstate the formulas used to establish those allocations. Those allocations maynot discriminate in favor of units owned by the declarant.

(b)        If units may be added to or withdrawn from the condominium,the declaration must state the formulas to be used to reallocate the allocatedinterests among all units included in the condominium after the addition orwithdrawal.

(c)        The declaration may provide: (i) that different allocationsof  votes shall be made to the units on particular matters specified in thedeclaration; (ii) for cumulative voting only for the purpose of electingmembers of the executive board; and (iii) for class voting on specified issuesaffecting the class if necessary to protect valid interests of the class. Adeclarant may not utilize cumulative or class voting for the purpose of evadingany limitation imposed on declarants by this chapter nor may units constitute aclass because they are owned by a declarant.

(d)        Except for minor variations due to rounding, the sum of theundivided interests in the common elements and common expense liabilitiesallocated at any time to all the units must each equal one if stated asfractions or one hundred percent (100%) if stated as percentages. If the declarationallocates to each of the units a fraction or percentage of ownership of thecommon elements that results in an actual total of such fractions orpercentages that is greater or less than the actual whole of such ownership,each unit's ownership of the common elements shall be automatically reallocatedso that each unit is allocated the same fraction or percentage of ownership ofthe actual whole as that unit had of the actual total that was greater or lessthan the actual whole. The declarant or the association shall file an amendmentto the declaration reflecting such reallocation which amendment need not beexecuted by any other party.

(e)        The common elements are not subject to partition, and anypurported conveyance, encumbrance, judicial sale, or other voluntary orinvoluntary transfer of an undivided interest in the common elements madewithout the unit to which that interest is allocated is void. (1985 (Reg. Sess., 1986), c. 877, s. 1.)