Real Estate Law Update: Technical Amendments to the DUCIOA
July 15, 2010
Publication| Real Estate Services
On July 12, 2010, Governor Markell signed into law House Bill 475, which makes certain technical amendments to the Delaware Uniform Common Interest Ownership Act. In particular, the legislation clarifies that small common interest communities, meaning those not having more than 20 units, qualify for almost complete exemption from DUCIOA, even if those communities are built in phases. Importantly, such small communities are not liable for providing public offering statements. The legislation also makes minor changes to the resale certificate due at the time of the sale of a unit in a common interest community, by extending the number of days that a resale certificate is valid from 90 days to 120 days, and by adding a new disclosure on the resale certificate to advise the purchaser if there are any fees payable to the community association at closing. In addition, the legislation clarifies that a purchaser has a right to cancel the sales contract within five days after receiving the resale certificate if the certificate was not received before the contract was signed. Finally, the legislation eases some of the burdens for existing condominiums, which are still governed by the Unit Property Act, to have a fully funded replacement reserve. The legislation will become effective on August 11, 2010.