All residential condominiums containing more than ten units must be registered with the Consumer Protection Bureau of the New Hampshire Department of Justice, otherwise known as the Attorney General. No declarant (the person or entity creating the condominium) may offer or dispose of a unit until the phase in which the unit is to be located is registered.
Commercial condominiums are exempt from registration. Additional rules apply to the conversion of apartment buildings to condominiums.
Registration usually takes place in phases. Phasing a condominium gives the declarant greater flexibility should market conditions change. Phasing also makes the task of showing the financial ability to complete promised improvements, whether they be the units themselves, roads, or amenities such as clubhouses and swimming pools, easier.
- details on financing for the project (a commitment letter usually is sufficient)
- the cost to complete the units and other unfinished improvements,
- a financial statement for the declarant
- the proposed budget for the unit owners’ association
- detailed information on the backgrounds of certain principals of the declarant
Other Required Details
The application also asks for other details about the project, such as the number and size of the units, whether convertible land is involved, the status of all regulatory approvals, copies of the declaration, bylaws and rules, and copies of the site and floor plans. Promotional materials and documents submitted to buyers at closing must be submitted as well.
Public Offering Statement
An applicant also must submit a Public Offering Statement. The Public Offering Statement sets forth in narrative form much of the information referenced or contained in the application, and it must be furnished to a prospective buyer at or prior to the time of execution of a purchase and sale agreement for a unit.
Once an application is filed, registration usually can be expected within ninety days. Pending registration, declarants may enter into nonbinding reservation agreements with potential buyers, the form of which must first be submitted to the Attorney General.
Registration also is required for the conversion of residential apartments to condominiums. Some additional rules apply, the most notable being that tenants have the right of first refusal to purchase the unit they occupy pursuant to a lease “or other contractual arrangement.”
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For further information or to inquire about representation, please contact Paul J. Alfano, at 603-226-1188.