Prior to offering for sale any condominium units in a condominium project, a developer shall prepare a condominium property report and shall certify by affidavit that all disclosures are true to the best of his knowledge and belief. The condominium property report must be filed with the village, and with all tenants in a conversion condominium. A copy of the condominium property report must be available for public inspection in the sales office of the developer. The report shall contain the following information about the condominium project:
A. A statement indicating the names and addresses of the following:
1. The developer and legal and beneficial owner, if different, of the land and improvements including, but not limited to, all general partners of a partnership, all principal executive officers and directors of a corporation, or all beneficiaries of a trust.
2. Interim and permanent mortgage or construction lenders secured by a blanket encumbrance.
3. All professionals or professional firms involved in the condominium development including, but not limited to, the principal sales and management agents, attorneys, accountants, architects, engineers and contractors.
B. A description of all property and improvements including the following:
1. Map, plat of survey or architect's drawing showing location and dimensions of the condominium project and the land it occupies, together with all improvements, including recreational facilities, proposed construction and present and planned location of streets and driveways.
2. Description of the condominium units offered and the nature and extent of individual ownership in such condominium unit.
3. The identity of owners of such condominium unit including the percentage of former renters who have purchased or contracted to purchase a condominium unit when the property is a conversion, if known. If such units are owned in trust or by nominees, the beneficiaries or principal shall be named, if known.
4. Description and nature and extent of ownership of all common elements, general and limited, including a description of all existing and proposed recreational facilities, and other such facilities within the project.
5. A description of the nature and ownership of all improvements occupying the same zoning lot but which are not part of the condominium.
6. A description of the location, ownership and availability to unit owners and the general public of accessory off street parking associated with the condominium. If all of such parking facilities are not: a) part of the common elements; or b) divided as individual parking space among and designed as being part of the units, the following statement shall be included under a conspicuous caption:
PARKING FACILITIES ASSOCIATED WITH THIS BUILDING ARE NOT OWNED BY THE UNIT OWNERS AND SAID OWNERS MAY BE DEPRIVED USE OF SAME.
7. Location, nature and ownership of easements, streets and driveways on or contiguous to the condominium.
8. The identification of drawings, architectural plans and other suitable documents setting forth the necessary information for location, maintenance and repair of all condominium facilities and equipment, to the extent these documents exist, their location, and times at which they may be inspected.
9. Projected initiation and completion dates for proposed construction, renovation or conversion. Such description shall disclose the existence of penalties, if any and to whom, if the construction, renovation, or conversion completion date is not met and the costs, if any, to be imposed on unit owners if construction is not timely completed.
10. A description of limitations upon uses permitted in individual condominium units as contained in the declaration and bylaws of the condominium association and applicable zoning provisions. Such description shall state whether or under what conditions the condominium units may be rented together by the unit owner.
11. A statement as to whether a purchaser may purchase more than one unit and under what circumstances or conditions.
12. A statement of legal ownership, listing all restrictions, notices, lis pendens and encumbrances of record.
13. In the case of a conversion, a zoning statement disclosing whether the property subject to the conversion is a conforming or nonconforming use for its intended purpose.
C. The method and timing of transfer of control of the condominium to the board of managers and the nature and extent of any interest retained by the developer thereafter.
D. Nature and extent of any protection to a prospective purchaser if the developer defaults on a blanket encumbrance. If there is no protection for purchasers from a developer's default on a blanket encumbrance, the following statement in capital letters must be inserted under a conspicuous caption entitled "PURCHASER'S FINANCIAL RISK":
THE DEVELOPER HAS MADE NO ARRANGEMENTS TO PROTECT THE PURCHASER OF A CONDOMINIUM FROM THE DEVELOPER'S POSSIBLE DEFAULT ON A BLANKET ENCUMBRANCE. ACCORDINGLY, THERE IS A RISK OF LOSING YOUR FINANCIAL INTEREST IN THE EVENT OF THE DEVELOPER'S FAILURE OR BANKRUPTCY.
E. A statement of all financial aspects of the condominium project including, but not limited to:
1. Name of construction mortgagor or the interim mortgagor;
2. Name of institution offering long term mortgage financing for the condominium units, if available, and terms and conditions of such mortgages;
3. Statement of financial ability to complete, within a specified period of time, construction, renovation or conversion of proposed condominium units and recreational and other facilities, including projected costs and methods of payment;
4. If financed by the developer, the proposed financing of each unit, including percent of sales price required for down payment, duration of the loan, interest rate, service charge, appraisal charge, closing charges, and total monthly payment.
F. A statement of any litigation which would affect the condominium or the developer's ability to convey clear title.
G. A statement of the current taxes and estimated changes in the tax assessment of the condominium units which buyers may encounter during the first two (2) years.
H. Copies of sales documents and literature applicable to the individual units including, but not limited to:
1. Copies of purchase contract.
2. Deeds of conveyance.
3. Deeds of trust, mortgage and promissory note.
4. Statement of sales prices, terms and options.
5. Copy of sales brochure and floor plans.
6. Identity of selling agent.
7. Statement of terms and conditions of sale, including estimated itemized closing and settlement costs, taxes and expected special assessments levied either by the condominium or a governmental entity.
8. Statement of anticipated 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.
I. A description of all appliances and personal property included with each unit.
J. Copies of all required legal documents binding or to be binding upon the condominium (proposed documents acceptable until final version is available), including:
1. The declaration and plat of survey. However, prior to the recordation of the declaration, a preliminary declaration and plat may be supplied, provided it is accompanied by the following statement:
THE DESCRIPTION OF UNITS AND PERCENTAGE OF OWNERSHIP INTEREST IN COMMON ELEMENTS HEREIN IS PRELIMINARY AND MAY BE CHANGED IN MATERIAL RESPECTS UPON THE RECORDING OF THE DECLARATION AND PLAT.
2. The articles of incorporation or charter of the condominium association.
3. The bylaws and regulations of the condominium association.
4. Any leases of real or personal property in the condominium expiring later than two (2) years after the first unit is offered for sale.
5. Any management contract, employment contract, insurance policy, or other contract affecting the use, maintenance or access of all or part of the condominium expiring later than two (2) years after the first unit is offered for sale.
6. The coverage and amounts of insurance policies applicable to the condominium, maintained by or on behalf of the developer.
K. A statement of management and expected management costs of the condominium including:
1. Name of management agent, if any, and the services the agent will perform.
2. Length of term of any management contract, its costs, and the circumstances, if any, under which the charges may be increased.
3. The conditions, if any, under which the contract may be canceled or terminated.
4. A statement stating the relationship between the developer and the management firm and their respective corporate officers and controlling interests, if any.
L. An estimated operating budget, including the basis on which each item included in such operating budget was formulated for the condominium, projected for a period of one year from the expected date that control of the condominium project passes to the board of managers. The operating budget shall include the following:
1. Operating costs as follows:
a. Utilities.
b. Heating fuels.
c. Janitorial services.
d. Trash and garbage disposal.
e. Ground and building maintenance.
f. Security.
g. Maintenance and operation of recreational and other facilities.
h. Building insurance.
i. Elevator maintenance.
j. Sidewalks and street maintenance.
k. Other operating costs.
2. Management costs as follows:
a. Accounting services.
b. Legal services.
c. Management fees.
d. Other management costs.
3. Reserve costs as follows:
a. Reserve for improvements.
b. Reserve for unexpected repair work.
c. Reserve for replacement and upkeep of common area and facilities.
d. Reserve for taxes and special assessments.
e. Other reserve costs.
If no reserve is provided for any one or more of the costs listed in this subsection, the following statement must be inserted in the property report under a conspicuous caption entitled "NO RESERVE FUND HAS BEEN PROVIDED":
THE DEVELOPER HAS NOT PROVIDED A RESERVE FOR CERTAIN POSSIBLE FUTURE COSTS OF THE CONDOMINIUM IN HIS BUDGET. ACCORDINGLY, IT MAY BE NECESSARY TO PROVIDE FOR A SPECIAL ASSESSMENT TO ALL CONDOMINIUM UNIT OWNERS TO PAY FOR SUCH COSTS SHOULD THEY OCCUR.
M. Provisions, if any, the developer has made to cover the proposed operations and maintenance budget if an insufficient number of units are sold.
N. In the case of a conversion from rental or other legal status to condominium, a report from a qualified licensed engineer or registered architect, not associated with the developer/builder, describing the condition and expected useful life of the roof, foundation, external and supporting walls; mechanical, electrical, plumbing, heating and structural elements; and all other common facilities, together with an estimate of repair and replacement costs for those items needing repair or replacement, at current market prices. This report shall include the approximate dates of installation of the facilities listed in this subsection and the dates of major repairs to such facilities. There shall be attached to such report the following:
1. A statement of the developer that no notice of violations of the building sections of this code pertaining to the condominium building have been received by the owner or his predecessors for twenty (20) years preceding the property report and its latest amending; or
2. A list of all notices of violations of the building sections of this code received, together with a detailed statement of all violations referred to in such notices, for the prior twenty (20) years.
3. A statement of all warranties and disclaimers being made to the purchaser.
O. A statement of whether and under what circumstances the unit owners are required to be members of, to support, or to participate financially in recreational facilities such as, but not limited to, health clubs, exercise rooms, swimming pools, party rooms and golf putting greens. If any such facility is not part of the common elements, the following warning shall be included:
THE (name facility) ARE NOT INCLUDED IN THE COMMON ELEMENTS. THESE FACILITIES ARE AVAILABLE TO UNIT OWNER FOR (monthly charge and initiation fee). UNIT OWNERS ARE/ARE NOT REQUIRED TO PARTICIPATE FINANCIALLY.
(Ord. 2005-56, 9-8-2005)
P. The board of managers may approve the rental of a unit; provided, however, that at no time shall more than thirty percent (30%) of the units in the association be occupied by other than the unit owner or his immediate family. Any restrictions upon the free sale, transfer, conveyance, encumbrance or leasing of a unit shall include the following statement:
THE SALE, LEASE OR TRANSFER OF YOUR UNIT IS RESTRICTED OR CONTROLLED.
Immediately following this statement, there shall appear a reference to the documents, articles, paragraphs and pages in the property report where the restriction, limitation or control on the sale, lease or transfer of units is set forth or described in detail. (Ord. 2006-46, 8-17-2006)
Q. The following statement shall be included on the first page in capital letters:
THE VILLAGE OF GLENDALE HEIGHTS SPECIFICALLY PROHIBITS ANY REPRESENTATION TO THE EFFECT THAT THE VILLAGE HAS PASSED UPON THE MERITS OF OR GIVEN APPROVAL TO MAKE OR CAUSE TO BE MADE TO ANY PROSPECTIVE PURCHASER ANY REPRESENTATIONS WHICH DIFFER FROM THE STATEMENTS IN THIS PROPERTY REPORT. ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY STATING THE REPRESENTATIONS OF THE DEVELOPER AND ARE NOT BINDING ON THE DEVELOPER. REFER TO THE PROPERTY REPORT FOR BINDING REPRESENTATIONS.
R. The developer shall amend the property report from time to time when any material changes occur in any matter contained in such report. Amendments shall be made as soon as practicable after such change occurs or the developer has reason to know of such change.
1. Amendments shall be attached to reports subsequently distributed to prospective purchasers and shall be immediately distributed to all persons who have purchased or agreed to purchase condominium units.
2. No later than thirty (30) days prior to the recording of the declaration and plat of survey, the developer shall give notice of any material changes in the declaration and plat of survey as described in the property report to each person who has executed a contract to purchase a unit. (Ord. 2005-56, 9-8-2005)