SENATE DOCKET, NO. 2467 FILED ON: 3/16/2010
SENATE . . . . . . . . . . . . . . No. 2325
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The Commonwealth of Massachusetts
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In the Year Two Thousand Ten
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An Act establishing transparency during the purchasing of a condominium unit.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
SECTION 1. Chapter 112 of the General Laws is hereby amended by inserting after section 87DDD1/2 the following section:-
Section 87DDD3/4. Real estate brokers representing the seller of a condominium unit shall be required to distribute to a prospective purchaser of a condominium unit, upon submittal of a written offer to purchase a condominium unit, the document outlining key rights and responsibilities of a condominium unit owner created by the office of consumer affairs and business regulation as required in section 23 of chapter 183A.
SECTION 2. Section 1 of chapter 183A of the General Laws, as appearing in the 2008 Official Edition, is hereby amended by striking out the definitions of “Building” and inserting in place thereof the following 2 definitions:-
“Building”, any building containing one or more units comprising a part of the condominium.
“Alternative dispute resolution,” a confidential process in which a neutral person assists disputing parties in identifying and discussing issues of concern, exploring various solutions and developing a settlement that is mutually acceptable to them.
SECTION 3. Said section 1 of said chapter 183A of the General Laws is hereby further amended by inserting after the definition of “Condominium”, the following definition:-
“Condominium documents and financial records,” all records required by subsection (c) of section 10 to be maintained by the organization of unit owners.
SECTION 4. Chapter 183A of the General Laws is hereby amended by inserting after Section 22 the following 2 sections:
Section 23. The office of consumer affairs and business regulations shall create a document outlining key rights and responsibilities of a condominium unit owner, to be distributed to a prospective purchaser by their real estate broker, as defined in section 87PP of chapter 112, upon submittal of a written offer to purchase a condominium unit. The disclosure of information hereunder shall be set forth in a clear and conspicuous manner and shall include, but not be limited to, the following:
(a) The right of unit owners to access condominium documents and financial records and the ability of a prospective purchaser to request said documents from the unit owner;
(b) The ability of the organization of unit owners to make changes to existing rules, regulations, dues, fees, fines, and special assessments;
(c) The rights of unit owners to participate in the governance of the organization of unit owners as provided under the terms of the master deed and bylaws;
(d) The responsibility of unit owners to pay dues, fees, fines, and special assessments issued by the organization of unit owners and associated penalties for failure to pay;
(e) The rights and responsibilities of unit owners regarding the payment of legal fees in disputes between individual unit owners and the organization of unit owners; and
(f)The rights of unit owners to request alternative dispute resolution (ADR) when a dispute arises between one or more unit owners and the organization of unit owners.
Section 24. Real estate broker, as defined in section 87PP of chapter 112, representing the seller, shall provide to the prospective purchaser the document provided by the office of consumer affairs and business regulations under section 23 upon the submission of a written offer to purchase a condominium unit. The prospective purchaser will sign confirmation of reception of the required information, and may rescind said offer within 7 calendar days of receiving the information required by the office of consumer affairs and business regulations, without penalty. An offer to purchase shall not be binding if the prospective purchaser has not been delivered the documents required by the office of consumer affairs and business regulations.