N.C. Gen. Stat. » Chapter 47A
NC General Statutes

N.C. Gen. Stat. § 47A-25 (2026)

Damage to or destruction of property; repair or restoration; partition sale on resolution not to restore

✓ current as of July 2026
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Except as hereinafter provided, damage to or destruction of the building shall be promptly repaired and restored by the manager or board of directors, or other managing body, using the proceeds of insurance on the building for that purpose, and unit owners shall be liable for assessment for any deficiency; provided, however, if the building shall be more than two-thirds destroyed by fire or other disaster and the owners of three-fourths of the building duly resolve  not to proceed with repair or restoration, then and in that event:

(1) The property shall be deemed to be owned as tenants in common by the unit owners;

(2) The undivided interest in the property owned by the unit owners as tenants in common which shall appertain to each unit owner shall be the percentage of undivided interest previously owned by such owner in the common areas and facilities;

(3) Any liens affecting any of the units shall be deemed to be transferred in accordance with the existing priorities to the percentage of the undivided interest of the unit owner in the property as provided herein; and

(4) The property shall be subject to an action for sale for partition at the suit of any unit owner, in which event the net proceeds of sale, together with the net proceeds of insurance policies, if any, shall be considered as one fund and shall be divided among all the unit owners in proportion to their respective undivided ownership of the common areas and facilities, after first paying off, out of the respective shares of unit owners, to the extent sufficient for that purpose, all liens on the unit of each unit owner. (1963, c. 685, s. 25.)

 

Notes of Decisions
Cited in 4 cases (2 in the last 5 years), 2006–2022 · leading case: Grooms Prop. Mgmt. (N.C. Ct. App. 2022).
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Grooms Prop. Mgmt. (N.C. Ct. App. 2022). · cites it 6× “General Statutes, including but not limited to N.C. Gen. Stat. § 47A-25, which provides that “damage to or destruction of the building shall be promptly repaired and restored by the manager or board of directors .”
Grooms Prop. Mgmt. (N.C. Ct. App. 2022). · cites it 6× “General Statutes, including but not limited to N.C. Gen. Stat. § 47A-25, which provides that “damage to or destruction of the building shall be promptly repaired and restored by the manager or board of directors .”
Ceplecha v. Pine Knoll Townes Phase II, 626 S.E.2d 767 (N.C. Ct. App. 2006). · cites it 10× “" See N.C. Gen.Stat. § 47A-25 (2001). The amendment to section 18 effectively alters both the original sections 18 and 19 and reads, in pertinent part: (h) Any portion of the Condominium for which insurance is required under this section which is damaged or destroyed shall be…”
Bodie Island Beach Club Ass'n v. Dixon, 2011 NCBC 27 (N.C. Bus. Ct. 2011). “4 Pursuant to G.S. 47A-25, if a complex such as the Timeshare is at any point two-thirds destroyed and three-fourths of the members so vote, the Timeshare could choose not to reconstruct in the same format and could be rebuilt with only wholly-owned units.”
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