HB 480 -- Uniform Common Interest Ownership Act

Sponsor:  Farmer

This bill is the Uniform Common Interest Ownership Act.  It
expands the condominium law to regulate other common ownership
interests in real property.  The types of common ownership
interests recognized in the bill are condominiums, cooperatives,
and planned communities.  Condominiums are defined as a common
interest community in which portions of the real estate are
designated for separate ownership.  Cooperatives are defined as
a common interest community which owns real estate as an
association and members are entitled to exclusive possession of
a unit by reason of an ownership interest in the association.
Planned communities are common interest communities that are not
condominiums or cooperatives, although a condominium or
cooperative may be a part of a planned community.  An ownership
interest in a cooperative is personal property unless the
declaration states the interest is real property.

A common interest community is created by recording a
declaration of the community, which must be executed like a
deed.  The declaration must include the name of the common
interest community; whether the community is a condominium, a
cooperative, or a planned community; a legal description of the
real estate; a statement of the maximum number of units; the
allocation of common expenses and the portion of votes; and
other particular items enumerated in the bill.

Provisions of the bill will apply to common interest communities
created before its effective date, with certain exceptions
regarding acts occurring before the effective date and
amendments to declarations, bylaws, or plats of the community.
There is an option for a common interest community to elect to
be treated as if the community was created after the effective
date.

Current rules on ownership interests and associations, voting
rights, common interest rights, distribution of proceeds,
bylaws, security interests, priority of interests, merger and
consolidation of communities, and management of communities are
expanded to include all three types of common interest
communities.  Where necessary, modifications are made to reflect
differences in the types of ownership interests.

Parties to a dispute arising under chapter 448, RSMo, the
declaration or the bylaws of a common interest community, may
agree to any form of alternative dispute resolution, but an
agreement to submit to binding arbitration must be in a writing
signed by the parties.