Sec. 7-103 Protection of Purchasers.
   a.   Condominium disclosure statement.
      1.   The declarant must provide the condominium disclosure statement filed with the Town to all existing tenants in a conversion condominium. A copy of the condominium disclosure statement must be available for public inspection in the sales or business office of the declarant.
      2.   The condominium disclosure statement shall disclose fully and accurately the characteristics of the condominium and the units therein and all unusual and material circumstances and features affecting the condominium. It shall include the following:
         a)   The name, principal address and telephone number of the declarant or developer and the condominium.
         b)   A general description of the condominium, including the number and type of units, the asking price of each type of unit, any restrictions on use and occupancy of the units, floor plans, the arrangements for off-street parking and the proportion of units that the declarant intends to rent.
         c)   Copies of the declaration, the by-laws, the rules and regulations, and any contracts and leases to be signed by purchasers at closing, with a brief narrative description of each document.
         d)   A projected itemized budget for one (1) year after the date of the first conveyance to a purchaser, including operating costs, management costs and reserve costs:
         e)   A description of the proposed improvements to the units or the common elements, in addition to those required under Section 7-102 4e' which have not been completed by the date on which the condominium instruments are filed with the Town. The description of each improvement shall specify the type and quality of materials to be used, the estimated cost, and the time by which improvement shall be completed.
         f)   For a conversion condominium, information available on the actual expenditures made for all repairs, maintenance, operation, or upkeep of the subject property within the last three (3) years set forth with the proposed budget of the condominium. If the property has not been in existence for a period of three (3) years, the information shall be provided for the maximum period the property has been occupied.
         g)   A statement of the declarant, based on a report prepared by an independent, licensed architect or engineer, describing the present condition of all structural components i.e. roof, foundation, external and supporting walls; major mechanical, electrical, plumbing and heating system, and also including the approximate dates of construction, installation and major repairs, the expected useful life of each item, and, for major mechanical systems, the estimated cost of replacing each of the same.
         h)   A list of any uncured violations of the applicable building and housing codes or any other applicable codes, which are specified in the Condominium Assessment Report prepared by the Town.
         i)   A copy of any management contract, recreational lease or other contract or lease affecting the condominium with a brief narrative description of each document and an indication of the relationship, if any, between the declarant and the managing agent or firm.
         j)    The terms of any warranties provided by the declarant.
         k)    Any initial or special fee due from the purchaser at closing with a description of the purpose and method of calculating the fee.
         l)    Any current or expected fee to be paid by unit owners for the use of the common elements and other facilities related to the condominium.
         m)    A description of any Hens, title defects, or encumbrances affecting the title to the condominium as of the date of preparation of the condominium disclosure statement.
         n)    A description of any financing offered by the declarant.
         o)   A description of the insurance coverage to be provided for the benefit of the unit owners.
         p)    A statement that within thirty (30) days after receipt of a condominium disclosure statement and all amendments thereto, a purchaser may cancel a contract for purchase of a unit in accordance with the conditions specified in section 6 'b\
         q)    A statement that any deposit made in connection with the purchase of a unit will be held in an escrow account until closing and will be returned to the purchaser if the contract is canceled pursuant to Section 7-103 'b\
         r)    The status of any pending litigation which would directly affect the subject condominium and/or the declarant's ability to convey clear title.
   b.   Purchaser's right to cancel.
      1.   Unless delivery of a condominium disclosure statement is not required, a declarant shall provide a purchaser of a unit with a copy of the condominium disclosure statement and all amendments thereto before entering into a contract of sale-Unless a purchaser is given the condominium disclosure statement more than thirty (30) days before executing a contract for the purchase of a unit, the purchaser may cancel the contract within thirty (30) days after first receiving the condominium disclosure statement. The notice of cancellation by the purchaser must be in writing.
      2.   Cancellation pursuant to subparagraph (1) without penalty. All payments which were made the purchaser before cancellation, including interest where applicable, shall be refunded by declarant within ten (10) days after receiving notice of cancellation.
   c.   Escrow of deposits.
      1.   Any deposit made in connection with the purchase or reservation of a unit shall be placed in escrow and held in an account designed solely for that purpose by an institution whose accounts are insured by a government agency until 1) delivered to the declarant at closing; 2) delivered to the declarant because of purchaser's default under a contract to purchase the unit; or 3) refunded to the purchaser.
      2.   If the deposit is placed in an interest bearing account, the interest shall be paid to the purchaser.
      3.   Such escrow funds shall not be subject to attachment by the creditors of either the purchaser or the declarant.
   d.   Warranties.
      1.   All sales contracts for the first-time sale of any condominium unit covered under this ordinance shall contain the following express warranties by the declarant:
         a)   Common elements and systems. Common elements and systems shall refer to the roof, foundation, external and supporting walls and other structural elements, the electrical, plumbing, heating, air conditioning and other mechanical system, and all other common facilities, including but not limited to private sidewalks, recreational areas and common open space (but excluding decorating and carpeting). The declarant shall warrant the materials, workmanship, operation, construction, or condition of all such items or elements for two (2) years from the day of transfer of title of the first unit so transferred. The declarant shall provide his own warranty, whether or not any manufacturer's warranty currently exists.
         b)   Individual unit mechanical equipment. Individual unit mechanical equipment shall refer to all appliances and other mechanical equipment including heating, electrical, and plumbing systems physically located within the individually owned units. The declarant shall warrant the materials, workmanship, operation, construction, and condition of said items for one year from the date of title transfer of that individual unit.
      2.   The declarant shall have the option to repair or replace warranted systems or elements, or to pay the cash value of such repair or replacement, except that where he/she fails upon notice and reasonable time as set forth below, to repair, replace, or pay for said item or system, or to state in writing why they do not fall within the warranty, the unit owners, may decide whether to repair or replace the items, The declarant shall not be required to honor his/her own warranty unless or until the unit owner or association, as the case may be, shall have first sought to enforce existing manufacturer's warranties.
      3.   In order to cause said warranty to be honored, the unit owner, as the case may be, shall give timely notice of any defect or failure of operation to the declarant or his successor, all such notices to be during the period of warranty.
      4.   To assure compliance with the warranties set forth in this subsection the declarant shall set up escrows or other appropriate security acceptable to the Town pursuant to regulations promulgated under this section, which shall provide for said escrows or other security to revert to sole control of the declarant at the expiration of the different warranty periods unless outstanding claims exist against them. Escrows or other appropriate security shall be in an amount constituting the total of one percent (1 %) of the sales price of each unit sold.
(Ord. No. 887, § 6, 5-12-82)