Sec. 47-74d. Architect's or engineer's certificate required. Declarant's certificate. Escrow account.
Sec. 47-74d. Architect's or engineer's certificate required. Declarant's certificate. Escrow account. (a) With respect to buildings for which building permits have
been issued after January 1, 1977, if a declarant contracts to sell a unit that has been
completed, such declarant shall provide the purchaser with one or more architect's or
engineer's certificates certifying to the best of the knowledge, information and belief
of each such architect or engineer that the building in which such unit is located, or
the portions thereof described in each certificate, has been constructed substantially in
accordance with the plans and specifications referred to in each such certificate, except
for the equipping of any other units in such building. The declarant shall also provide
the purchaser with a certificate by the declarant that the one or more architect's or
engineer's certificates provided to the purchaser cover all of such plans and specifications and that such building has been completed in accordance with the representations
made by the declarant in the disclosures required by this chapter. The requirements of
this section shall not apply to condominium units constructed prior to January 1, 1977.
(b) With respect to units in buildings for which building permits have been issued
after January 1, 1977, and with respect to common elements of the condominium within
which such units are situated, without regard to any expansion of the condominium at the
option of the declarant, if a declarant contracts to sell a unit that has not been completed or
equipped or whose common elements have not been completed, equipped or landscaped
substantially in accordance with the plans and specifications and representations made
by the declarant in the disclosures required by this chapter, and if there is no payment
and performance bond in the amount of the construction contract price that covers such
completion, equipping or landscaping, the declarant shall establish an escrow with a
bank or trust company having trust powers, an attorney who is a member of the bar in
this state, or a title company authorized to do business in this state, with whom shall be
deposited all payments received by the declarant from the buyer of such unit upon the
sale price of the unit, until the amount deposited shall equal ten per cent of the sale price.
The funds so escrowed may be deposited in separate accounts, or in common escrow
or trust accounts, or commingled with other escrow or trust moneys handled by or
received by the escrow agent. The conditions for the release of funds from the escrow
shall conform to the following: (1) One-half of such funds shall be disbursed to the
declarant at the closing of the sale of the unit, provided the certificates required under
subsection (a) of this section have been delivered to the buyer of such unit or, if the unit
is not completed or equipped at the closing of the sale of the unit, the buyer and the
declarant may otherwise agree as to the disbursement of such funds and the time within
which such certificates shall be so delivered. If prior to such disbursement the escrow
agent has received from the purchaser written notice of a rescission pursuant to section
47-74f, all funds so deposited by or to the account of such purchaser shall be returned
to the purchaser free of all costs of escrow. (2) One-half of such funds shall be held by
the escrow agent as security for the completion of the common elements and shall be
released upon delivery by the declarant to the escrow agent of a written certificate from
one or more architects or engineers certifying to the best of their knowledge, information
and belief that the common elements, or the portions thereof described in each certificate
for which building permits were issued after January 1, 1977, have been completed
substantially in accordance with the plans and specifications referred to in each such
certificate and a certificate of the declarant that the common elements have been completed in accordance with the representations made by the declarant in the disclosures
required by this chapter, and in accordance with the plans and specifications used in the
completion of the common elements and the declarant shall also deliver to the escrow
agent, and the escrow agent may rely on, a certificate of the declarant that the one or
more architect's or engineer's certificates delivered to the escrow agent cover all of the
common elements described in such plans and specifications for which such certificates
are required. Any liability of the escrow agent shall terminate upon delivery of such
architect's or engineer's and declarant's certificates to such agent and such agent's
payment of the escrow funds to the declarant. If the common elements have not been
completed within five years after issuance of the first certificate of occupancy on any
building in the condominium for which the building permit was issued after January 1,
1977, the balance of the escrow funds shall be refunded to the unit owners' association.
(3) If the escrow funds earn interest, the interest shall be paid to the declarant if and
when he is entitled to receive the principal or paid to the purchaser if he properly voids
the contract and is entitled to return of the principal or to the unit owners' association
if and when entitled thereto. The reasonable expenses incurred by the escrow agent in
discharging his duties shall be an expense of the escrow. (4) Escrow funds shall not be
subject to attachment by the creditors of either the declarant or the purchaser.
(c) If a declarant who is required by this section to establish the escrow required
by this section fails to do so, or if such declarant, or any person acting on behalf of the
declarant, procures the wrongful release of any escrow funds to the declarant or to a
third party, with intent to defraud the purchaser, the person responsible shall be deemed
guilty of embezzlement and upon conviction shall be punished in the manner provided
by law.
(d) No architect or engineer who has a legal or equitable ownership interest in a
condominium may issue a certificate in accordance with this section with respect to
such condominium.
(P.A. 76-308, S. 24, 36; P.A. 77-453, S. 3, 7; P.A. 82-472, S. 163, 183; P.A. 83-28.)
History: P.A. 77-453 added references to engineer's certificates and added provisions re required certificate by declarant;
P.A. 82-472 made a technical change in Subsec. (b) by correcting an internal reference; P.A. 83-28 added Subsec. (d)
prohibiting architects or engineers with an ownership interest from issuing a certificate.
See Sec. 47-90c re effective date and applicability of chapter.
Cited. 192 C. 150.