2010 Pennsylvania Code
Title 68 - REAL AND PERSONAL PROPERTY
Chapter 34 - Protection of Purchasers
3402 - Public offering statement; general provisions.

     § 3402.  Public offering statement; general provisions.
        (a)  General rule.--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
        without limitation the types, number and declarant's schedule
        of commencement and completion of construction of all
        buildings, units and amenities. The public offering statement
        shall also contain a narrative description of the type and
        character of units offered, including a statement of the
        degree of completion to be provided or undertaken by the
        declarant of such units and the common elements necessary for
        use and enjoyment of such units upon the conveyance by the
        declarant of the units offered.
            (3)  The total number of additional units that may be
        included in the condominium and the proportion of units the
        declarant intends to rent or market in blocks of units to
        investors.
            (4)  A brief narrative description of any options
        reserved by a declarant to withdraw withdrawable real estate
        under section 3206(1) (relating to contents of declaration;
        flexible condominiums) and the expected effects that
        withdrawal would have on the remaining portion of the
        condominium.
            (5)  Copies and a brief narrative description of the
        significant features of the declaration (other than the plats
        and plans), and the bylaws, rules and regulations, the
        agreement of sale, copies of any contracts and leases to be
        signed by the purchasers prior to or at closing and a brief
        narrative description of any other contracts or leases or
        agreements of a material nature to the condominium that will
        or may be subject to cancellation by the association under
        section 3305 (relating to termination of contracts and leases
        of declarant).
            (6)  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 material assumptions,
        including those concerning occupancy and inflation factors.
        The budget must include, without limitation:
                (i)  A statement of the amount, or a statement that
            there is no amount, included in the budget as a reserve
            for repairs and replacement.
                (ii)  A statement containing a description of any
            provisions made in the budget for reserves for
            anticipated material capital expenditures or any other
            reserves or, if no provision is made for reserves, a
            statement to that effect.
                (iii)  The projected common expense assessment by
            category of expenditures for the association.
                (iv)  The projected monthly common expense assessment
            for each type of unit.
            (7)  Any:
                (i)  services not reflected in the budget that the
            declarant provides, or expenses that he pays, and that he
            expects may become at any subsequent time a common
            expense of the association; and
                (ii)  personal property not owned by the association
            but provided by the declarant and being used or to be
            used in the operation and enjoyment of the common
            elements which is or will be required in connection with
            the operation and enjoyment of the common elements after
            such personal property is no longer provided by the
            declarant, and the projected common expense assessment
            for the association and for each type of unit
            attributable to each of those services or expenses and
            purchase or rental of such personal property.
            (8)  Any initial or special fee due from the purchaser at
        closing together with a description of the purpose and method
        of calculating the fee.
            (9)  A description of any liens, defects or encumbrances
        on or affecting the title to the condominium.
            (10)  A description of any financing for purchasers
        offered or arranged by the declarant.
            (11)  The terms and significant limitations of any
        warranties provided by the declarant including statutory
        warranties and limitations on the enforcement thereof or on
        damages.
            (12)  A statement in at least ten-point bold face type,
        appearing on the first page of the public offering statement,
        as follows:
                (i)  That within 15 days after receipt of a public
            offering statement, or within seven days in the case of
            the sale of a time-share estate, or an amendment to the
            public offering statement that materially and adversely
            affects the rights or obligations of the purchaser, the
            purchaser, before conveyance, may cancel any contract for
            purchase of a unit from a declarant.
                (ii)  That if a declarant fails to provide a public
            offering statement, and any amendments thereto, to a
            purchaser before conveying a unit, that purchaser may
            recover from the declarant damages as provided in section
            3406(c) (relating to purchaser's right to cancel).
                (iii)  A description of such damages.
                (iv)  That if a purchaser receives the public
            offering statement more than 15 days before signing a
            contract, he cannot cancel the contract, or more than
            seven days in the case of the sale of a time-share
            estate, except that, in accordance with subparagraph (i),
            he shall have the right to cancel the contract before
            conveyance within 15 days (seven days in the case of the
            sale of a time-share estate) after receipt of any
            amendment thereto that would have a material and adverse
            effect on the rights or obligations of that purchaser.
            (13)  A statement of any judgments against the
        association, the status of any pending suits to which the
        association is a party and the status of any pending suits
        material to the condominium of which a declarant has actual
        knowledge.
            (14)  A statement that any deposit made in connection
        with the purchase of a unit will be held in an escrow account
        in accordance with the provisions of section 3408 (relating
        to escrow of deposits) and will be returned to the purchaser
        if the purchaser cancels the contract pursuant to section
        3406.
            (15)  Any restraints on alienation of any portion of the
        condominium.
            (16)  A description of all insurance coverage provided or
        intended to be provided if such insurance is not then in
        effect for the benefit of unit owners, including the types
        and extent of coverage and the extent to which such coverage
        includes or excludes improvements or betterments made to
        units.
            (17)  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.
            (18)  The extent to which financial arrangements have
        been provided for completion of all improvements labeled
        "MUST BE BUILT" pursuant to section 3414 (relating to
        declarant's obligation to complete and restore).
            (19)  All unusual and material circumstances, features
        and characteristics of the condominium and the units.
            (20)  In the case of a leasehold condominium, at least
        the following information:
                (i)  The name and address of each lessor and his
            assignee, if any.
                (ii)  Any relationship between the declarant and any
            lessor or assignee.
                (iii)  A description of the leased property.
                (iv)  The rent and any provision in the lease for
            increases in the rent and any other charges or payments
            required to be paid by the lessee under the lease.
                (v)  Whether the lessee has any right to terminate
            the lease.
                (vi)  The information contained in the declaration as
            required by section 3207(a) (relating to leasehold
            condominiums).
                (vii)  The following notice in bold type: "Purchasers
            should be aware that this is a leasehold condominium and
            the purchaser's interest therein may be less valuable
            than a fee interest, may depreciate over time and may be
            of questionable marketability."
            (21)  A statement containing a declaration as to the
        present condition of all structural components and major
        utility installations in the subject property, including the
        dates of construction, installation and major repairs if
        known or ascertainable, and the expected useful life of each
        item, together with the estimated cost (in current dollars)
        of replacing each of the same.
            (22)  A description of how votes are allocated among the
        units and a statement as to whether cumulative or class
        voting is permitted and, if so, under what circumstances.
        Such statement shall also explain the operation of such
        cumulative or class voting.
            (23)  A description of any circumstances under which the
        association is to become a master association or part of a
        master association.
            (24)  A statement of all governmental approvals and
        permits required for the use and occupancy of the condominium
        indicating the name and expiration date of each such approval
        or permit that has been obtained and, as to any governmental
        approvals or permits that have not been obtained, a statement
        indicating when each such permit or approval is expected to
        be obtained and the person who shall bear the expense of
        obtaining each such permit or approval.
            (25)  A statement as to whether there are any outstanding
        and uncured notices of violations of governmental
        requirements and, if there are any such notices of
        violations, a description of the alleged violation and a
        statement indicating when each violation is expected to be
        cured and the person who shall bear the expense of curing
        such violation.
            (26)  A statement as to whether the declarant has
        knowledge of any one or more of the following:
                (i)  Hazardous conditions, including contamination
            affecting the condominium site by hazardous substances,
            hazardous wastes or the like, or the existence of
            underground storage tanks for petroleum products or other
            hazardous substances.
                (ii)  Any investigation conducted to determine the
            presence of hazardous conditions on or affecting the
            condominium site.
                (iii)  Any finding or action recommended to be taken
            in the report of any such investigation or by any
            governmental body, agency or authority in order to
            correct any hazardous conditions, and any action taken
            pursuant to those recommendations.
        If the declarant has no knowledge of such matters, the
        declarant shall make a statement to that effect. Declarant
        shall also set forth the address and phone number of the
        regional offices of the Department of Environmental Resources
        and the United States Environmental Protection Agency where
        information concerning environmental conditions affecting the
        condominium site may be obtained.
        (b)  Exceptions.--If a condominium composed of not more than
     12 units is not a flexible condominium 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 subsection (a)(3), (4) and
     (18) and the narrative descriptions of documents required by
     subsection (a)(5).
        (c)  Amendment for material change in information.--A
     declarant promptly shall amend the public offering statement to
     report any material change in the information required by this
     section.
     (Dec. 18, 1992, P.L.1279, No.168, eff. 45 days)

        References in Text.  The Department of Environmental
     Resources, referred to in subsec. (a), was abolished by Act 18
     of 1995. Its functions were transferred to the Department of
     Conservation and Natural Resources and the Department of
     Environmental Protection.
        Cross References.  Section 3402 is referred to in sections
     3102, 3320, 3401, 3403, 3404, 3407, 3410, 3414 of this title.