(a) Contents. A developer must include in the property report:
(1) The names and addresses of the owner and developer of the property;
(2) The names of cooperative members who became members before memberships were offered for sale to the public;
(3) A description of the cooperative project that contains:
(i) A survey of the site that shows the property boundary and the location of all existing or proposed improvements;
(ii) The floor plans for residential units;
(iii) A description on the nature and ownership of all real and personal property on the site that will be owned by the cooperative;
(iv) A statement as to whether streets within the cooperative project will be dedicated to public use or maintained by the cooperative;
(v) A list of violations of the county building or housing code existing when the developer files the property report;
(vi) A description of the work and projected completion dates for proposed construction or repair of violations of the county building or housing code;
(vii) A projected completion date for conversion;
(viii) The uses of individual units that are permitted by:
a. The cooperative articles of incorporation;
b. The bylaws that govern internal organization and operation of the cooperative;
c. The lease that gives a member the right to use a particular unit; or
d. Applicable zoning provisions;
(ix) A statement as to whether a member of the cooperative may rent a unit to a person who is not a member;
(x) The method and timing of the transfer of control of the cooperative from a developer to the members; and
(xi) The nature and extent of an interest that a developer will retain after control of the cooperative transfers to the members;
(4) Purchase information, including:
(i) Purchase price;
(ii) Conditions of purchase;
(iii) Projected settlement costs; and
(iv) A statement that, until closing, a developer must keep a deposit that a purchaser makes in connection with the purchase of a cooperative membership in an escrow account under section 10-301, Real Property Article, Annotated Code of Maryland;
(5) Financial information, including:
(i) The name of a construction lender or interim lender;
(ii) The name of an institution that is lending funds for the cooperative project;
(iii) A statement of the proportionate interest related to each membership, including:
a. Ownership interest in the cooperative; and
b. Responsibility for cooperative loan payments;
(iv) A summary of the terms of a lien on cooperative real property, including:
a. A loan or promissory note;
b. A deed of trust;
c. A mortgage;
d. A judgment that creates a lien on real property;
e. An option or contract to sell real property;
f. A trust agreement that affects the cooperative; and
g. A lien that results from a tax assessment by a public authority;
(v) A summary of the rights and responsibilities of a purchaser and cooperative member regarding liens on cooperative property; and
(vi) A statement of whether a member may claim a pass-through deduction for federal or state income tax for the payments made by the cooperative for real estate taxes and for interest paid on a loan secured by cooperative property;
(6) Copies of the following legal documents:
(i) Articles of incorporation;
(ii) Bylaws;
(iii) Subscription agreement;
(iv) Membership agreement; and
(v) Lease for a member;
(7) A list of other legal documents that the developer must make available on request, including:
(i) A deed for cooperative property;
(ii) A lease of property to which the cooperative is or will be a party; and
(iii) A contract that affects the use of, maintenance of, or access to cooperative property;
(8) In the case of conversion, a statement of the operating costs of the rental residential property for the three-year period before a conversion;
(9) A copy of the projected annual operating budget for the cooperative that includes:
(i) Operating costs, including:
a. Utilities;
b. Trash and garbage disposal;
c. Ground and building maintenance;
d. Security;
e. Maintenance and operation of the facilities; and
f. Insurance;
(ii) Management costs, including:
a. Legal services;
b. Bookkeeping and accounting services; and
c. Management fees;
(iii) Reserve fund information, including a report from a licensed engineer that states:
a. The condition and remaining useful life of major cooperative property elements; and
b. The projected schedule of expenses for deferred maintenance, repairs, and replacement of cooperative property elements;
(iv) A schedule of projected monthly payments that each member must pay to the cooperative, including:
a. Mortgage costs;
b. Operating costs;
c. Management costs;
d. Reserve fund costs;
e. Taxes;
f. Special assessments imposed by government; and
g. Service or recreation fees that a member may choose to pay; and
(10) A statement of all warranties.
(b) Unlawful statements.
(1) A developer must not state:
(i) That Montgomery County, Maryland, has approved a cooperative;
(ii) That Montgomery County, Maryland, has found that a property report is complete or accurate;
(iii) Anything in a property report that is false or misleading; or
(iv) Anything that differs from the contents of a property report.
(2) Warning. On the first page of each property report, the developer must give the following warning in boldface or enlarged type: "It is unlawful for anyone to state that Montgomery County, Maryland, has approved this cooperative housing corporation. It is unlawful to state anything that differs from the contents of this property report."
(c) Affirmation. A developer must sign a property report and verify under penalty of perjury that the report is complete and correct. (1985 L.M.C., ch. 39, § 1.)