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 name and address of the developer and owner, including, but not limited to, all partners of a partnership, all officers and directors of a corporation, or all beneficiaries of a trust, as well as the following:
1. All persons with a financial interest in the offering except stockholders in corporations subject to the registration requirements of the federal securities law;
2. All professionals or professional firms involved in the condominium development, including, but not limited to, architects, contractors, attorneys, engineers and accountants.
(B) A description of the condominium project in addition to the legal documents described in subsection (E) of this section:
1. Map or plat showing size and dimensions of the condominium project, together with all improvements, including:
(a) Description of the condominium units offered and the nature and extent of individual ownership in such condominium unit;
(b) Description and nature and extent of ownership of all common elements, general and limited;
(c) Description, nature and ownership of all property and facilities on the site which are not part of the condominium;
(d) Description of all existing and proposed facilities including, but not limited to, recreational facilities, within the condominium;
(e) Location, nature and ownership of streets, parking facilities and roads on and contiguous to the site;
(f) Drawings, architectural plans and other suitable documents setting forth the necessary information for location, maintenance and repair of all condominium facilities (such items shall be incorporated in the property report by reference, and shall be located at the sales office site and shall be turned over to the association upon transfer of control by the developer);
(g) A description of the location, ownership, and availability to unit owners and the general public of off street parking facilities associated with the condominium. If all such parking facilities are not part of the common elements or are divided as individual parking spaces and designated part of the units, the following statement in bold lettering in a conspicuous caption is required:
PARKING FACILITIES ASSOCIATED WITH THIS BUILDING ARE NOT OWNED BY THE UNIT OWNERS AND UNIT OWNERS MAY BE DEPRIVED OF THE USE OF SUCH FACILITIES.
2. Projected initiation and completion dates for any 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;
3. Uses permitted for individual condominium units by the declaration, bylaws of the condominium association, and applicable zoning provisions;
4. Statement of title, listing all restrictions of record and the condition of title.
(C) 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. Nature and extent of any protection of purchasers' deposits in escrow accounts. In the event that purchasers' deposits are not being placed in an escrow account, the following statement in capital letters must be inserted under a conspicuous caption entitled "PURCHASER'S FINANCIAL RISK":
THE DEVELOPER HAS MADE NO ARRANGEMENTS FOR PROTECTING DEPOSITS FOR THE PURCHASE OF A CONDOMINIUM UNIT. ACCORDINGLY, THERE IS A RISK THAT YOU WILL LOSE YOUR DEPOSIT IF THE DEVELOPER BECOMES INSOLVENT.
4. 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;
5. Nature and extent of any protection to a prospective purchaser if the developer defaults on 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.
6. Statement of any pending litigation which would affect the condominium and/or the developer's ability to convey clear title.
(D) Copies of the sales documents and literature, including, but not limited to:
1. Copies of purchase contract;
2. Copies of sample forms of conveyance;
3. Copies of sample deed 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.
(E) 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 or master deed;
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 applicable to the condominium;
5. Schedules of ownership interest in the general and limited common areas;
6. Coverage and amounts of condominium insurance policies;
7. Any management contract, employment contract, or any other contract affecting the use, maintenance or access to all or any part of the condominium.
(F) Statement of management and expected operation of the condominium project, including, but not limited to:
1. Name of management agent, if any, and the services the agent will perform;
2. Statement disclosing that under the provisions of this chapter, the developer may not enter into any exclusive contract for management or services of a condominium project, or permit a clause in the sales contract between a developer and prospective purchaser of a condominium unit that would stipulate an exclusive management contract to exceed a period of one year after said condominium project is to be governed by the association;
3. Length of term of any management contract and charges and circumstances, if any, under which the charges may be increased;
4. The conditions, if any, under which the contract may be canceled or terminated;
5. Statement disclosing any relationship between the developer and the management firm and their respective corporate officers and controlling interests;
6. Copy of estimated operating budget for the condominium project, projected for a period of one year from the expected date that control of the condominium project would pass to the association, to include monthly payments to be prorated to each condominium unit for maintenance and/or management of condominium property and charges for use of recreational and other facilities. The developer will be held financially responsible for any intentional misrepresentations in his budget analysis. In particular, the operating budget shall include, but not be limited to, the following:
(a) Operational costs:
Answering service
Ground and building maintenance
Heating fuels
Janitorial services
Maintenance and operation of recreational and other facilities
Security
Trash and garbage disposal
Utilities
Other operating costs
(b) Management costs:
Bookkeeping services
Legal and accounting services
Management fees
Other management costs
(c) Fixed costs:
Building insurance
Elevator maintenance
Sidewalks and street maintenance
Other fixed costs
(d) Reserve costs:
Reserve for improvements
Reserve for replacement and upkeep of common area and facilities including basis upon which reserves are calculated
Reserve for unexpected repair work
Other reserve funds
If no reserve is provided for any one or more of the costs listed in this subsection, the following statement in capital letters must be inserted in the property report under a conspicuous caption entitled "NO RESERVE FUND HAS BEEN PROVIDED FOR":
THE DEVELOPER HAS NOT PROVIDED A RESERVE FUND 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.
7. 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 sixty (60) days from the date of issuance of the public report by the duly constituted authorities;
8. Alternative provisions, if any, if an insufficient number of units are sold to cover the proposed operations and maintenance budget.
(G) In the case of a conversion from rental or other legal status to condominium, a report from a qualified licensed engineer or registered architect 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 of repair and replacement costs, at current market prices, which shall indicate what the cost per category of co- owner would be if the co-owners were assessed for the estimated replacement cost. This report shall include the approximate dates of installation of the facilities listed above and the date of major repairs to such facilities.
(H) A statement of all warranties and disclaimers being made to the purchaser.
(I) Each property report shall contain on the first page the following warning in capital letters:
WARNING; 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.
(Ord. 2532, 8-15-2005)