Title 34
Property

Chapter 36.1
Condominium Law

Article IV
Protection of Condominium Purchasers

R.I. Gen. Laws § 34-36.1-4.03



§ 34-36.1-4.03.  Public offering statement — General provisions.


(a) Except as provided in subsection (b), a public offering statement must 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 that declarant anticipates including in the condominium;

(3) The number of units in the condominium;

(4) Copies and a brief narrative description of the significant features of the declaration, other than the plats and plans, and any other recorded covenants, conditions, restrictions and reservations affecting the condominium; 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 under § 34-36.1-3.05;

(5) 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, without limitation:

(i) An annual amount to establish a sufficient reserve for the painting and/or staining of exterior wood surfaces, replacement of roof shingles, resurfacing of roadways, and replacement of other items subject to deterioration which shall include but not be limited to, exterior wooden decks and mulch;

(ii) An itemization of the life-span and expense for restaining or repainting the exterior wood surfaces, resurfacing the roadways, and reshingling the roof, replacing exterior wooden decks, and replacing mulch, said expenses to be defined as annual and monthly sums per unit as part of the common expense assessment;

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

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

(6) Any services not reflected in the budget that the declarant provides, or expenses that he or she pays, and that he or she 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 due from the purchaser at closing, together with 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 condominium;

(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 that:

(i) Within ten (10) days after receipt of a public offering statement a purchaser, before conveyance, may cancel any contract for purchase of a unit from a declarant;

(ii) If a declarant fails to provide a public offering statement to a purchaser before conveying a unit, that purchaser may recover from the declarant ten percent (10%) of the sales price of the unit; and

(iii) If a purchaser receives the public offering statement more than ten (10) days before signing a contract, he or she cannot cancel the contract;

(12) 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;

(13) A statement that any deposit made in connection with the purchase of a unit will be held in an escrow account until closing and will be returned to the purchaser if the purchaser cancels the contract pursuant to § 34-36.1-4.08, together with the name and address of the escrow agent;

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

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

(16) 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;

(17) The extent to which financial arrangements have been provided for completion of all improvements labeled "MUST BE BUILT" pursuant to § 34-36.1-4.19;

(18) A brief narrative description of any zoning and other land use requirements affecting the condominium; and

(19) All unusual and material circumstances, features, and characteristics of the condominium and the units.

(b) If a condominium composed of not more than twelve (12) units is not subject to any development rights, and no power is reserved to a declarant to make the condominium part of a larger condominium, group of condominiums, or other real estate, a public offering statement may, but need not, include the information otherwise required by subdivisions (a)(9), (10), and (15) — (19) and the narrative descriptions of documents required by subdivision (a)(4).

(c) If a condominium composed of not more than twelve (12) units is not subject to any development rights, and no power is reserved to a declarant to make the condominium part of a larger condominium, group of condominiums, or other real estate, a declarant who owns units for more than two (2) years from the date of the sale of the first unit shall not be required to issue a public offering statement pursuant to this section for those units owned for more than two (2) years.

(d) A declarant promptly shall amend the public offering statement to report any material change in the information required by this section.

History of Section.
P.L. 1982, ch. 329, § 2; P.L. 1988, ch. 662, § 1; P.L. 1990, ch. 432, § 1.