New York Codes, Rules and Regulations
Title 13 - DEPARTMENT OF LAW
Chapter II - SECURITIES TRANSACTIONS AND PERSONNEL
Subchapter B - REAL ESTATE SYNDICATES
Part 19 - CONDOMINIUM OFFERINGS
Section 19.2 - Contents of offering plan

(a) Any restrictions upon the mortgaging of an individual condominium interest, and whether a mortgage of one condominium interest constitutes a lien upon other condominium interests or personal property therein within the condominium project; the relationship of the lien under such mortgage to any liens for the payment of common charges; the requirements for the payment of common charges by one who acquires a condominium interest subsequent to the initial sale whether in a judicial sale or otherwise.

(b) Whether banks, insurance companies and other institutional lenders in the State or territory in which the condominium interest is located may invest in mortgages on individual condominium interests; details concerning proposed mortgage financing.

(a) uses or intended uses of the property (such as for residential, commercial or industrial use), and the persons or parties who may use the property or facilities therein;

(b) the land on which any apartment or other structures are to be erected, including, where applicable, type of land-fill and other material particulars;

(c) the design and structural details, including number of stories in each structure, number of units in each structure, the basic materials used for exterior and interior construction, and a brief description of interior walls and facing, floors and ceiling, bathrooms, painting and papering, roof, insulation and heating systems, windows and doors, kitchen equipment, bathroom equipment, patios, sundecks and terraces, wiring, lighting fixtures, ventilators, air-conditioning, companies supplying water, electricity, gas or other utilities, sanitary sewage system, garbage disposal facilities and service, plumbing, storm water disposal, T.V. antennas, laundry facilities, elevators, description of landscaping and grounds, public halls, stairways, entrance and exits, closet space in apartments, storage space per apartment or other subdivisions, general storage facilities, detailed description of recreational facilities and equipment in the condominium projects including size of swimming pool, if any, and materials used therefor, date of construction or scheduled completion;

(d) the surrounding areas including zoning classifications, shopping facilities, schools, public transportation facilities, fire fighting services, police protection; the assessed valuation, real estate tax rate and real estate taxes for the past two years (if an existing property), or a projection thereof by a competent real estate expert based on existing practices.

(a) interest in the common elements;

(b) contribution for the payment of aggregate common charges of the condominium regime;

(c) share of distributions by the condominium regime to which each owner is entitled.

The offering plan should state whether the above percentages or numbers are alterable and if so the details thereof.

(a) The legal right of such regime to control the administration, maintenance and repair of common elements, to govern the conduct of owners of condominium interests and to levy common charges upon such owners, to replace or alter portions of the condominium project.

(b) A summary in the offering plan of the bylaws, rules and regulations of the condominium regime.

(c) The manner of election of the board or other governing group of such condominium regime, and the compensation payable to such group or board.

(d) The details concerning the governing board or group of such condominium regime including the number of members therein, the qualifications required of such members, terms of office, powers and duties, manner of removal of such members and quorum required for meetings.

(e) Provisions for meetings of owners of condominium interests including the notices required for such meetings and the conduct of such meetings, and the rights and powers of such owners.

(f) The method of allocating common charges for the condominium project among the owners of condominium interests.

(g) Provisions regarding the adoption and amendment of house rules governing the conduct of owners of condominium interests or other occupants of apartments or other subdivisions, the maintenance of apartments or other subdivisions, and common elements and all other relevant matters.

(h) Any undertaking to maintain records of the actions of the board or other governing group of the condominium regime and of meetings of such group or of owners of condominium interests, and of financial records and books of account of the condominium regime including a chronological listing of receipts and expenditures, an account for each condominium interest which shall contain the amount of each assessment of common charges thereon, the dates when due, the amounts paid thereon, and the balance due, copies of the declaration of condominium ownership (or other legal instrument submitting the property to condominium ownership), bylaws, rules and regulations and floor plans of apartments or other subdivisions, and whether such will be held available for inspection by owners of condominium interests and their agents.

Note:

The offering plan should also contain an undertaking to have the books of account of the condominium regime audited by an independent public accountant and to furnish all owners of condominium interests with annual verified statements by such accountants of the financial condition and receipts and expenditures of the condominium regime for the preceding fiscal year, in accordance with the statutory requirements of article 23-A of the General Business Law.

(i) Details concerning the hiring and firing of managers and other employees, and the powers and duties which may be delegated to them.

(j) The percentage or number of votes required of the owners of condominium interests or of the board or managing group of the condominium regime for all actions, including elections of officers, amendments of bylaws, capital expenditures, reconstruction of damaged or destroyed units, merger of units, abandonment of the condominium form of ownership.

(k) Details concerning the operations and management of the condominium project by the condominium regime.

(l) Procedure and conditions required for the severance of some of the condominium interests from the condominium regime, or for the abandonment of the condominium form of ownership, the division of proceeds of the sale, if any, of all condominium interests upon such abandonment, and the disposal of existing liens on the condominium interests upon abandonment.

(m) A detailed delineation of the portions of the real property to be maintained and repaired by the condominium regime and those portions which are required to be maintained by the owners of the individual common interests, including outside walls, interior walls between apartments, interior partitions within apartments, pipes and wires within walls and partitions and fixtures.

(n) Rights of entry into apartments or other portions of the condominium project for the purpose of making emergency or other repairs; responsibility for the payment of such repairs and for damages as a result of the foregoing.

(o) Details of provisions regarding damage or destruction of apartments or other portions of the condominium project, including provision for reconstruction and the votes required therefor, the application of insurance proceeds received upon such damage or destruction, the assessment of owners of condominium interests for additional moneys required for reconstruction and the method of apportioning such insurance proceeds or such assessments among such owners, and the effect of failure to reconstruct.

(p) A provision for representative actions by or against the condominium regime or the owners of condominium interests.

(a) The date when all moneys received from purchasers are to be returned in the event that the property is not consummated.

(b) The dates and conditions upon which the plan may and shall be declared effective and subsequent to which the offering may not be abandoned or otherwise terminated.

(c) The date of closing of title to the condominium interests offered, together with the conditions which must exist and the requirements which must be met before such closing takes place.

(a) A special risk section that, if applicable, must be on a separate page, immediately following the table of contents. All features of a plan which involve significant risk or will disproportionately or unusually affect common charges or obligations of unit owners in future years of condominium operation must be conspicuously disclosed and highlighted. A brief description of the risk should be given in this section and a more thorough description should be given in a referenced later section. Questions as to whether a risk should be highlighted in this section should be resolved in favor of inclusion. Special risks include, but are not limited to, the example set forth in clause (b) of this subparagraph.

(b) If the purchase agreement is not contingent on obtaining financing, the purchaser's obligations to pay the balance of the purchase price without regard to the availability of financing and purchaser's maximum loss upon failure to pay the balance of the purchase price must be explained.

(A-1) -certification by sponsor and sponsor's principals (orig.); and

(A-2) -certification by sponsor's engineer or architect (orig.).

(B-1) -copy of title company report dated within 30 days of submission;

(B-2) -copy of specimen title policy for all individual units which unconditionally insures that a valid condominium has been established and that the policy will not contain an exception indicating the existence of a mortgage or other liens affecting the unit insured and any other unit;

(B-3) -original letter from title company stating it has reviewed declaration, bylaws and other relevant documents and is prepared to insure title to purchasers of units in accordance with exhibit B-2;

(B-4) -copy of proposed management agreement;

(B-5) -copies of all contracts which will be binding on the board of managers or board of directors of a homeowners' association, for $2,500 or more per year, such as service, union, washing machine, television antennae, cable television, snow removal, landscaping, security, exterminating, elevator, heating and air conditioning contracts;

(B-6) -copies of proposed insurance policies, including fire, liability, officers' and directors' liability (if any), and other insurance policies including a written opinion from a licensed insurance broker, insurance appraiser or real estate appraiser concerning adequacy of coverage to avoid being a coinsurer;

(B-7) -if a homeowners' association is part of the offering, include copies of certificate of incorporation, receipt from New York Secretary of State or equivalent proof of filing for out-of-state plans, bylaws and other relevant organizational documents;

(B-8) -copy of G.B.L. section 352-b designation of Secretary of State as agent (for out-of-state issuers, sponsors, principals and selling agents);

(B-9) -worksheets which set forth bases for projections and method and calculations used to prepare first-year operating budget;

(B-10) -copies of all professional and commercial leases;

(B-11) -certified rent roll, including the name of each tenant, apartment number, rent, term and termination date of lease, and status under any rent regulatory laws for the month in which the offering plan was submitted to the Department of Law. Indicate vacant apartments and the date on which each such apartment first became vacant. Include an affidavit setting forth the identity of any tenants who are related by blood, marriage or adoption to the sponsor or selling agent, or are principals, employees, shareholders, limited partners or business associates of the sponsor or selling agent;

(B-12) -copy of contract to acquire property if not currently owned by sponsor;

(B-13) -where the condominium is located outside the State of New York, a copy of the statute and regulations, if any, of the state or territory in which it is located governing condominiums or other matters contained in the offering plan;

(B-14) -declaration of submission to condominium ownership or other documents of similar nature;

(B-15) -mortgages relating to the condominium;

(B-16) -agreements or other documents of local taxing authorities relating to the separate assessment of each condominium unit for real estate taxes;

(B-17) -copy of the mortgage and note or bond required by sponsor if sponsor is offering financing, or required by a mortgage lender procured by sponsor, together with any other document which significantly affects a purchaser's obligations for financing offered or procured by sponsor. If the documents are not available at the time of submission to the Department of Law, so indicate and forward when available; and

(B-18) -other material document(s), each of which should be described in transmittal letter.

(C-1) -architect's or engineer's detailed description of the physical aspects of the condominium with the architect's or engineer's stamp and original signature; and

(C-2) -copy of certificate of occupancy, if available.

(D-1) -personal or certified checks for one half the filing fees due under General Business Law section 352-e(7)(a) and the entire amount of the fees due under General Business Law section 359-e(5), both payable to the New York State Department of Law and placed within an envelope together with the form of receipt issued by the Department of Law;

(D-2) -signed M-10 forms, registration for broker-dealer, for the selling agent(s) (orig.), and signed M-2 forms, salesman statement, for all individual employees who act as salesmen for selling agents. Forms do not have to be submitted if currently valid registration forms are on file with the Department of Law from prior public offerings;

(D-3) -signed M-10 form(s), registration for broker-dealer, for all principals of the sponsor (orig.). Forms do not have to be submitted if currently valid registration forms are on file with the Department of Law from prior public offerings;

(D-4) -signed RI-1 forms, registrant information form(s) concerning prior convictions, judgments, administrative actions, bankruptcy, employment and business affiliations for all principals of the sponsor (orig.);

(D-5) -proof of financial responsibility of sponsor (sponsor's certified statement or sponsor's affidavit of net worth) and sponsor's certification that its net worth is sufficient to meet sponsor's unsecured obligations under the plan, including sponsor's obligations for unsold units (orig.);

(D-6) -affidavit from sponsor and principals of sponsor, stating whether sponsor and principals of sponsor have taken part in public offerings of cooperative interests in realty, including condominiums in or from New York which were initially offered during the preceding five years. State the address of the realty and approximate date of the first closing; and

(D-7) -completed statistical information cards available from the Department of Law.