§ 4-103. Public offering statement; general provisions
(a) Except as otherwise provided in subsection (b) of this section, a public offering statement shall contain or fully and accurately disclose all the following:
(1) The name and principal address of the declarant and of the common interest community, and a statement that the common interest community is either a condominium or planned community.
(2) A general description of the common interest community, including to the extent known, the types, number, and declarant's schedule of commencement and completion of construction of buildings, and amenities that the declarant anticipates including in the common interest community.
(3) The number of units in the common interest community.
(4) Copies and a brief narrative description of the significant features of the declaration, other than any plats and plans, and any other recorded covenants, conditions, restrictions, and reservations affecting the common interest community; the bylaws and any rules or regulations of the association; copies of any contracts and leases to be signed by purchasers at closing; and a brief narrative description of any contracts or leases that will or may be subject to cancellation by the association or managing entity under section 3-105 of this title.
(5) The financial information required by subsection (d) of this section.
(6) Any services not reflected in the budget that the declarant provides, or expenses that the declarant pays, and that the declarant expects may become 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 due from the purchaser or seller at the time of sale and a description of the purpose and method of calculating the fee.
(8) A description of any liens, defects or encumbrances on or affecting the title to the common interest community.
(9) A description of any financing offered or arranged by the declarant.
(10) The terms and significant limitations of any warranties provided by the declarant, including statutory warranties and limitations on the enforcement thereof or on damages.
(11) A statement of any unsatisfied judgments or pending suits against the association and the status of any pending suits material to the common interest community of which a declarant has actual knowledge.
(12) Any restraints on alienation of any portion of the common interest community and any restrictions:
(A) on use, occupancy, and alienation of the units, and
(B) on the amount for which a unit may be sold or on the amount that may be received by a unit owner on sale, condemnation, or casualty loss to the unit or to the common interest community, or on termination of the common interest community.
(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 common interest community.
(15) The extent to which financial arrangements have been provided for completion of all improvements which the declarant is obligated to build pursuant to section 4-119 of this title.
(16) A brief narrative description of any zoning and other land use requirements affecting the common interest community.
(17) All unusual and material circumstances, features, and characteristics of the common interest community and the units.
(18) A description of any arrangement described in section 1-209 of this title that binds the association.
(b) If a common interest community composed of not more than four units is not subject to any development rights and no power is reserved to a declarant to make the common interest community part of a larger common interest community, group of common interest communities or other real estate, a public offering statement need not include the information otherwise required by subdivisions (a)(4), (9), (10), (15), (16), and (17) of this section.
(c) A declarant shall promptly amend the public offering statement to report any material change in the information required by this section.
(d) The public offering statement must contain any current balance sheet and a projected budget for the association, either within or as an exhibit to the public offering statement, for one year after the date of the first conveyance to a purchaser, and thereafter the current budget of the association, a statement of who prepared the budget, and a statement of the budget's assumptions concerning occupancy and inflation factors. The budget must include:
(1) a statement of the amount, or a statement that there is no amount, included in the budget as a reserve for repairs and replacement;
(2) a statement of any other reserves;
(3) the projected common expense assessment by category of expenditures for the association; and
(4) the projected monthly common expense assessment for each type of unit. (Added 1997, No. 104 (Adj. Sess.), § 3, eff. Jan. 1, 1999; amended 2009, No. 155 (Adj. Sess.), § 44, eff. Jan. 1, 2012.)