(A) A portion of the property for which insurance is required pursuant to Section 27-31-240 and which is damaged or destroyed must be repaired or replaced promptly by the council of co-owners unless:
(1) repair or replacement is illegal under a state statute or local health ordinance; or
(2) eighty percent of the co-owners, including the owner of an apartment which is not to be rebuilt, vote not to rebuild; except that the property bylaws may expressly require a percentage greater, but not less than, eighty percent of the co-owners.
(B) The cost of repair or replacement in excess of insurance proceeds and reserve must be considered a common expense.
(C) If the entire property is not repaired or replaced, the insurance proceeds:
(1) attributable to the damaged common elements must be used to restore the damaged area to a condition compatible with the remainder of the property;
(2) attributable to apartments and limited common elements that are not rebuilt must be distributed to the owners of those apartments and to the owners of those apartments to which limited common elements were allocated, or to the lienholders, as their interests may appear;
(3) remaining must be distributed to all of the co-owners or lienholders, as their interests may appear, in proportion to the percentage as described in Section 27-31-60.
(D) If the co-owners vote not to rebuild an apartment, that apartment's allocated interest must be reallocated automatically upon the vote and the council of co-owners promptly shall prepare, execute, and record an amendment to the master deed reflecting the reallocations.
HISTORY: 1962 Code Section 57-518; 1962 (52) 1866; 1967 (55) 449; 1984 Act No. 463, Section 5; 2006 Act No. 250, Section 1, eff March 24, 2006.
Editor's Note
2006 Act No. 250, Section 2, provides as follows:
"This act takes effect upon approval by the Governor and applies to all horizontal properties governed by the Horizontal Property Act, notwithstanding a provision in the master deed or bylaws to the contrary."
Effect of Amendment
The 2006 amendment rewrote this section.
Structure South Carolina Code of Laws
Title 27 - Property and Conveyances
Chapter 31 - Horizontal Property Act
Section 27-31-10. Short title.
Section 27-31-20. Definitions.
Section 27-31-30. Establishment of horizontal property regime.
Section 27-31-40. Apartments may be purchased, owned, and the like.
Section 27-31-50. More than one person may own apartment.
Section 27-31-60. Property rights of apartment owner.
Section 27-31-70. Common elements shall not be divided.
Section 27-31-80. Use of common elements.
Section 27-31-90. Incorporation of co-owners.
Section 27-31-100. Master deed or lease; contents.
Section 27-31-110. Plot plan and building plan.
Section 27-31-120. Designation of apartments on plans; conveyance or lease of apartment.
Section 27-31-130. Waiver of regime and merger of apartment records with principal property.
Section 27-31-140. Merger as bar to subsequent horizontal property regime.
Section 27-31-150. Administration of property; bylaws.
Section 27-31-160. Provisions required in bylaws; modification of system of administration.
Section 27-31-170. Compliance with bylaws, rules, and regulations; remedy for noncompliance.
Section 27-31-180. Records of receipts and expenditures.
Section 27-31-190. Expenses shall be shared.
Section 27-31-200. Unpaid assessments; payment upon sale.
Section 27-31-220. Liability of purchaser of apartment.
Section 27-31-230. Liens arising subsequent to recording of master deed or lease.
Section 27-31-250. Repair or reconstruction; vote of co-owners; application of insurance proceeds.
Section 27-31-260. Sharing expenses in case of fire or other disaster.
Section 27-31-270. Assessment and collection of taxes.
Section 27-31-280. Council of co-owner's right of access.
Section 27-31-290. Limitation on liability of co-owners for common expenses.
Section 27-31-300. Effect on contracts entered into before June 6, 1967.
Section 27-31-410. "Conversion of rental units to condominium ownership" defined.
Section 27-31-430. Disclosure of physical condition of building.