§ 47C-3-105. Termination of contracts and leases of declarant. - North Carolina Statutes

§ 47C‑3‑105. Termination of contracts and leases of declarant.

If entered into by or on behalf of the association before the executiveboard elected by the unit owners pursuant to G.S. 47C‑3‑103(f)takes office, (1) any management contract, employment contract, or lease ofrecreational or parking areas or facilities, (2) any other contract or leasebetween the association and a declarant or an affiliate of a declarant, or (3)any contract or lease that is not bona fide or was unconscionable to the unit ownersat the time entered into under the circumstances then prevailing may beterminated without penalty by the association at any time after the executiveboard elected by the unit owners pursuant to G.S. 47C‑3‑103(f)takes office  upon not less than 90 days' notice to the other party. Notice ofthe substance of the provisions of this section shall be set out in eachcontract entered into by or on behalf of the association before the executiveboard elected by the unit owners pursuant to G.S. 47C‑3‑103(f) takesoffice. Failure of the contract to contain such a provision shall not effectthe rights of the association under this section. This section does not applyto any lease the termination of which would terminate the condominium or reduceits size, unless the real estate subject to that lease was included in thecondominium for the purpose of avoiding the right of the association toterminate a lease under this section. (1985 (Reg. Sess., 1986), c. 877, s. 1.)