No developer or agent, directly or indirectly, shall sell or offer to sell a condominium ownership interest in a condominium development unless he discloses fully and accurately to each prospective purchaser of the interest all material circumstances or features affecting the development, by preparing and providing to each prospective purchaser a readable and understandable written statement of such circumstances or features. The statement shall not intentionally omit any material fact or contain any untrue statement of a material fact and shall contain all of the following:
(a) The name and address of the condominium development, and the name, address, and telephone number of the developer and of the development manager or his agent;
(b) A general narrative description of the development stating the total number of units, a description of the types of units and price of each type of unit, the total number of units that may be included in the development by reason of future expansion or merger of the development, and a precise statement of the nature of the condominium ownership interest that is being offered;
(c) A general disclosure of the status of construction, zoning, site plan, or other approvals, and compliance or notice of failure to comply with any other federal, state, or local statutes or regulations affecting the development, and the actual or scheduled dates of completion of buildings, recreation facilities, and other common areas and facilities;
(d) The significant terms of any financing offered by or through the developer to purchasers of the condominium ownership interests in the development, including the name of any bank or other institution involved in the financing, the minimum down payment, a statement that the prospective purchaser may obtain financing from another bank or institution, and the annual interest rate;
(e) A description of warranties for structural elements and mechanical and other systems, stated separately for units and for common areas and facilities;
(f) A two-year projection, revised and updated at least every six months, of annual expenditures necessary to operate and maintain the common areas and facilities of the condominium development, prepared by the developer and specifically stating the assumptions and basis of the projection, and a complete statement of estimated monthly cost per unit for such two-year period including:
(1) The formula for determining each unit's share of common expenses;
(2) The amount of taxes and insurance and a description of the basis or formula used in arriving at these amounts;
(3) The dollar amount of operating and maintenance expenses;
(4) The monthly cost of utilities;
(5) Any other costs, fees, and assessments reasonably ascertainable by the developer.
(g) A statement of significant provisions for management of the condominium development including:
(1) Conditions for the formation of a unit owners association;
(2) The apportionment of voting rights among the members of the association;
(3) The contractual rights and responsibilities of the unit owners association;
(4) A statement advising the purchaser that the condominium instruments are binding legal documents and describing how such instruments may be altered or amended by the unit owners association.
(h) The existence or requirement for the establishment of a reserve fund to finance the cost of repair or replacement of the components of the common areas and facilities;
(i) The significant terms of any encumbrances, easements, liens, and matters of title affecting the condominium development;
(j) A statement of the requirement for escrow of deposits;
(k) A statement of any restraints on the free alienability of all or any part of the condominium development;
(l) A statement describing any present litigation concerning the condominium development.
(Ord. 1999-26. Passed 3-22-99.)
(Ord. 1999-26. Passed 3-22-99.)