In the state of New Hampshire, certain condos must be registered, while others do not. We understand that rules like this can be a little confusing, so we wanted to share a few details with you to help you out.
Residential Condos
Any residential condo buildings that are comprised of more than ten units must be registered with the Consumer Protection Bureau of the New Hampshire Department of Justice.
As the person creating the condos, you may not sell or rent the condos until they have been properly registered with the state. Thankfully, the registration process is easy, and we will share those details shortly.
Commercial Condos
All commercial condos are exempt from registration requirements. However, if those condos transfer to residential condos at any time, the registration requirements go back into effect.
The State Registration Process
The condo registration process in New Hampshire occurs in phases. The reasoning behind those phases is so the person registering the condos has a little extra flexibility if the market conditions happen to change. Of course, the phases also ensure all issues are addressed accordingly. The Attorney General’s Office always wants to make sure the declarant has the financial means to complete any financial improvements. Those improvements could include the actual units, amenities like the pool or clubhouse, and even the roads throughout the condo complex.
Submission Requirements for Condo Registration in NH
All applicants must submit the following when they are registering condos in the state of New Hampshire:
- Financial statement for the declarant
- All the details for financing the project – this is usually given within a commitment letter
- The cost for completing the units and other improvements
- The proposed budget for the owner’s association for the units
- Detailed information of certain principles of the declarant
- Number of units
- Size of the units
- Whether or not convertible land is involved
- The statuses of any regulatory approvals
- Copies of the declaration
- All bylaws and rules
- Copies of site plans
- Copies of floor plans
- All promotional materials
- All documents that will be submitted to buyers during the closing process
The Public Offering Statement
One other item that must be submitted during the condo registration process is the Public Offering Statement. This statement always includes all of the information from the registration application. It is necessary to be seen prior to the registration being completed, because this same statement is given to every prospective buyer either before they finalize their purchase or during the closing. Once the Public Offering Statement is approved, it cannot be changed prior to being handed out to prospective buyers.
The Timing of Condo Registrations
The registration of condos is normally completed within ninety days. However, this is dependent on all of the necessary information being submitted with the application. If any information is missing, that can delay the completion of the registration process.
While the registration is pending for condo units, the declarant can enter into nonbinding reservation agreements with potential buyers. Those forms must be submitted to the Attorney General and cannot be finalized until the registration process is complete.
Converting Apartments into Condos in New Hampshire
Anytime an apartment building is converted into condos, those units must go through the registration process. There are also a few rules that must be followed in addition to filing the application for registration.
One of the biggest rules is all of the tenants have the right of first refusal to purchase the unit they occupy. Another lease or other contractual agreement cannot be in place until this refusal is given.
Hopefully, this clears up a little confusion as to whether condos need to be registered in the state of New Hampshire. If you have any questions about registering condos in NH, please feel free to contact me today.