Title 28, Property

[§514B-53] Inspection by commission. (a) After appropriate notification has been made or additional information has been received pursuant to this part, an inspection of the project may be made by the commission. (b) When an inspection is to be made of a project, the developer sh…

§514B-54 Developer's public report; requirements for issuance of effective date. (a) Prior to the issuance of an effective date for a developer's public report, the commission shall have received the following: (b) The developer's public report shall not be used for the purpose o…

[§514B-55] Developer's public report; request for hearing by developer. If an effective date for a developer's public report is not issued within a reasonable time after compliance with registration requirements, or if the developer is materially grieved by the form or content of…

§514B-56 Developer's public report; amendments. (a) After the effective date for a developer's public report has been issued by the commission, if there are any changes, either material or pertinent changes, or both, regarding the information contained in or omitted from the deve…

[§514B-57] Commission oversight of developer's public report. (a) The commission at any time may require a developer to amend or supplement the form or substance of a developer's public report to assure adequate and accurate disclosure to prospective purchasers. (b) The developer…

§514B-58 Annual report. (a) A developer, its successor, or assign shall file annually a report to update the material contained in the developer's public report, together with the payment of nonrefundable fees, at least thirty days prior to the anniversary date of the effective d…

[§514B-59] Expiration of developer's public reports. Except as otherwise provided in this chapter, upon issuance of an effective date for a developer's public report or any amendment, the developer's public report and amendment or amendments shall not expire until such time as th…

§514B-6 Supplemental county rules governing a condominium property regime. No later than July 1, 2022, the counties shall adopt supplemental rules governing condominium property regimes, including agricultural lands that are held in condominium property regimes, established under…

[§514B-60] No false or misleading information. It shall be unlawful for any person or person's agent to testify falsely or make a material misstatement of fact before the commission or to file with the commission any document required by this chapter that is false, contains a mat…

§514B-61 General powers and duties of commission. (a) The commission may: (b) If it appears that any person has engaged, is engaging, or is about to engage in any act or practice in violation of this part, part V, section 514B‑103, 514B‑132, 514B‑134, 514B‑149, sections 514B‑152 …

[§514B-62] Deposit of fees. Unless otherwise provided in this chapter, all fees collected under this chapter shall be deposited by the director of commerce and consumer affairs to the credit of the compliance resolution fund established pursuant to section 26‑9(o). [L 2005, c 93,…

[§514B-63] Condominium specialists; appointment; duties. The director of commerce and consumer affairs may appoint condominium specialists, not subject to chapter 76, to assist consumers with information, advice, and referral on any matter relating to this chapter or otherwise co…

[§514B-64] Private consultants. The director of commerce and consumer affairs may contract with private consultants for the review of documents and information submitted to the commission pursuant to this chapter. The cost of the review by private consultants shall be borne by th…

§514B-65 Investigative powers. If the commission has reason to believe that any person is violating or has violated this part, part V, section 514B‑103, 514B‑132, 514B‑134, 514B‑149, sections 514B‑152 to 514B‑154, section 514B‑154.5, or the rules of the commission adopted pursuan…

§514B-66 Cease and desist orders. In addition to its authority under sections 514B‑67 and 514B‑68, whenever the commission has reason to believe that any person is violating or has violated this part, part V, section 514B‑103, 514B‑132, 514B‑134, 514B‑149, sections 514B‑152 to 51…

§514B-67 Termination of registration. (a) The commission, after notice and hearing, may issue an order terminating the registration of a condominium project upon determination that a developer, or any officer, principal, or affiliate of a developer has: (b) A developer may not co…

§514B-68 Power to enjoin. Whenever the commission believes from satisfactory evidence that any person has violated this part, part V, section 514B‑103, 514B‑132, 514B‑134, 514B‑149, sections 514B‑152 to 514B‑154, section 514B‑154.5, or the rules of the commission adopted pursuant…

§514B-69 Penalties. (a) Any person who violates or fails to comply with this part, part V, section 514B‑103, 514B‑132, 514B‑134, 514B‑149, sections 514B‑152 to 514B‑154, or section 514B‑154.5, shall be guilty of a misdemeanor and shall be punished by a fine not exceeding $10,000,…

[§514B-7] Construction against implicit repeal. This chapter being a general act intended as a unified coverage of its subject matter, no part of it shall be construed to be impliedly repealed by subsequent legislation if that construction can reasonably be avoided. [L 2004, c 16…

[§514B-70] Limitation of actions. No civil or criminal actions shall be brought by the State pursuant to this chapter more than two years after the discovery of the facts upon which the actions are based or ten years after completion of the sales transaction involved, whichever h…

§514B-71 Condominium education trust fund. (a) The commission shall establish a condominium education trust fund that the commission shall use for educational purposes. Educational purposes shall include financing or promoting: (b) The commission shall use all moneys in the condo…

§514B-72 Condominium education trust fund; payments by associations and developers. (a) [Repeal and reenactment on June 30, 2023, by L 2018, c 196, §9, as shown in the main volume, deleted by L 2020, c 57, §2.] Each project or association with more than five units shall pay to th…

§514B-73 Condominium education trust fund; management. (a) The sums received by the commission for deposit in the condominium education trust fund pursuant to section 514B-72 shall be held by the commission in trust for carrying out the purpose of the fund. (b) The commission and…

[§514B-8] Severability. If any provision of this chapter or the application thereof to any person or circumstances is held invalid, the invalidity does not affect other provisions or applications of this chapter which can be given effect without the invalid provisions or applicat…

PART V. PROTECTION OF CONDOMINIUM PURCHASERS A. General Provisions [§514B-81] Applicability; exceptions. (a) This part applies to all units subject to this chapter, except as provided in subsection (b). (b) No developer's public report shall be required in the case of:

[§514B-82] Sale of units. Except as provided in section 514B‑85, no sale or offer of sale of units in a project by a developer shall be made prior to the registration of the project by the developer with the commission, the issuance of an effective date for the developer's public…

§514B-83 Developer's public report. (a) A developer's public report shall contain: (b) A developer shall promptly amend the developer's public report to report any pertinent or material change or both in the information required by this section. [L 2005, c 93, pt of §4; am L 2014…

§514B-84 Developer's public report; special types of condominiums. (a) In addition to the information required by section 514B‑83, the developer's public report for a project containing any existing structures being converted to condominium status shall contain: (b) In addition t…

[§514B-85] Preregistration solicitation. (a) Prior to the registration of the project by the developer with the commission, the issuance of an effective date for the developer's public report by the commission, and the delivery of the developer's public report to prospective purc…

§514B-86 Requirements for binding sales contracts; purchaser's right to cancel. (a) No sales contract for the purchase of a unit from a developer shall be binding on the developer, prospective purchaser, or purchaser until: (b) Purchasers may cancel a sales contract at any time u…

[§514B-87] Rescission after sales contract becomes binding. (a) Purchasers shall have a thirty-day right to rescind a binding sales contract for the purchase of a unit from a developer if there is a material change in the project. This rescission right shall not apply, however, i…

§514B-88 Delivery. In this part, delivery shall be made by:

[§514B-89] Sales contracts before completion of construction. If a sales contract for a unit is signed before the completion of construction or, in the case of a conversion, the completion of any repairs required to comply with section 514B‑5, the sales contract shall contain an …

[§514B-9] Obligation of good faith. Every contract or duty governed by this chapter imposes an obligation of good faith in its performance or enforcement. [L 2004, c 164, pt of §2; am L 2005, c 93, §7]

[§514B-90] Refunds upon cancellation or termination. Upon any cancellation under section 514B‑86 or 514B‑89, the purchaser shall be entitled to a prompt and full refund of all moneys paid, less any escrow cancellation fee and other costs associated with the purchase, up to a maxi…

§514B-91 Escrow of deposits. All moneys paid by purchasers shall be deposited in trust under a written escrow agreement with an escrow depository licensed pursuant to chapter 449. An escrow depository shall not disburse purchaser deposits to or on behalf of the developer prior to…

[§514B-92] Use of purchaser deposits to pay project costs. (a) Subject to the conditions set forth in subsection (b), purchaser deposits that are held in escrow pursuant to a binding sales contract may be disbursed before closing to pay for project construction costs, including, …

[§514B-93] Early conveyance to pay project costs. (a) Subject to the conditions set forth in subsection (b), if units are conveyed or leased before the completion of construction of the building or buildings for the purpose of financing the construction, all moneys from the sale …

[§514B-94] Misleading statements and omissions; remedies. (a) No person may: (b) Every sale made in violation of this section shall be voidable at the election of the purchaser; and the person making the sale and every director, officer, or agent of or for the seller, if the dire…

B. Sales to Owner-Occupants [§514B-95] Definitions. As used in this subpart: "Chronological system" means a system in which the residential units designated for sale to prospective owner-occupants are offered for sale to prospective owner-occupants in the chronological order in w…

[§514B-95.5] Announcement or advertisement; publication. At least once in each of two successive weeks, and at any time following the issuance of an effective date of the first developer's public report for the condominium project, the developer shall cause to be published in at …

[§514B-96] Designation of residential units. (a) The developer of any project containing residential units shall designate at least fifty per cent of the units for sale to prospective owner-occupants pursuant to section 514B‑98. The designation shall be set forth either in the de…

[§514B-96.5] Unit selection; requirements. (a) When the chronological system is used, the developer or the developer's real estate broker, as the case may be, shall offer the residential units that have been designated pursuant to section 514B‑96 as follows: (b) When the public l…

[§514B-97] Affidavit. (a) The owner-occupant affidavit required by section 514B‑96.5 shall expire after three hundred sixty-five consecutive days have elapsed after the recordation of the instrument conveying the unit to the affiant. The affidavit shall expire prior to this perio…

[§514B-97.5] Prohibitions. (a) No person who has executed an owner-occupant affidavit shall sell or offer to sell, lease or offer to lease, rent or offer to rent, assign or offer to assign, or convey the unit until at least three hundred sixty-five consecutive days have elapsed s…

§514B-98 Sale of residential units; developer requirements. (a) The developer may go to sale using either a chronological system or a lottery system at any time after issuance of an effective date for a developer's public report. (b) For a thirty-day period following the initial …