District of Columbia Code
Subchapter III - Control and Governance of Condominiums
§ 42–1903.20. Conveyance or encumbrance of common elements

(a) A portion of the common elements may be conveyed or subjected to a security interest by the unit owners’ association if persons entitled to cast at least 80% of the votes in the unit owners’ association, including 80% of the votes allocated to units not owned by a declarant, or any larger percentage the condominium instruments specify, agree to convey or subject to a security interest. To convey or subject a limited common element to a security interest, all the owners of units to which any limited common element is allocated shall agree. The condominium instruments may specify a smaller percentage if all of the units are restricted exclusively to nonresidential uses. Proceeds of the sale shall be an asset of the unit owners’ association.
(b) An agreement to convey or subject common elements to a security interest shall be evidenced by the execution and recordation of the agreement, or ratification of the agreement, in the same manner as a deed, and by the requisite number of unit owners. The agreement shall specify a date after which the agreement shall be void unless recorded before that date.
(c) The unit owners’ association, on behalf of the unit owners, may contract to convey or subject common elements to a security interest. The contract shall not be enforceable against the unit owners’ association until approved pursuant to subsections (a) and (b) of this section. Upon approval, the unit owners’ association shall have any power necessary and appropriate to effect the conveyance or encumbrance of the common elements, including the power to execute a deed or other instrument.
(d) Any purported conveyance, encumbrance, judicial sale, or other voluntary transfer of common elements pursuant to this section shall not deprive any unit of the unit’s right of access or support.
(e) Unless the condominium instruments otherwise provide, a conveyance or encumbrance of common elements pursuant to this section shall not affect the priority or validity of a preexisting encumbrance.
(Mar. 29, 1977, D.C. Law 1-89, title III, § 320; as added Mar. 8, 1991, D.C. Law 8-233, § 2(nn), 38 DCR 261.)
1981 Ed., § 45-1860.
This section is referenced in § 42-1901.01 and § 42-1903.18.

Structure District of Columbia Code

District of Columbia Code

Title 42 - Real Property

Chapter 19 - Condominiums

Subchapter III - Control and Governance of Condominiums

§ 42–1903.01. Bylaws; recordation; unit owners’ association and executive board thereof; powers and duties; officers; amendment and contents thereof; responsibility for insurance on common elements

§ 42–1903.02. Control by declarant; limitations; contracts entered on behalf of unit owners; declarant to act where owners’ association or officers thereof not existent; graduated representation of unit owners in executive board; strict construction

§ 42–1903.03. Meetings; electronic notice

§ 42–1903.04. Meetings — Executive board; quorums

§ 42–1903.05. Allocation of votes within unit owners’ association; vote where more than 1 owner of unit; proxies; majority; provisions not applicable to units owned by association

§ 42–1903.06. Officers; disqualification

§ 42–1903.07. Maintenance, repair, etc., of condominiums; right of access for repair; liability for damages arising from exercise thereof; warranty against structural defects; limitations upon actions; bond or other security

§ 42–1903.08. Unit owners’ associations; powers and rights; deemed attorney-in-fact to grant and accept beneficial easements

§ 42–1903.08a. Condominium Association Advisory Council

§ 42–1903.09. Tort and contract liability of association and declarant; judgment liens against common property and individual units

§ 42–1903.10. Insurance obtained by association; notice to unit owners

§ 42–1903.11. Rights to surplus funds

§ 42–1903.12. Liability for common expenses; special assessments; proportionate liability fixed in bylaws; installment payment of assessments; when assessment past due; interest thereon

§ 42–1903.12a. Notice of intention to take legal action to collect past due amounts

§ 42–1903.13. Lien for assessments against units; priority; recordation not required; enforcement by sale; notice to delinquent owner and public; distribution of proceeds; power of executive board to purchase unit at sale; limitation; costs and attor...

§ 42–1903.14. Books, minutes, and records; inspection

§ 42–1903.15. Limitation on right of first refusal and other restraints on alienation; recordable statement of waiver of rights to be supplied promptly upon request

§ 42–1903.16. Warranty against structural defects; limitation for conversion condominiums; exclusion or modification of warranty

§ 42–1903.17. Statute of limitations for warranties

§ 42–1903.18. Master associations — Authorization; powers; rights and responsibilities of unit owners; election of executive board

§ 42–1903.19. Merger or consolidation of condominiums

§ 42–1903.20. Conveyance or encumbrance of common elements

§ 42–1903.21. Unit owners’ association as trustee