448.4-103. Original sale certificate, general provisions.

Original sale certificate, general provisions.

448.4-103. 1. An original sale certificate shall contain orfully and accurately disclose:

(1) The name and principal address of the declarant and ofthe condominium;

(2) A general description of the condominium, including, tothe extent possible, the types, number, and declarant's scheduleof commencement and completion of construction of buildings andamenities which the declarant anticipates including in thecondominium;

(3) The total number of units in the condominium;

(4) Copies or a brief narrative description of thesignificant features of the following documents relating to thecondominium: the declaration, other than the plats and plans,and any other recorded covenants, conditions, restrictions, andreservations, excluding utility easements, affecting thecondominium; the bylaws and any rules and regulations of theassociation; any management contract, employment contract, leaseof recreational or parking areas or facilities, and any othercontract or lease between the association and a declarant or anaffiliate of a declarant;

(5) A projected budget for the association for one yearafter the date of the first conveyance to a purchaser, andthereafter the current budget of the association and a statementof the budget's assumptions concerning occupancy and inflationfactors. The budget shall include:

(a) A statement of the amount, or a statement that there isno amount, included in the budget as a reserve for repairs andreplacement;

(b) A statement of any other reserves;

(c) The projected common expense assessment by category ofexpenditures for the association;

(d) The projected monthly common expense assessment for eachtype of unit;

(e) A statement that under a particular circumstance thebudget may not include maintenance charges for a particularamenity or facility if such amenity or facility is notconstructed;

(6) Any services not reflected in the budget that thedeclarant provides, or expenses that he pays, and that he expectsmay become at any subsequent time a common expense of theassociation and the projected common expense assessmentattributable to each of those services or expenses for theassociation and for each type of unit;

(7) Any initial or special fee, other than customary closingcosts, due from the purchaser at closing, together with adescription of the purpose and method of calculating the fee;

(8) The terms and significant limitations of any warrantiesprovided by the declarant, including statutory warranties andlimitations on the enforcement thereof or on damages;

(9) A statement that:

(a) Within ten days after receipt of an original salecertificate, or within five days after execution of the salecontract, whichever is longer, and before conveyance, a purchasermay cancel any contract for purchase of a unit from thedeclarant; and

(b) If a purchaser receives the original sale certificatemore than ten days before signing a contract, he may not cancelthe contract;

(10) A statement of any unsatisfied judgments or pendingsuits against the association, and the status of any pendingsuits material to the condominium of which a declarant has actualknowledge;

(11) A statement that any deposit made in connection withthe purchase of a unit will be held in escrow for five days afterreceipt of the original sale certificate and will be returned tothe purchaser if the purchaser cancels the contract pursuant tosection 448.4-108, together with the name and address of theescrow agent;

(12) Any restraints on alienation of any portion of thecondominium;

(13) A description of the insurance coverage provided forthe benefit of unit owners;

(14) Any current or expected fees or charges to be paid byunit owners for the use of the common elements and otherfacilities related to the condominium;

(15) Any contingencies related to development or salesachievements of the condominium contained in financialarrangements which declarant has obtained for improvementslabeled "SHALL BE BUILT" pursuant to section 448.4-119 butincomplete at the time of the execution of the sales contract,together with the name of the institution offering such financialarrangements;

(16) A list of all improvements contemplated in thecondominium which the declarant reserves the right not to build,and a list of all improvements contemplated in the condominiumwhich the declarant is obligated to build, as provided insections 448.4-118 and 448.4-119.

(L. 1983 H.B. 177)