Section 448.140

Title XXIX OWNERSHIP AND CONVEYANCE OF PROPERTY

Chapter 448

Effective - 28 Aug 1963   

  448.140.  Insurance proceeds insufficient to reconstruct, effect. — In case of fire or other disaster, if the insurance proceeds are insufficient to reconstruct the building and the unit owners and all other parties in interest do not voluntarily make provision for reconstruction of the building within one hundred and eighty days from the date of damage or destruction, the board of managers may record a notice setting forth such facts and upon the recording of such notice:

  (1)  The property shall be deemed to be owned in common by the unit owners;

  (2)  The undivided interest in the property owned in common which shall appertain to each unit owner shall be the percentage of undivided interest previously owned by such owner in the common elements;

  (3)  Any liens affecting any of the units shall be deemed to be transferred in accordance with the existing priorities to the undivided interest of the unit owner in the property as provided herein; and

  (4)  The property shall be subject to an action for partition at the suit of any unit owner, in which event the net proceeds of sale, together with the net proceeds of the insurance on the property, if any, shall be considered as one fund and shall be divided among all the unit owners in a percentage equal to the percentage of undivided interest owned by each owner in the property, after first paying out of the respective shares of the unit owners, to the extent sufficient for the purpose, all liens on the undivided interest in the property owned by each unit owner.

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(L. 1963 p. 648 § 14)