§ 47C-4-103. Public offering statement; general provisions.
§ 47C‑4‑103. Public offering statement; general provisions.
(a) A public offering statement must contain or fully andaccurately disclose:
(1) The name and principal address of the declarant and of thecondominium;
(2) A general description of the condominium, including to theextent possible, the types, number, and declarant's schedule of commencementand completion of construction of buildings and amenities which declarantanticipates including as part of the condominium;
(3) The number of units in the condominium;
(4) Copies of the recorded or proposed declaration (other thanthe plats and plans) and any other recorded covenants, conditions, restrictionsand reservations affecting the condominium; the bylaws, and any rules orregulations of the association; copies of any contracts and leases to be signedby purchasers at closing, and copies of or a brief narrative description ofany contracts or leases that will or may be subject to cancellation by theassociation under G.S. 47C‑3‑105;
(5) Any current balance sheet and a projected budget for theassociation, either within or as an exhibit to the public offering statement,for one year after the date of the first conveyance to a purchaser, andthereafter the current budget of the association, a statement of who preparedthe budget, and a statement of the budget's assumptions concerning occupancyand inflation factors. The budget must include, without limitation:
a. A statement of the amount, or a statement that there is noamount, 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; and
d. The projected monthly common expense assessment for eachtype of unit;
(6) Any services that the declarant provides or expenses that hepays which are not reflected in the budget and that he expects may become atany subsequent time a common expense of the association and the projectedcommon expense assessment attributable to each of those services or expensesfor the association and for each type of unit;
(7) Any initial or special fee due from the purchaser atclosing, together with a description of the purpose and method of calculatingthe fee;
(8) A description of any known or recorded liens, encumbrancesor defects affecting the title to the condominium;
(9) The terms and limitations of any warranties provided by thedeclarant;
(10) A statement that the purchaser must receive a public offeringstatement before signing a contract for purchase and that no conveyance canoccur until seven calendar days following the signing of a contract forpurchase; and that the purchaser has the absolute right to cancel the contractduring the seven calendar days period;
(11) A statement of any known or recorded unsatisfied judgmentsor pending suits against the association, and the status of any pending suitsmaterial to the condominium of which a declarant has actual knowledge;
(12) A statement that any deposit made in connection with thepurchase of a unit will be held in an escrow account pursuant to G.S. 47C‑4‑108,together with the name and address of the escrow agent;
(13) Any restraints on alienation of any portion of thecondominium;
(14) A description of the insurance coverage provided for thebenefit of unit owners;
(15) Any current or known future fees or charges to be paid byunit owners for the use of the common elements and other facilities related tothe condominium;
(16) The extent to which financial arrangements have been providedfor completion of all improvements labeled "MUST BE BUILT" pursuantto G.S. 47C‑4‑119;
(17) A brief narrative description of any existing zoning andother land use requirements governing the condominium; and
(18) A statement that any common element may be alienated orconveyed in accordance with G.S. 47C‑3‑112.
(b) A declarant promptly shall amend the public offeringstatement to report any material change in the information required by thissection and provide a copy of any such material changes to any purchaser whohas executed a contract. If any material change is made in a proposeddeclaration after a contract for purchase of a unit has been signed but beforeconveyance, the purchaser may rescind the contract within seven days afterreceipt of the notice of the change. (1985 (Reg. Sess., 1986), c. 877, s. 1; 1997‑456, s. 27.)