{"data":{"id":"us-ky/krs-381.9157","jurisdiction":"us-ky","citation":"KRS 381.9157","heading":"Termination of condominium.","body":"(1) Except in the case of a taking of all the units by eminent domain, a condominium\nmay be terminated only by agreement of unit owners of units to which at least\neighty percent (80%) of the votes in the association are allocated, or any larger\npercentage the declaration specifies. The declaration may specify a smaller\npercentage only if all of the units in the condominium are restricted exclusively to\nnonresidential uses.\n(2) An agreement to terminate a condominium shall be evidenced by the execution of a\ntermination agreement, or ratification thereof, in the same manner as a deed, by the\nrequisite number of unit owners. The termination agreement shall specify a date\nafter which the agreement will be void unless it is recorded before that date. A\ntermination agreement and all ratifications thereof shall be recorded in every county\nin which a portion of the condominium is situated, and is effective only upon\nrecordation.\n(3) In the case of a condominium containing only units having horizontal boundaries\ndescribed in the declaration, a termination agreement may provide that all the\ncommon elements and units of the condominium shall be sold following\ntermination. If, pursuant to the agreement, any real estate in the condominium is to\nbe sold following termination, t he termination agreement shall set forth the\nminimum terms of the sale.\n(4) In the case of a condominium containing any units not having horizontal boundaries\ndescribed in the declaration, a termination agreement may provide for sale of the\ncommon elements, but shall not require that the units be sold following termination,\nunless the declaration as originally recorded provided otherwise or unless all the\nunit owners consent to the sale.\n(5) The association, on behalf of the unit owners, may contract for the sale of real estate\nin the condominium, but the contract is not binding on the unit owners until\napproved pursuant to subsections (1) and (2) of this section. If any real estate in the\ncondominium is to be sold following termination, title to that real e state, upon\ntermination, vests in the association as trustee for the holders of all interests in the\nunits. Thereafter, the association has all powers necessary and appropriate to effect\nthe sale. Until the sale has been concluded and the proceeds thereof distributed, the\nassociation continues in existence with all powers it had before termination.\nProceeds of the sale shall be distributed to unit owners and lienholders as their\ninterests may appear, in proportion to the respective interests of unit owners as\nprovided in subsection (8) of this section. Unless otherwise specified in the\ntermination agreement, as long as the association holds title to the real estate, each\nunit owner and his or her successors in interest have an exclusive right to occupancy\nof the portion of the real estate that formerly constituted his or her unit. During the\nperiod of that occupancy, each unit owner and his or her successors in interest\nremain liable for all assessments and other obligations imposed on unit owners by\nKRS 381.9101 to 381.9207 or the declaration.\n(6) If the real estate constituting the condominium is not to be sold following\ntermination, title to the common elements and, in a condominium containing only\nunits having horizontal boundaries described in the declara tion, title to all the real\nestate in the condominium, vests in the unit owners upon termination as tenants in\ncommon in proportion to their respective interests as provided in subsection (8) of\nthis section, and liens on the units shift accordingly. While  the tenancy in common\nexists, each unit owner and his or her successors in interest have an exclusive right\nto occupancy of the portion of the real estate that formerly constituted his or her\nunit.\n(7) Following termination of the condominium, the proceed s of any sale of real estate,\ntogether with the assets of the association, are held by the association as trustee for\nunit owners and holders of liens on the units as their interests may appear.\nFollowing termination, creditors of the association holding liens on the units, which\nwere recorded before termination, may enforce those liens in the same manner as\nany lienholder. All other creditors of the association are to be treated as if they had\nperfected liens on the units immediately before termination.\n(8) The respective interests of unit owners referred to in subsections (5), (6), and (7) of\nthis section are as follows:\n(a) Except as provided in paragraph (b) of this subsection, the respective interests\nof unit owners are the fair market values of their u nits, limited common\nelements, and common element interests immediately before the termination,\nas determined by one (1) or more independent appraisers selected by the\nassociation. The decision of the independent appraisers shall be distributed to\nthe unit owners and becomes final unless disapproved within thirty (30) days\nafter distribution by unit owners of units to which twenty -five percent (25%)\nof the votes in the association are allocated. The proportion of any unit\nowner's interest to that of all uni t owners is determined by dividing the fair\nmarket value of that unit owner's unit and common element interest by the\ntotal fair market values of all the units and common elements; and\n(b) If any unit or any limited common element is destroyed to the exten t that an\nappraisal of the fair market value thereof before destruction cannot be made,\nthe interests of all unit owners are their respective common element interests\nimmediately before the termination.\n(9) Except as provided in subsection (10) of this sec tion, foreclosure or enforcement of\na lien or encumbrance against the entire condominium does not of itself terminate\nthe condominium, and foreclosure or enforcement of a lien or encumbrance against\na portion of the condominium, other than withdrawable rea l estate, does not\nwithdraw that portion from the condominium. Foreclosure or enforcement of a lien\nor encumbrance against withdrawable real estate does not of itself withdraw that\nreal estate from the condominium, but the person taking title thereto has t he right to\nrequire from the association, upon request, an amendment excluding the real estate\nfrom the condominium.\n(10) If a lien or encumbrance against a portion of the real estate comprising the\ncondominium has priority over the declaration, the partie s foreclosing the lien or\nencumbrance may, upon foreclosure, record an instrument excluding the real estate\nsubject to that lien or encumbrance from the condominium. The provisions of this\nsubsection shall not apply to any common elements constituting a portion of the real\nestate to the extent the common elements as described in and subject to the\ndeclaration have been developed.","path":["KRS Chapter 381"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=36823","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:12Z","sha256":"0500f79b8ff43395760e4d29dcd3656b4f66e01167dcb471bbd70af44b100a78","source_id":"us-ky","stale":false,"prev":"us-ky/krs-381.9155","next":"us-ky/krs-381.9159"},"notice":"GroundRules: Original legal text. Not legal advice."}