55-477 - Liability for public offering statement; requirements.
§ 55-477. Liability for public offering statement; requirements.
A. Except as provided in subsection B, a declarant, prior to the offering ofany cooperative interest to the public, shall prepare a public offeringstatement conforming to the requirements of §§ 55-478, 55-479, 55-480 and55-481.
B. A declarant may transfer responsibility for preparation of all or a partof the public offering statement to a successor declarant or to a person inthe business of selling cooperative interests who intends to offercooperative interests in the cooperative for his own account. In the event ofany such transfer, the transferor shall provide the transferee with anyinformation necessary to enable the transferee to fulfill the requirements ofsubsection A.
C. Any declarant or other person in the business of selling cooperativeinterests who offers a cooperative interest for his own account to apurchaser shall deliver a public offering statement in the manner prescribedin subsection A of § 55-483. The person who prepared all or a part of thepublic offering statement is liable under §§ 55-483, 55-492, 55-500 and55-501 for any false or misleading statement set forth therein or for anyomission of material fact therefrom with respect to that portion of thepublic offering statement which he prepared. If a declarant did not prepareany part of a public offering statement that he delivers, he is not liablefor any false or misleading statement set forth therein or for any omissionof material fact therefrom unless he had actual knowledge of the statement oromission or, in the exercise of reasonable care, should have known of thestatement or omission.
D. If a unit is part of a cooperative and is part of any other real estateregime in connection with the sale of which the delivery of a public offeringstatement is required under the laws of this Commonwealth, a single publicoffering statement, conforming to the requirements of §§ 55-478, 55-479,55-480 and 55-481 as those requirements relate to each regime in which theunit is located, and to any other requirements imposed under the laws of thisCommonwealth, may be prepared and delivered in lieu of providing two or morepublic offering statements.
(1982, c. 277.)