It shall be unlawful for any developer to offer for sale any condominium unit in a conversion condominium prior to making available to the village and prospective purchasers a property report which shall contain the information specified herein.
A. Identification information including:
1. Name and address of the developer (converter) and the owner including all partners of a partnership, all officers and directors of a corporation, and the beneficial owner or owners of a trust.
2. Name of the building, address and number of units.
3. The principal attorneys, accountants, architect, engineer and contractor of the development.
B. A description of the property and improvements including:
1. A map or plat showing the size and dimension of the condominium project, together with all improvements, including recreational facilities and proposed construction.
2. Description, nature and ownership of all property and facilities on the site which are not a part of the condominium project.
3. The share of ownership of each unit in the common element.
4. Present and planned location of streets and roads, including driveways, access roads and parking areas on and contiguous to the site and the nature of ownership thereof.
C. Proposed prices of the condominium units and a description of personal property which may be included in the sale, stating whether new or existing, including, without limitation: refrigerator, range, garbage disposal, dishwasher, clothes washer, clothes dryer, decorating and floor covering and any change in the sales price resulting from inclusion or exclusion of the items in the purchase.
D. If the purchase of all or any of the condominium units is to be financed by the developer or if financing has been arranged by the developer, a statement indicating:
1. The name, address and telephone number of the person providing such financing;
2. The interest rate to be charged;
3. The downpayment which will be required;
4. The length of the mortgages being offered;
5. The service charge (points) which will be charged;
6. Any other fees which will be charged for considering an application for a mortgage or providing financing including, but not limited to, application fees and appraisal charges.
E. Drawings, architectural plans or 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. Such items may be incorporated in the property report by reference and shall be located at the sales office site or construction office site and shall be turned over to the board of managers upon transfer of control by the developer.
F. Use permitted for individual condominium units by the declaration, bylaws of the condominium association or organization and applicable zoning provisions.
G. Statement of title, listing all restrictions of record and the condition of title.
H. Method and timing of transfer of control over the condominium project to the board of managers and the nature and extent of any interest retained by the developer, and the rights and obligations of unit purchasers after closing and prior to election of the initial board of managers.
I. Projected initiation and completion dates for proposed construction, renovation or conversion and a statement disclosing any penalty imposed by the developer upon the contractor if said completion dates are not met and whether any such penalty will inure to the benefit of a unit purchaser or whether additional costs will be imposed on a buyer if such date is not met.
J. Statement disclosing the existence of the escrow account in which developer is required to deposit any deposit or advance payment in the purchase price pursuant to section 12-3-7 of this title, and the terms and conditions governing the escrowed funds and their release under section 12-3-7 of this title.
K. Statement of any pending litigation which would affect the condominium or the developer's ability to convey clear title.
L. Statement of the current real estate taxes, estimated charges, thereto as a result of the conversion, and an estimate of such tax on each unit and the formula used to derive same.
M. Copies of the sales documents and literature, including, but not limited to:
1. Deed or deeds of conveyance;
2. Bill of sale;
3. Trust deed, if applicable;
4. Mortgage and promissory note if financing is through the developer or such documents as are otherwise available to the developer;
5. Proposed real estate sales contract.
N. Summary of the operating expenses of the buildings as a rental project for the five (5) year period immediately preceding the filing of the declaration.
O. Copies of the following documents numbered and indexed in such a manner as the developer may select, so as to permit ready reference thereto:
1. The declaration and plat.
2. The articles of incorporation or charter of the condominium association.
3. The proposed bylaws and regulations of the condominium association.
4. Coverage and amounts of condominium insurance policies, which coverage shall be equal to or greater than the appraised value of the project after conversion, and a copy of the appraisal report utilized in making such determination.
P. A statement of management and expected operation costs of condominium, including:
1. Name of management agent, if any, and the services the agent will perform.
2. Length of term of any management contract and charges and circumstances, if any, under which the charges may be increased.
3. The conditions, if any, under which contract may be canceled or terminated.
4. Statement disclosing any relationship between the developer and the management firm and their respective corporate officers and controlling interests.
Q. Copy of annual estimated budgets for the condominium project commencing with the filing of the declaration up to and including the expected date that control of the project will pass to the board of managers, which shall include estimated monthly payments to be prorated to each unit. The budget shall include, but not be limited to, the following:
1. Costs included in monthly assessment.
a. Utilities, including heating, fuel, water and sewer not separately metered;
b. Scavenger service;
c. Janitorial service;
d. Ground and building maintenance;
e. Security;
f. Supplies;
g. Maintenance and operation of recreational facilities;
h. Building and other insurance;
i. Elevator maintenance;
j. Sidewalks and street maintenance (including driveways, access roads and parking areas) and snow removal services therefor;
k. Other operating costs, if any;
l. Management services including management fees, legal, accounting and/or bookkeeping services;
m. Reserves, including reserves for improvements, unexpected repair work and replacement and upkeep of common elements and facilities including the basis upon which the reserves are calculated and the manner in which such reserves may be expended by the developer, if at all, prior to transferring ownership to the board of managers.
If no provisions for reserves are included in the estimated common expenses, the following statement in type size and style equal to at least ten (10) point bold type shall be set forth:
NO RESERVE FOR POSSIBLE FUTURE COSTS IS INCLUDED IN THE ESTIMATED COMMON EXPENSES. IT MAY, THEREFORE, BE NECESSARY FOR UNIT OWNERS TO PAY A SPECIAL ASSESSMENT TO PAY FOR SUCH COSTS IF THEY OCCUR.
2. Cost not included in monthly assessment:
a. Any items listed in subsection A1 of this section not included in same;
b. Utilities, including fuel for heat and hot water, electricity, water and sewer which are separately metered.
R. Alternative provisions, if any, if an insufficient number of units are sold to cover the proposed operations and maintenance budget.
S. A report from a qualified, licensed, certified structural engineer or registered architect, not associated with the developer, stating his opinions concerning the condition and the 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 of repair and replacement costs, at current market prices to put said items in proper working order, and which shall indicate what the costs per category of unit would be if the unit owners were assessed for the estimated cost. This report shall include the approximate dates of installation of the facilities listed above and the dates of major repairs to such facilities. The license or registration number of said engineer or architect shall be included in the report. A copy of this report shall be submitted to the village.
T. Explanation of the buyers' cancellation rights and the procedures for cancellation.
U. If there are any restrictions upon the free sale, transfer conveyance, encumbrance or leasing of a unit, then a statement in bold face type or capital letters in substantially the following form shall be included: THE SALE, LEASE OR TRANSFER OF YOUR UNIT IS RESTRICTED OR CONTROLLED. Immediately following this statement, there shall appear a reference to the document, articles, paragraphs, or pages in the disclosure materials where the restrictions or controls are set forth or described in detail.
V. A statement indicating what, if any, warranties apply to the condominium unit, common elements and personal property of the condominium project, and all warranties specifically excluded.
W. Each property report shall contain on the front page the following warning in capital letters, in a type size and style equal to at least ten (10) point bold type:
VILLAGE OF LAKE VILLA LAW 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 CORRECT REPRESENTATIONS.
X. A statement of whether, and under what circumstances, the unit owners are required to be a member of, support, or 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 in capital letters in a type size and style equal to at least ten (10) point type:
THE (HERE NAME FACILITIES) ARE NOT INCLUDED IN THE COMMON ELEMENTS. THESE FACILITIES ARE AVAILABLE TO UNIT OWNER FOR (HERE DESCRIBE MONTHLY CHARGE AND INITIATION FEE). UNIT OWNERS ARE/ARE NOT (AS APPLICABLE) REQUIRED TO PARTICIPATE FINANCIALLY.
Y. A statement as to the existence of the Lake Villa condominium conversion ordinance and availability of a copy of same from the village clerk's office.
Z. The person or persons having a majority beneficial or legal interest in the ownership of the condominium project as of the date of the property report shall sign the property report and affirm that it and any supplements, modifications and amendments are true, full, complete and correct. (Ord. 88-2-3)