Effective 28 Aug 1983

448.4-103. Original sale certificate, general provisions. — 1. An original sale certificate shall contain or fully and accurately disclose:

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

(2) A general description of the condominium, including, to the extent possible, the types, number, and declarant's schedule of commencement and completion of construction of buildings and amenities which the declarant anticipates including in the condominium;

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

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

(5) A projected budget for the association for one year after the date of the first conveyance to a purchaser, and thereafter the current budget of the association and a statement of the budget's assumptions concerning occupancy and inflation factors. The budget shall include:

(a) A statement of the amount, or a statement that there is no amount, included in the budget as a reserve for repairs and replacement;

(b) A statement of any other reserves;

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

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

(e) A statement that under a particular circumstance the budget may not include maintenance charges for a particular amenity or facility if such amenity or facility is not constructed;

(6) Any services not reflected in the budget that the declarant provides, or expenses that he pays, and that he expects may become at any subsequent time a common expense of the association and the projected common expense assessment attributable to each of those services or expenses for the association and for each type of unit;

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

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

(9) A statement that:

(a) Within ten days after receipt of an original sale certificate, or within five days after execution of the sale contract, whichever is longer, and before conveyance, a purchaser may cancel any contract for purchase of a unit from the declarant; and

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

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

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

(12) Any restraints on alienation of any portion of the condominium;

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

(14) Any current or expected fees or charges to be paid by unit owners for the use of the common elements and other facilities related to the condominium;

(15) Any contingencies related to development or sales achievements of the condominium contained in financial arrangements which declarant has obtained for improvements labeled "SHALL BE BUILT" pursuant to section 448.4-119 but incomplete at the time of the execution of the sales contract, together with the name of the institution offering such financial arrangements;

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

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(L. 1983 H.B. 177)