1082                            Laws of Maryland                      [Ch. 349

receipt of a written statement from the manager or board of direc-
tors reflecting that payments on said lien were current as of the date
of recordation of said deed of trust, mortgage instrument or encum-
brance.

(c) Upon a voluntary sale or conveyance of a condominium
unit all unpaid assessments against a grantor co-owner for his
pro rata share of the expenses to which 11-116 of this title refers
shall first be paid out of the sales price or by the grantee in the
order of preference set forth above.

11-118. Liability of purchaser and seller of unit for amounts due
under 11-116; purchaser's right of recovery; right to state-
ment of unpaid assessments.

(a)    The purchaser of a condominium unit at a voluntary sale
shall be jointly and severally liable with the seller for the amounts
owed by the seller under 11-116 of this subtitle upon his interest in
the condominium unit up to the time of conveyance; without prej-
udice to the purchaser's right to recover from the seller the amounts
paid by him as a joint debtor.

(b)    Any such purchaser, or a lender under a deed of trust,
mortgage or encumbrance, or parties designated by them or interested
third parties, shall be entitled to a statement from the manager
or board of directors setting forth the amount of unpaid assess-
ments against the seller or borrower, and such purchaser or lender
shall not be liable for nor shall the unit conveyed or encumbered,
be subject to a lien for any unpaid assessment in excess of the
amount set forth.

11-119. Insurance.

The co-owners may, upon resolution of a majority, insure the
building against risks, without prejudice to the right of each co-
owner to insure Ms condominium unit on his account and for his
own benefit. The premiums for such insurance on the entire build-
ing shall be deemed common expenses.

11-120. Same—Disposition of indemnity in case of fire, etc.

(a)    In case of fire or other disaster the insurance indemnity
shall, except as provided in subsection (b) below, be applied to
reconstruct the building.

(b)    Reconstruction shall not be compulsory where destruction
comprises the whole or more than two thirds (⅔rds) of the build-
ing. In such case, and unless otherwise unanimously agreed upon
by the co-owners, the indemnity shall be delivered pro rata to the
co-owners entitled to it in accordance with the provisions made by
the bylaws or in accordance with a decision of three fourths (¾ths)
of the co-owners, if there be no bylaw provision, after first paying
off,, out of the respective shares of the unit owners, to the extent
sufficient for the purpose, all liens on the unit of each co-owner.
If the building is reconstructed, the provisions for such eventuality
made in the bylaws shall be observed, or, in lieu thereof, the deci-
sion of the council of co-owners shall prevail.