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AL HB410
Bill
Status
4/2/2015
Primary Sponsor
Randy Davis
Click for details
AI Summary
HB410 Summary
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Requires escrow agents for condominium deposits to be located in Alabama, and permits declarants to accept letters of credit in lieu of deposits.
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Defines "hard costs" as direct construction expenses (site preparation, materials, systems, fixtures) excluding financing, professional fees, and marketing.
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Allows declarants to withdraw deposits exceeding 10 percent of purchase price for hard costs if the purchaser is a "qualified purchaser" (individual with $200,000+ annual income or $300,000+ joint income, or $1,000,000+ net worth).
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Requires declarants to either maintain 10 percent of purchase price on deposit or post a surety bond covering withdrawn funds, with bond payable to purchaser upon final judgment.
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Mandates clear written notice in purchase contracts and offering statements stating "DEPOSITS MAY BE USED BY DECLARANT FOR HARD COSTS INCURRED IN THE ACTUAL BUILDING AND CONSTRUCTION OF THE CONDOMINIUM PROJECT."
Legislative Description
Uniform Condominium Act, define terms, required in state escrow agent, withdrawals limited, written notice required, Sec. 35-8A-410 am'd.
Condominiums
Last Action
Read for the first time and referred to the House of Representatives committee on Commerce and Small Business
4/2/2015