Sec. 16. (a) All of the co-owners may remove a property from this article by a recorded removal instrument if the holders of all liens affecting any of the condominium units:

(1) consent in a recorded instrument to the removal; or

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Terms Used In Indiana Code 32-25-8-16

(2) agree in a recorded instrument that their liens be transferred to the percentage of the undivided interest of the condominium unit owner in the property as provided in this section.

     (b) If it is determined under section 10 of this chapter that all of the buildings containing condominium units have been totally destroyed:

(1) the property is considered removed from this article; and

(2) an instrument reciting the removal under section 10 of this chapter shall be recorded and executed by the association of co-owners.

     (c) At the time of recording under subsection (b)(2), the property is removed from this article.

     (d) Upon removal of the property from this article, the property is considered to be owned in common by the condominium unit owners. The undivided interest in the property owned in common that appertains to each condominium unit owner is the percentage of undivided interest previously owned by the owner in the common areas and facilities.

     (e) Under the circumstances described in subsection (a) or in subsections (b) through (d), the property is subject to an action for partition at the suit of any condominium unit owner, in which event the net proceeds of sale, together with the net proceeds of the insurance on the property, if any:

(1) are considered as one (1) fund; and

(2) are divided among all the condominium 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 condominium unit owners, to the extent sufficient for the purpose, all liens on the undivided interest in the property owned by each condominium unit owner.

     (f) A removal under this section does not bar the subsequent resubmission of the property to this article.

[Pre-2002 Recodification Citations: 32-1-6-28; 32-1-6-29.]

As added by P.L.2-2002, SEC.10.