448.2-110. Exercise of development rights.

Exercise of development rights.

448.2-110. 1. To exercise any development right reservedunder subdivision (1) of section 448.2-105, the declarant shallprepare, execute, and record an amendment to the declaration andcomply with section 448.2-109. The declarant is the unit ownerof any units thereby created. The amendment to the declarationshall assign an identifying number to each new unit created, and,except in the case of subdivision or conversion of unitsdescribed in subsection 2 of this section, reallocate theallocated interests among all units. The amendment shalldescribe any common elements or limited common elements therebycreated, and, in the case of limited common elements, designatethe unit to which each is allocated to the extent required bysection 448.2-108.

2. Development rights may be reserved within any real estateadded to the condominium if the amendment adding that real estateincludes all matters required by section 448.2-105 or section448.2-106, as the case may be, and the plats and plans includeall matters required by subsection 2 of section 448.2-109. Thisprovision does not extend the time limit on the exercise ofdevelopment rights imposed by the declaration pursuant tosubsection 1 of section 448.2-105.

3. When a declarant exercises a development right tosubdivide or convert a unit previously created into additionalunits, common elements, or both:

(1) If the declarant converts the unit entirely to commonelements, the amendment to the declaration shall reallocate allthe allocated interests of that unit among the other units as ifthat unit had been taken by eminent domain.

(2) If the declarant subdivides the unit into two or moreunits, whether or not any part of the unit is converted intocommon elements, the amendment to the declaration shallreallocate all the allocated interests of the unit among theunits created by the subdivision in any reasonable mannerprescribed by the declarant.

4. If the declaration provides, pursuant to subsection 1 ofsection 448.2-105, that all or a portion of the real estate issubject to the development right of withdrawal:

(1) If all the real estate is subject to withdrawal, and thedeclaration does not describe separate portions of real estatesubject to that right, none of the real estate may be withdrawnafter a unit has been conveyed to a purchaser; and

(2) If a portion or portions are subject to withdrawal, noportion may be withdrawn after a unit in that portion has beenconveyed to a purchaser.

(L. 1983 H.B. 177)