Section 34.35.119. Waiver of liens on unsold common interest community units.

   (a) A lien created under AS 34.35.050  - 34.35.120 arising out of original construction that becomes subject to AS 34.07 or AS 34.08 before the first sale of a unit within a common interest community after commencement of construction shall be subject to the provisions of this section.
   (b) Subject to (c) of this section, a claimant who claims a lien against an entire common interest community shall release that portion of the lien claim that relates to a particular unit within a common interest community selected by the owner of the unsold common interest community units after the claimant receives a partial payment of the lien claim that is equal to 115 percent of the amount determined
        (1) if the common interest community has been established under AS 34.07 by
             (A) dividing the surface area of the common areas and facilities attendant to the common interest community unit by the surface area of all common areas and facilities of the common interest community building; and
             (B) multiplying the result obtained in (A) of this paragraph by the total amount of the claimant's lien claim;
        (2) by the allocated interest in the common expenses if the common interest community has been established under AS 34.08.
   (c) A lien claimant is not required to waive a portion of the lien claim under this section unless the amount of indebtedness secured by a prior encumbrance against the common interest community building held by a construction lender is also reduced by an amount calculated in the same manner as provided in (b) of this section.

Authorities

34.07.110

Notes

References

AS 34.07.110 Release or partial release from encumbrance affecting apartment with first conveyance; partial waiver of lien claims.

History

(Sec. 15 ch 175 SLA 1978; am Sec. 3 ch 95 SLA 1985)