The Sales and Marketing Council hosted its October meeting, sponsored by Carroll Rogers Carpet One, Century Mortgage Company, and Semonin Realty at the new offices of Semonin Realty. There were many familiar and new members who attended to learn about the changes to the Condo Laws, which were presented by a panel. Panelists included Steph Horne, Agency Title; Nick Pregliasco, Bardenwerper, Talbott, and Roberts PPL; and Rocky Pusateri, Elite Homes.
Horne, who is credited by many for leading the efforts to re-write the law, with the help of Pregliasco informed attendees about the most significant changes. According to Horne the new condo act was signed into law on January 1, 2011 and is based on the uniform condo act, a statute that was adopted in 1980. The previous version of the Act applies to condo regimes formed under the old law with a few exceptions. The most significant retroactive provision is that the declarant must turn over the development to the Condo Association after one of the following conditions is met: 75% of units are sold; two years lapse after the last unit is sold; or seven years after the project was first started.
Also important is the issuance of a resale certificate, which is applicable to all condos. According to Pregliasco it is the unit owner’s responsibility to provide the fees for the seller’s certificate. The certificate is a worksheet that is provided by the lender and must be completed by the Home Owners Association leadership. These forms must be accurately completed in order for a financial institution to consider such properties for financing. It was noted during the meeting that the Greater Louisville Association of Realtors’ Forms Committee is considering the forms required for the Resale Certificate and hope to be able to qualify them to be part of the standard contract.
Pusateri provided an example of how Elite Homes, Inc. has creatively worked on condo developments during the downturn. Financing continues to be problematic for borrowers in these types of developments. Elite has worked with local government agents to rezone the condo regime developments to Planned Residential Developments, which allow for attached buildings to have zero lot lines, which essentially allow them to be financed as a single family home.