(A) Pre-sale requirements. Not less than 30 business days prior to offering for sale any condominium units in a condominium project, a developer shall prepare a disclosure declaration, certified by affidavit that all disclosures are true, file an original certified disclosure declaration with the building commissioner, and deliver a copy of the disclosure declaration filed with the building commissioner to all tenants in a conversion condominium.
(B) Posting of disclosure declaration. A copy of the disclosure declaration shall be prominently posted in a public area of the developer's sales office, as well as maintained on file for public inspection during normal business hours in the sales office of the developer.
(C) Required contents. The disclosure declaration shall, at a minimum, contain the following information about the condominium project:
(1) A statement indicating the name, address, and business telephone number of the developer and owner, including, but not limited to, all partners of a partnership, all officers and directors of a corporation, all beneficial owners, or all beneficiaries of a trust, as well as the following:
(a) All persons with a financial interest in the offering except stockholders in corporations subject to the registration requirements of the federal securities law; and
(b) All professionals or professional firms involved in the condominium development, including, without limitation, architects, contractors, attorneys, engineers, and accountants.
(2) Site plan showing size and dimensions of the condominium project, together with all improvements, including the following information:
(a) Description of the condominium units offered and the nature and extent of individual ownership in such condominium unit;
(b) Extent of ownership of all common elements;
(c) Ownership of all property and facilities on the site which are not part of the condominium, including any dedicated elements;
(d) Description and location of all existing and proposed facilities, including, without limitation, public utilities, storm water management facilities, recreational facilities, parking facilities, and roads on and contiguous to the condominium property;
(e) Architectural, engineering, and site plans, as well as other documents as required by the Building Commissioner, shall be incorporated by reference, providing information on the location, scope of maintenance requirements, and completed repairs prior to sale of individual condominium units of all condominium facilities; and
(f) Location, ownership rights, and availability to unit owners and condominium visitors of off-street parking facilities. If the parking facilities are not a common element or are not otherwise deeded as part of individual condominium units, the following statement in bold lettering in a conspicuous caption is required:
THE PARKING FACILITIES ARE NOT OWNED BY THE ASSOCIATION OR UNIT OWNERS, AND UNIT OWNERS MAY BE DEPRIVED USE OF SAME.
(3) Estimated start and completion dates for the developer's construction, renovation, or conversion work, as well as the amount of penalties that may be imposed upon the developer by the village for applicable code violations or failure to prosecute and complete such work in a timely manner.
(4) Permitted uses for individual condominium units by the declaration, by-laws of the association, and applicable zoning provisions.
(5) Statement of title, listing all restrictions of record and the condition of title.
(6) Statement of all financial aspects of the condominium project, including, without limitation:
(a) Name of construction mortgagor or the interim mortgagor;
(b) Name of institution offering long term mortgage financing for the condominium units, if available, and terms and conditions of such mortgages;
(c) Nature and extent of any protection of purchasers' deposits in escrow accounts;
(d) Statement of developer's financial ability to complete construction, renovation, or conversion of proposed condominium units as well as common elements and other facilities, including projected costs and methods of payment, within a timely manner or as may be required by the Building Commissioner; and
(e) Nature and extent of any protection to prospective purchasers if developer defaults on its blanket encumbrance.
(7) Statement of any pending litigation which would affect the developer's ability to convey clear title to individual condominium unit purchasers or common elements to the association.
(8) Sales documents and literature, including, without limitation:
(a) Purchase contract;
(b) Forms of warranty deed or other instrument of conveyance;
(c) Sample deed of trust, mortgage and promissory note;
(d) Statement of sales prices, terms and options;
(e) Sales brochure and floor plans;
(f) Name, address, and business telephone number for selling agent;
(g) Terms and conditions of sale, including required earnest money deposit, estimated itemized closing and settlement costs, taxes and expected special assessments levied either by the association or a governmental entity; and
(h) Estimated monthly payments to be itemized as to principal, interest, taxes, condominium fee and utilities for a period of one year from the expected date of settlement.
(9) Required legal documents binding or to be binding upon the condominium (draft documents are acceptable until final version is available), including, without limitation:
(a) Declaration or master deed;
(b) Articles of incorporation or charter of the association;
(c) By-laws and regulations of the association;
(d) Leases of real or personal property applicable to the condominium;
(e) Schedules of ownership interest in the common elements;
(f) Coverage and amounts of condominium insurance policies; and
(g) Management contract, employment contract, or any other contract affecting the use, maintenance or access to all or any part of the condominium.
(10) Statement of management and expected operation of the condominium project, including, without limitation:
(a) Name, address, designated agent, and business telephone number of management agent, if any, and the services the agent will perform;
(b) Statement disclosing that the developer may not enter into any exclusive contract whatsoever for management or services of a condominium project or individual condominium units that would exceed one year after the date that an association begins governing a condominium project;
(c) Term of any management contract and charges and circumstances, if any, under which the charges may be increased;
(d) Conditions, if any, under which the contract may be canceled or terminated; and
(e) Statement disclosing any relationship between the developer and the management firm and their respective corporate officers and controlling interests.
(11) Estimated one year operating budget for the condominium project, from the expected date that control of the condominium project would pass to the association, including monthly payments to be prorated to each condominium unit. In particular, the operating budget shall include, without limitation, all operational costs, management costs, fixed costs, and reserve costs. If no reserve is to be provided, the following capitalized statement under a conspicuous caption entitled
NO RESERVE FUND HAS BEEN ESTABLISHED
THE DEVELOPER HAS NOT PROVIDED A RESERVE FUND FOR CERTAIN POSSIBLE FUTURE COSTS OF THE CONDOMINIUM. ACCORDINGLY, IT MAY BE NECESSARY TO PROVIDE FOR A SPECIAL ASSESSMENT TO ALL CONDOMINIUM UNIT OWNERS TO PAY FOR SUCH COSTS SHOULD THEY OCCUR.
The developer will be held financially responsible for any intentional misrepresentations in his budget analysis.
(12) Method and timing of transfer of control over the condominium project to the association; the association's relationship with the developer, and the nature and extent of any interest retained by the developer in the condominium project. The transfer of control to the association shall take place within 60 days from the date of issuance of the public report by the duly constituted authorities.
(13) Alternative provisions if an insufficient number of units are sold to cover the proposed operating budget.
(14) In the case of a conversion, a report from an Illinois licensed engineer stating the condition and rated life and expected useful life of the roof, foundation, external and supporting walls, mechanical, electrical, plumbing and structural elements and all other common facilities, together with an estimate at net present value of repair and replacement costs, which costs shall be detailed by apportionment among the individual condominium units based upon each units percentage ownership in the above-listed structural and service elements.
(15) Statement of all warranties and disclaimers being made to the purchaser.
(D) Prospective purchasers; purchase contracts.
(1) It shall be unlawful for the developer, after filing the disclosure declaration with the Building Commissioner, to materially change the terms of the property report without first notifying the Building Commissioner in writing of such intended change and substantially notifying all purchasers and prospective purchasers of such change.
(2) After execution of a purchase contract for a condominium unit, and prior to the closing of the sale, the developer must deliver to the buyer a copy of any amendments, supplements, or modifications to the disclosure declaration.
(3) The prospective purchaser may rescind, in writing, the purchase contract within five days after receiving any amendments, supplements, or modifications to the disclosure declaration without any liability, and shall immediately be entitled to the return of any deposit.
(4) All purchase contracts shall provide the following clause:
Seller hereby grants to purchaser a period of seven days within which to review the condominium documents made available to the purchaser pursuant to the Village of Bellwood's Condominium Conversion Regulations Ordinance.
Notwithstanding any other provision of this agreement, if the purchaser is not satisfied with said condominium documents, the purchaser may, at his election, by written notice to the seller at any time prior to midnight local time on the seventh day following the date the contract is signed by the purchaser, terminate this agreement, and the purchaser's deposit shall be refunded and the parties hereby shall have no further rights or liabilities under the agreement.
The clause must be located either immediately above the purchaser's signature; or under a conspicuous caption entitled "PURCHASER'S RIGHT TO CANCEL."
(5) The rights of purchasers under this chapter may not be waived in the purchaser contract, and any attempted waiver shall be automatically void and without effect.
(6) Every purchase contract shall contain a provision requiring that rental arrangements will be afforded the prospective purchaser for a definite period of time in the eventuality that the condominium project does not succeed in anticipated sales.
(7) Every purchase contract shall provide that in the eventuality the condominium project is not consummated within a reasonable period of time, the prospective purchaser or purchasers will be afforded rental arrangements for a reasonable period of time, and that a specific portion of the rental payment will be applied to the condominium unit purchase price as settlement.
(Ord. 7-56, passed 8-15-07)