8-2-3: PROPERTY REPORT:
   A.   Property Report Required; Contents: Prior to offering any condominium unit in a condominium project for sale, the developer shall prepare a property report and shall certify by affidavit that all disclosures contained therein are true to the best of the developer's knowledge and belief. The report shall contain, but not by way of limitation, the following information:
      1.   A statement indicating the name and address of the developer and owner including, but not by way of limitation, all partners of a partnership, all officers and directors of a corporation and all beneficiaries of a trust, and shall further include the following information:
         a.   A statement disclosing persons holding a financial interest in the offering except stockholders and corporations which are subject to and have complied with the registration requirements of the federal securities law.
         b.   A statement disclosing all professionals or professional firms involved in the condominium project including, but not by way of limitation, architects, contractors, attorneys, engineers, accountants and the principal sales and management agents.
      2.   A description of the condominium project which shall include the following:
         a.   A map or plat showing the size and dimension of the condominium project together with all improvements thereon and including the following:
            (1)   A description of the condominium units offered for sale and the nature and extent of individual ownership in such condominium units;
            (2)   A description of the nature and the extent of ownership of all common elements and limited common elements;
            (3)   A description of the nature and ownership of all property and facilities on the site which are not included as part of the condominium project;
            (4)   A description of all existing and proposed facilities including, but not by way of limitation, recreational facilities within the condominium project;
            (5)   The location, nature and ownership of all existing and proposed streets, parking facilities and roads through and contiguous to the site, as well as all existing and proposed easements on, through or contiguous to the site;
            (6)   All drawings, architectural plans and other suitable documents depicting the necessary information for location, maintenance and repair of all condominium property.
Such items shall be incorporated in the property report by reference, and shall be located at the sales office of the developer or his agent, and shall be transferred to the association upon the transfer of control by the developer.
         b.   Projected commencement and completion dates for any proposed construction, renovation or conversion.
         c.   Uses permitted for individual condominium units by the declaration, the bylaws of the association and applicable codes, including within that description, the conditions under which condominium units may be rented.
         d.   A statement as to whether or not a purchaser may purchase more than one condominium unit and under what circumstances said purchase may be effected.
         e.   A statement of legal ownership which shall contain all restrictions of record and any conditions of title.
      3.   A statement disclosing all financial aspects of the condominium project including, but not by way of limitation, the following:
         a.   The name of the construction mortgagee, if any, or the source of interim construction financing, if any.
         b.   The terms and conditions of any long term mortgage financing.
         c.   A statement disclosing the nature and description of the escrow account to be utilized for the deposit of earnest money deposits of purchasers, including in that description the name of the financial institution at which the escrow deposit has been established, or is to be established, and the type of escrow account.
         d.   A statement disclosing the financial ability of the developer and/or owner to complete, within a specified period of time, the construction, renovation or conversion of the proposed condominium units and pertinent recreational and other facilities, including the projected costs thereof and methods of payment therefor, and the additional costs thereof to be imposed upon the condominium unit owners in the event the condominium project is not completed within said specified period of time.
         e.   A statement disclosing the nature and extent of any protection to be afforded to the purchaser by the developer in the event the developer should default on any encumbrance.
         f.   A statement disclosing any pending litigation which would in any manner affect the unit owners' and/or the developer's ability to convey clear title.
      4.   Copies of all forms of sales documents and literature relating thereto including, but not by way of limitation, the following:
         a.   Copies of purchase contracts.
         b.   Copies of the sample trust deed, mortgage and promissory note where financing for the purchase of condominium units is offered by the developer.
         c.   A statement of the sale price, terms, options and conditions of sale of each unsold condominium unit.
         d.   A copy of the sale brochure and floor plans.
         e.   A statement disclosing the identity of the selling agent.
         f.   A statement disclosing the terms and conditions of sale including estimated itemized closing and settlement costs, taxes and expected assessments levied either by the association or any governmental entity.
         g.   A statement of estimated monthly payments for each condominium unit to be itemized as to taxes, utilities, operating costs, assessments, parking, recreational facilities and all other payments in the first year after the projected date of assumption of control by the association.
         h.   If the condominium project is to be financed by the developer, a statement disclosing the nature of the proposed financing of each condominium unit, including the percent of sales price required for down payment, the duration of the loan, interest rate, service charges, appraisal charge, closing costs and the total amount of each monthly payment.
         i.   A description of all appliances and personal property included in the sale of each condominium unit.
      5.   Copies of all required legal documents binding or to be binding upon the condominium project, including:
         a.   The declaration and plat. Moreover, prior to the recording of the declaration, a preliminary declaration and plat may be supplied, provided the same is accompanied by a statement in capital letters inserted in a conspicuous caption on said documents as follows:
THE DESCRIPTION OF THE CONDOMINIUM UNITS AND PERCENTAGE OF OWNERSHIP INTEREST IN COMMON ELEMENTS HEREIN IS PRELIMINARY AND MAY BE CHANGED IN MATERIAL RESPECTS UPON THE RECORDING OF THE DECLARATION AND PLAT WHICH SHALL OCCUR NO LESS THAN THIRTY (30) DAYS PRIOR TO THE TIME OF THE FIRST CLOSING.
         b.   The articles of incorporation or charter of the association.
         c.   The bylaws of the association.
         d.   Any leases of real or personal property applicable to the property.
         e.   Coverage and amounts of condominium insurance policies provided or to be provided.
         f.   A schedule disclosing ownership interest in the common and limited common elements.
         g.   Any management contract, employment agreement or any other contract affecting the use, maintenance or access to all or any part of the property.
      6.   A statement describing the management and the expected operation of the condominium project including, but not by way of limitation, the following:
         a.   The name of the managing agent, if any, and the services to be performed by said agent.
         b.   A statement disclosing that, pursuant to the provisions of this chapter, the developer may not enter into any exclusive contract for management or services of the condominium project or permit a clause in the sales contract between the developer and a prospective purchaser of a condominium unit that would provide for an exclusive management contract to exceed a period of one year after control of said condominium project is transferred to the individual unit owners in accordance with the provisions of the act.
         c.   A statement disclosing the duration of the term of any management contract, the fees, charges and costs provided in said contract, if any, and the circumstances under which said charges, fees and costs may be increased.
         d.   The conditions, if any, under which any management contract may be canceled or terminated.
         e.   A statement disclosing any relationship between the developer and the management firm and the respective corporate officers and controlling interests thereof.
         f.   A copy of the estimated operating budget for the condominium project projected for a period of one year from the expected date that the control of the condominium project will be transferred to the association; said budget shall include monthly payments to be prorated to each condominium unit for maintenance and/or management of the condominium property and further, shall provide for charges for the use of recreation and other facilities, if any. The developer will be held financially responsible for any intentional misrepresentation in the budget analysis. The developer shall be obligated to pay all operating expenses which exceed his estimates of twenty percent (20%). The operating budget shall include, but not by way of limitation, the following:
            (1)   Operational costs:
Answering service.
Building insurance.
Elevator maintenance.
Ground and building maintenance.
Heating fuels.
Janitorial services.
Maintenance and operation of recreational and other facilities.
Other fixed costs.
Other operating costs.
Security.
Sidewalk and street maintenance.
Trash and garbage disposal.
Utilities.
            (2)   Reserve costs:
Miscellaneous reserve funds.
Reserve for improvements.
Reserve for replacement and upkeep of common areas and facilities, including the basis upon which reserves are calculated.
Reserve for taxes and special assessments.
Reserve for unexpected repair work.
If the developer fails to provide a reserve for any one or more of the costs listed herein, the following statement must be inserted in capital letters 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.
         g.   A statement disclosing the current taxes for each condominium unit, and an estimate of any anticipated changes in the tax assessment for condominium units for the first two (2) years of condominium operation.
         h.   A statement disclosing the method and timing of the transfer of control of the condominium project to the association, including a statement disclosing the nature of the association's relationship with the developer and the nature and extent of any interest retained by the developer in the condominium project.
         i.   A statement disclosing the provisions which the developer has provided to cover the proposed operation and maintenance of the condominium project in the event an insufficient number of condominium units are sold within the first two (2) year period to permit a transfer of the project to the association.
      7.   For a condominium conversion, a report by a licensed engineer or registered architect stating the condition and the expected remaining useful life of the following improvements:
         a.   Roof;
         b.   Foundation;
         c.   External and supporting walls;
         d.   Mechanical;
         e.   Electrical;
         f.   Plumbing;
         g.   Other structural elements as well as all other common facilities, together with an estimate of the repair and replacement costs thereof, at current market prices, which shall indicate what the cost per category for each condominium unit owner would be in the event the condominium unit owners were assessed for the estimated repair and replacement costs thereof. This report shall further include the approximate date of installation of the improvements enumerated herein and the date, if any, of any major repairs made to such improvements.
      8.   A statement disclosing the nature and extent of all warranties and disclaimers being made or provided to the purchaser by the developer.
      9.   The following statement in capital letters on the first page thereof:
THE VILLAGE HAS NOT PASSED UPON NOR HAS IT APPROVED THE MERITS OF THIS PROJECT OR GIVEN ITS APPROVAL OF THE STATEMENTS CONTAINED HEREIN. THE PURCHASER IS CAUTIONED THAT ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY STATING THE REPRESENTATIONS OF THE DEVELOPER AND THE PURCHASER SHOULD REFER TO THE PURCHASE CONTRACT FOR ANY BINDING REPRESENTATIONS.
      10.   A statement disclosing whether, and under what circumstances, the unit owners shall be required to be members of, and support or participate financially in the maintenance of recreational facilities including, but not by way of limitation, health clubs, exercise clubs, exercise rooms, swimming pools, party rooms and golf putting greens. If any such facility is not a part of the common elements, the following warning shall be included in capital letters, in a conspicuous caption in the report:
THE (name of facilities) ARE NOT INCLUDED IN THE COMMON ELEMENTS. THESE FACILITIES ARE AVAILABLE TO UNIT OWNERS FOR (a description of the monthly charge and initiation fee). UNIT OWNERS ARE/ARE NOT (as applicable) REQUIRED TO PARTICIPATE FINANCIALLY IN THEIR MAINTENANCE.
      11.   A description of the location, ownership and availability to unit owners and the general public of accessory off street parking associated with the condominium project. If all of such parking facilities are not: a) part of the common elements, or b) divided as individual parking spaces among and designated as being a part of the condominium units, the following statement shall be included in capital letters in the report in a conspicuous caption:
PARKING FACILITIES ASSOCIATED WITH THIS PROJECT ARE NOT OWNED BY THE UNIT OWNERS, AND UNIT OWNERS MAY BE DENIED ACCESS TO SAID FACILITIES.
A description of the availability of such off street parking shall include a statement as to the parking requirements contained in the zoning ordinance of the village at the time the condominium project is, or was, originally constructed.
      12.   A statement disclosing whether there exist any restrictions upon the sale, transfer, conveyance, encumbrance or leasing of any condominium unit. If such a restriction exists, the following shall be included in capital letters in a conspicuous caption in the report:
THE SALE, LEASE OR TRANSFER OF YOUR CONDOMINIUM UNIT IS RESTRICTED OR CONTROLLED AS FOLLOWS:
Immediately following this statement, there shall appear a reference to the documents, articles, paragraphs and pages in the property report wherein the restriction, limitation or control of the sale, lease, encumbrance or transfer of the condominium unit is set forth and described in detail.
   B.   Submission Of Property Report To Prospective Purchasers And To Village:
      1.   A copy of the property report and any amendments or supplements thereto shall be filed with the village community development department by the developer promptly upon the preparation thereof. A copy of said report shall be utilized for informational purposes only and shall be included in the building permit file.
      2.   Subject to compliance with and adherence to the other provisions, conditions and limitations contained in this chapter and the act, a developer or his agent shall not enter into a binding contract or agreement for the sale of a condominium unit until the following has occurred:
         a.   A copy of the property report and any amendments or supplements thereto, if any, have been distributed to the prospective purchaser, including all existing tenants in a prospective condominium conversion;
         b.   The prospective purchaser has been afforded a reasonable amount of time in which to read the property report; and
         c.   A receipt signed by the prospective purchaser has been received by the developer or his agent which acknowledges that the prospective purchaser has received and has had an opportunity to review the property report.
      3.   Such receipts shall be kept on file in the possession of the developer for a period of three (3) years from the date of signature by the prospective purchaser. Receipt shall be subject to inspection by the village at any reasonable time.
      4.   The property report and any amendments or supplements thereto shall be made available by the developer at his offices for inspection by the public at any reasonable time.
      5.   If any information required to be contained in the property report is unavailable prior to the time a prospective purchaser desires to enter into a contract of purchase, the contract may, at the purchaser's option, be executed without the availability of such information; provided, that such information shall be furnished to the purchaser and the developer shall obtain the purchaser's receipt acknowledging receipt of said information prior to the closing of the sale.
      6.   The developer shall not, after the submission of the property report to the community development department of the village, change the terms of the property report without first notifying the community development department in writing of such proposed changes and thereafter notifying, in writing, all purchasers and all existing tenants in any prospective condominium conversion of such changes.
      7.   After the execution of a contract of sale for a condominium unit and prior to the time of closing of said sale, the developer shall deliver to the purchaser a copy of any amendments, supplements or modifications to the property report. (Ord. 2013-29, 6-13-2013)