5480

COUNTY LOCAL LAWS

THE COUNTY COUNCIL FOR MONTGOMERY COUNTY HEREBY
FINDS THAT THERE IS AN INCREASING PERCENTAGE OF
CONSTRUCTION OF RESIDENTIAL UNITS IN THE COUNTY THAT ARE
INTENDED FOR CONDOMINIUM DEVELOPMENT AND FURTHER THAT A
CONSIDERABLE PORTION OF THE COUNTY'S RENTAL HOUSING IS
BEING CONVERTED TO CONDOMINIUM STATUS; THAT PROSPECTIVE
PURCHASERS OF THESE CONDOMINIUM UNITS ARE OFTEN WITHOUT
KNOWLEDGE OF THE UNIQUE CONCEPTS OF OWNERSHIP INVOLVED IN
CONDOMINIUM HOUSING; THAT OFTEN THERE IS UNEQUAL
BARGAINING POWER BETWEEN BUYERS AND SELLERS OF
CONDOMINIUM UNITS; THAT OFTEN THE BUYERS HAVE LITTLE
FACTUAL BASIS PRESENTED TO THEM ON WHICH TO MAKE A
DECISION; THAT THE COUNCIL IS AWARE OF REPORTED ABUSES BY
SELLERS OF CONDOMINIUM UNITS; THAT IN ORDER TO FACILITATE
FAIR AND EQUITABLE BARGAINING AND TO PROVIDE THE BUYERS
OF CONDOMINIUM UNITS WITH BASIC INFORMATION BY WHICH TO
MAKE AN INTELLIGENT HOUSING CHOICE AND PROMOTE THE
HEALTH, SAFETY AND WELFARE OF THE PEOPLE, IT IS NECESSARY
AND APPROPRIATE FOR THE COUNTY TO REQUIRE THAT SELLERS OF
CONDOMINIUM UNITS PREPARE AND DISTRIBUTE INFORMATION
DEEMED RELEVANT TO THE BUYERS OF THIS TYPE OF RESIDENTIAL
PROPERTY,

11A-2. DEFINITIONS.

FOR THE PURPOSES OF THIS CHAPTER, THE FOLLOWING
WORDS AND PHRASES SHALL HAVE THE MEANINGS RESPECTIVELY
ASCRIBED TO THEM BY THIS SECTION:

(1)    AGENT: THE WORD "AGENT" MEANS ANY PERSON,
FIRM, PARTNERSHIP, ASSOCIATION, JOINT VENTURE,
CORPORATION OR ANY OTHER ENTITY OR COMBINATION OF
ENTITIES WHO REPRESENTS OR ACTS FOR OR ON BEHALF OF A
DEVELOPER IN SELLING OR OFFERING TO SELL ANY CONDOMINIUM
UNITS.

(2)    BLANKET ENCUMBRANCE: THE PHRASE "BLANKET
ENCUMBRANCE" MEANS A TRUST DEED, MORTGAGE, JUDGEMENT OR
OTHER LIEN OR ENCUMBRANCE INCLUDING AN OPTION OR CONTRACT
TO SELL OR A TRUST AGREEMENT AFFECTING A CONDOMINIUM
INCLUDING ANY LIEN OR OTHER ENCUMBRANCE ARISING AS A
RESULT OF THE IMPOSITION OF ANY TAX ASSESSMENT BY A
PUBLIC AUTHORITY.

(3)    CLOSING OF THE SALE: THE PHRASE "CLOSING OF
THE SALE" MEANS THE OPERATION OF TRANSFERRING OWNERSHIP
OF A CONDOMINIUM UNIT TO THE PROSPECTIVE PURCHASER FROM
THE DEVELOPER THROUGH A DEED OF CONVEYANCE.

(4)    COMMON ELEMENTS: THE PHRASE "COMMON ELEMENTS"
MEANS ALL OF THE CONDOMINIUM EXCEPT THE CONDOMINIUM
UNITS.

A. LIMITED COMMON ELEMENTS: THE PHRASE