Section 559.111. Shared recreational facilities.

Pursuant to section 134 of the act, a recreational facility which is to be enjoyed by condominium co-owners and third parties shall, at a minimum, comply with the following provisions:

(a)   When the  recreational  facilities  are  owned    by   the    condominium co-owners and are to be used by a third party, all  of  the  following conditions shall be met:

(i)   Disclosure shall be made to  all  prospective    purchasers    that   the recreational facilities will be shared with a third party.

(ii)   The master deed shall define who is entitled   to   use  recreational facilities.

(iii)      The  master  deed  shall   set  forth  the   appropriate  financial obligations of all the parties involved.

(b)   When recreational facilities are owned by a third party and condominium co-owners are  obligated   to  help  financially  support   the recreational facilities, all of the following conditions shall be met:

(i)      Disclosure shall be made to prospective purchasers of their financial obligations and responsibilities as co-owners to support the recreational  facilities. Such disclosure shall include  information  regarding  all   fees  charged  and compensation paid.

(ii)   The condominium co-owners shall have an equitable vote, as set forth in the disclosure statement, as to the operation  and   management  of the recreational facilities.

(iii)   An arbitration clause to settle disputes upon consent of the parties shall be included in the condominium legal documents.

(iv)   The necessary easements shall be established.

(v)  The books and records of the recreational facilities shall be kept separate from other operations and shall be made available for  inspection by the co-owners.

History: 1979 AC; 1985 AACS.