(a) Disclosures. The public offering statement shall disclose fully and accurately the characteristics of the conversion condominium development and the units therein and all unusual and material circumstances and features affecting the condominium development. The public offering statement shall not intentionally omit any material fact or contain any untrue statement of a material fact and shall contain all of the following:
(1) A statement indicating the names and addresses of:
A. The developer and legal and beneficial owner, if different, of the land and improvements, including all general partners of a partnership, or all directors and owners of ten percent (10%) or more of the beneficial interest in the stock of a corporation.
B. The mortgagees, the principal sales and management agents, attorneys, accountants, architects, engineers and contractors.
(2) A description of all condominium property and improvements, including the following:
A. A general narrative description stating the total number of units, a description of the types of units, the price of each type of unit and all appliances and personal property included with each unit.
B. A description of all of the common areas and facilities and the share of ownership of each unit in the common areas and facilities. Limited common areas and facilities, if any, and their ownership shall also be indicated.
C. A site plan showing location and dimensions of the conversion condominium development and the land it occupies together with all capital improvements, a typical floor plan and typical individual unit plans, including dimensions.
D. A description of each of the capital improvements contemplated but not yet completed by the developer, including the type and quality of materials to be used, the estimated costs, and the dates by which such capital improvements shall be completed.
E. A description of the nature and ownership of all improvements and sublots occupying the same zoning lot, but which are not part of the conversion condominium development and the locations, nature and ownership of easements, streets, roads, driveways and parking facilities which are associated with the condominium development.
F. A statement as to the maximum number of units the developer intends to retain ownership of and/or to transfer to persons who do not intend to reside therein.
G. A statement disclosing whether any units or common areas or facilities in the conversion condominium development may be used for commercial purposes, the nature and extent of such uses and the effect of such uses, if any, on the condominium unit owners.
H. A description of the nature of any restraints on the free alienability and/or use of all or any part of the conversion condominium development, excluding residential zoning use. If there are any restrictions upon the free sale, transfer, conveyance, encumbrance or leasing of a unit, the following statement shall be inserted in a type size and style equal to at least twenty point bold type “THE SALE, LEASE OR TRANSFER OF UNITS (NUMBERS) IS RESTRICTED OR CONTROLLED”. Immediately following this statement, there shall appear a reference to the documents, articles, paragraphs and pages where the restriction, limitation or control on the sale, lease or transfer of units is set forth or described in detail.
I. A description of all restrictions, notices, lis pendens and encumbrances of record, and a statement of any pending or threatened litigation concerning the conversion condominium development.
J. A report by the developer stating the age, the condition and the developer's opinion of the remaining useful life of structural elements and mechanical and supporting systems, together with the developer’s estimate of repair and replacement costs projected for five years from the date of the filing of the declaration.
(3) Estimated financial statements, including the following:
A. A two year estimated operating budget, revised and updated at least every six months, of annual expenditures necessary to operate and maintain the common areas and facilities of the conversion condominium development, specifically stating the assumptions and basis on which each item included in such operating budget was formulated. The developer may be held financially responsible for any intentional misrepresentations in the estimated operating budget. The estimated operating budget shall include at least the following costs, if applicable:
1. Operating costs include:
Utilities;
Heating fuels;
Janitorial services;
Trash and garbage;
Ground and building maintenance;
Security;
Maintenance and operation of recreational and other facilities;
Building insurance;
Elevator maintenance;
Sidewalks and street maintenance; and
Other operating costs.
2. Accounting and bookkeeping services include:
Legal services;
Management fees; and
Other management costs.
3. Reserve costs include:
Reserve for unexpected repair work;
Reserve for replacement and upkeep of common areas and facilities; and
Other reserve funds.
If no reserve is provided for any one or more of the applicable reserve costs listed herein, tile following statement shall be inserted in a type size and style equal to at least twenty point bold type: “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.”
B. A two year statement of the estimated common area and facility operating budget for each individual unit, and a statement of all additional estimated monthly expenses for the same period for each unit to be itemized as to utilities, parking, recreational facilities and any other anticipated expenses for each unit.
C. A statement as to what financial arrangements, if any, the developer has made to cover the estimated common area's operating budget in the event an insufficient number of units are sold.
D. A statement of the current realty taxes for each individual unit and estimated changes in the tax assessment for each individual unit assuming the taxes as reappraised are based upon the sales price of the real estate.
E. A statement that any deposit made in connection with the purchase or reservation of any unit shall be placed in an escrow account or held in trust until delivered to the developer at closing, delivered to the developer because of purchaser's default under a contract to purchase the unit or refunded to the purchaser. A deposit of two thousand dollars ($2,000) or more, if held for more than ninety days, shall bear interest at the rate of four percent (4%) per annum for any period exceeding ninety days, and the statement shall so specify. Such escrow funds shall not be subject to attachment by the creditors of either the purchaser or the developer, and the statement shall so specify.
(4) A description of warranties, including the following;
A. A two year warranty by the developer covering the full cost of any labor and materials for any repair or replacement of the common areas and facilities, and a one year warranty covering the full cost of labor and materials for any repair or replacement of structural, mechanical and other elements pertaining to each unit, excluding costs necessitated by acts of God.
B. The warranties specified herein shall commence on the date of the filing of the deed of the first condominium ownership interest transfer in the conversion condominium development to a purchaser in good faith for value.
C. In the case of appliances furnished as part of the unit by the developer, the valid assignment by the developer of the express and/or implied warranty of the manufacturer shall satisfy the developer's warranty obligation.
D. All warranties owned by the developer that exceed time periods specified herein with respect to any part of the units or common areas and facilities shall be assigned to the purchaser.
(5) Copies of the sales documents and literature, including, but not limited to:
A. Any leases of real or personal property in the conversion condominium development other than residential leases expiring later than two years after the filing of the public offering statement with the City.
B. Any employment contract, insurance policy, or other contract affecting the use, maintenance or access to all or part of the conversion condominium development expiring later than two years after the filing of the public offering statement with the City.
C. The coverage and amounts of any insurance policies applicable to the conversion condominium development.
D. Any management agreement, including name of management agent, services to be performed, term, charges, circumstances, if any, under which the charges may be increased, conditions, if any, under which the agreement may be cancelled or terminated and a statement stating the relationship between the developer and the management firm, if any. The term of such management agreement shall be governed by Ohio R.C. 5311.25(D).
(6) A statement as to recreational facilities, including a statement of whether, and under what circumstances, the unit owners are required to be members of, support or participate financially other than as part of their common expenses in recreational facilities, such as, but not limited to, health clubs, exercise rooms, tennis courts, swimming pools, party rooms and golf putting greens. If any recreational facility is not part of the common areas, charges for its use shall not exceed charges customarily made for similar facilities in the City or in surrounding communities, and the statement shall so specify. Additionally, if any recreational facility is not part of the common areas, the following warning shall be inserted in a type size and style equal to at least twenty point bold type:
“THE (HERE NAME FACILITIES) ARE NOT INCLUDED IN THE COMMON FACILITIES. THESE FACILITIES ARE AVAILABLE TO UNIT OWNERS FOR (HERE DESCRIBE MONTHLY CHARGE AND INVITATION FEE). UNIT OWNERS ARE/ARE NOT (AS APPLICABLE) REQUIRED TO PARTICIPATE FINANCIALLY.”
(7) A statement as to parking facilities, including a description of the location, ownership and availability to unit owners and the general public of parking associated with the condominium. If all such parking .facilities are not part of the common areas or divided as individual parking spaces among and designated as being part of the units, the parking facilities must be legally dedicated to the exclusive use of the conversion condominium development and charges for the use of the parking facilities shall not exceed charges customarily made for similar facilities in the City or surrounding communities, and the statement shall so specify. Further, the following statement shall be inserted in a type size and equal to at least twenty point bold type:
“PARKING FACILITIES ASSOCIATED WITH THIS BUILDING ARE NOT OWNED INDIVIDUALLY OR IN C0MMON BY THE UNIT OWNERS.”
(8) A statement conspicuously displayed on the first page of each copy of the public offering statement in a type size and style equal to at least twenty point bold type:
“WARNING: ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY STATING THE REPRESENTATIONS OF THE DEVELOPER AND ARE NOT BINDING ON THE DEVELOPER. REFER TO THIS PUBLIC OFFERING STATEMENT FOR CORRECT REPRESENTATIONS.”
(9) The signature of the executive officer of the developer to a statement affirming under oath that the public offering statement is, and any supplements, modifications and amendments are true, full, complete and correct as he truly believes.
(b) Amendments to Public Offering Statement. The developer shall amend the public offering statement from time to time when any material changes occur in any matter contained therein. Amendments shall be made as soon as practicable after such material change occurs or the developer has reasons to know of such material change and a public offering statement is not current unless all amendments are incorporated therein.
(c) Promotional Use of Public Offering Statement. The public offering statement shall not be distributed or used for any promotional purposes before its filing with the City and afterwards, with the exception of sales brochures contained therein, shall be used only in its entirety for promotional purposes.
(Ord. 82-51. Passed 9-21-82.)