Section 559.903. Information to be included in the disclosure statement.

(1) The disclosure  statement  shall  fully   and  accurately disclose those facts or characteristics about a condominium project and a developer which are deemed material. "Material," as used in the preceding sentence,  refers  to  those factors which might reasonably affect a prospective purchaser's decision to accept or reject the offer to purchase the condominium unit. Where material information is not known   by   the developer, such facts shall be stated with a brief explanation.

(2)   The information presented in the disclosure statement shall  not obscure  the facts,  encourage   a  misinterpretation   of  the  facts,   or otherwise mislead the reader. No information  is  to   be  incorporated   by reference to an extrinsic source which is not readily  available  to    an ordinary prospective purchaser.

(3)     The  language   of the  disclosure   statement  shall   be   readily understandable by a lay person. Legal phraseology, technical terms, and terms of art are to be avoided where possible.

(4)   Brevity is desirable to the extent consistent with the purpose of the disclosure statement and the rules governing its preparation. Thus, the contents of the disclosure statement shall be  limited  to  factual information.

(5)   The disclosure statement shall contain a cover page and a table of contents which identifies the sections and subsections  of   the   disclosure statement.

(6)   Material information about the developer and the condominium project within the following categories shall be included in the  disclosure statement, when applicable:

(a)   Condominium project warranties.

(b)   The size and scope of the condominium project.

(c)   The condominium project budget and assessments.

(d)  The condominium project recreational facilities.

(e)   Condominium project restrictions.

(f)  The developer's background and experience.

(g)     Legal proceedings involving the condominium   project     or     the developer.

(h)   Condominium association management contracts.

(i)    Other material information   as    will   inform      purchasers     about      the unique characteristics of the particular condominium project.

(7)   Pursuant to section 101 of the act, the disclosure statement shall contain an explanation of the possible liability of co-owners under section 58 of the act. A statement similar to the following shall be included within the disclosure statement: "Co-owner liability. Section 58 of the Michigan condominium act provides: If the holder  of  a  first mortgage or other purchaser of a condominium unit obtains  title  to that unit by foreclosing that mortgage, the holder of the first mortgage or other purchaser is not liable for unpaid assessments which are chargeable against that unit and which had become due prior to foreclosure. These unpaid assessments are common expenses which are collectable from all unit owners, including the holder of the first mortgage who has obtained title to the unit through foreclosure."

(8)    If a project is a   conversion   condominium     project,     the      developer shall disclose the following additional information:

(a)   The  year  when   construction  was  completed  on    the    building     or buildings in the project.

(b)    A statement, if known, of the condition of the main components of the building, including the plumbing, heating, electrical, roofing, and  structural components. If the condition of the plumbing, heating, electrical, roofing and structural components is  unknown,  the   developer shall fully disclose that fact.

History: 1979 AC; 1985 AACS.