(a) A contract for the initial sale of a unit to a member of the public is not enforceable by the vendor unless:
(1) The purchaser is given on or before the time a contract is entered into between the vendor and the purchaser, a current public offering statement as amended and registered with the Secretary of State containing all of the information set forth in subsection (b) of this section; and
(2) The contract of sale contains, in conspicuous type, a notice of:
(i) The purchaser’s right to receive a public offering statement and his rescission rights under this section;
(ii) 1. The warranties provided by § 11–131 of this title; and
2. Whether the council of unit owners has entered into any agreement that settles or releases the council of unit owners’ claims related to common element warranties under § 11–131 of this title; and
(iii) A statement as to whether the vendor has actual knowledge of the presence of asbestos in the condominium, including a description of the location of the asbestos, whether abatement has been performed, and the date of any abatement.
(b) The public offering statement required by subsection (a) of this section shall be sufficient for the purposes of this section if it contains at least the following:
(1) A copy of the proposed contract of sale for the unit;
(2) A copy of the proposed declaration, bylaws, and rules and regulations;
(3) A copy of the proposed articles of incorporation of the council of unit owners, if it is to be incorporated;
(4) A copy of any proposed management contract, insurance contract, employment contract, or other contract affecting the use of, maintenance of, or access to all or part of the condominium to which it is anticipated the unit owners or the council of unit owners will be a party, and a statement of the right of the council of unit owners to terminate contracts entered into during the developer control period under § 11–133 of this title;
(5) A copy of the actual annual operating budget for the condominium or, if no actual operating budget exists, a copy of the projected annual operating budget for the condominium including reasonable details concerning:
(i) The estimated monthly payments by the purchaser for assessments;
(ii) Monthly charges for the use, rental, or lease of any facilities not part of the condominium;
(iii) The amount of the reserve fund for repair and replacement and its intended use; and
(iv) Any initial capital contribution or similar fee, other than assessments for common expenses, to be paid by unit owners to the council of unit owners or vendor, and a statement of how the fees will be used;
(6) A plain language statement of the policy and procedures for collecting assessments and handling collection of delinquencies, including reasonable details concerning:
(i) The number and percentage of unit owners who are delinquent or in arrears in an amount equal to or greater than 50% of the annual assessment of the unit owner;
(ii) The number of unsatisfied liens currently recorded against unit owners under the Maryland Contract Lien Act;
(iii) The number of unsatisfied judgments obtained against unit owners for unpaid assessments; and
(iv) The total amount of arrearages among all unit owners;
(7) A copy of any lease to which it is anticipated the unit owners or the council of unit owners will be a party following closing;
(8) A description of any contemplated expansion of the condominium with a general description of each stage of expansion and the maximum number of units that can be added to the condominium;
(9) A copy of the floor plan of the unit or the proposed condominium plats;
(10) A description of any recreational or other facilities which are to be used by the unit owners or maintained by them or by the council of unit owners, and a statement as to whether or not they are to be part of the common elements;
(11) A statement as to whether streets within the condominium are to be dedicated to public use or maintained by the council of unit owners;
(12) A statement of any judgments against the council of unit owners and the existence of any pending suits to which the council of unit owners is a party;
(13) In the case of a condominium containing buildings substantially completed more than 5 years prior to the filing of the application for registration under § 11–127 of this title, a statement of the physical condition and state of repair of the major structural, mechanical, electrical, and plumbing components of the improvements, to the extent reasonably ascertainable, and estimated costs of repairs for which a present need is disclosed in the statement and a statement of repairs which the vendor intends to make. The vendor is entitled to rely on the reports of architects or engineers authorized to practice their profession in this State;
(14) A description of any provision in the declaration or bylaws limiting or providing for the duration of developer control or requiring the phasing–in of unit owner participation, or a statement that there is no such provision;
(15) If the condominium is one which will be created by the conversion of a rental facility, a copy of the notice and materials required by §§ 11–102.1 and 11–137 of this title;
(16) A statement of whether the unit being purchased is subject to an extended lease under § 11–137 of this title, or local law, and a copy of any extended lease;
(17) A written notice of the unit owner’s responsibility for the council of unit owners’ property insurance deductible and the amount of the deductible; and
(18) Any other information required by regulation duly adopted and issued by the Secretary of State.
(c) A person may not advertise or represent that the Secretary of State has approved or recommended the condominium, the public offering statement, or any of the documents contained in the application for registration.
(d) (1) Following execution of a contract of sale by a purchaser, the vendor may not amend any of the material required to be furnished by subsection (a) of this section without the approval of the purchaser if the amendment would affect materially the rights of the purchaser.
(2) Approval is not required if the amendment is required by any governmental authority or public utility, or if the amendment is made as a result of actions beyond the control of the vendor or in the ordinary course of affairs of the council of unit owners.
(3) A copy of any amendments shall be delivered promptly to any purchaser and to the Secretary of State.
(e) (1) Any purchaser may at any time (i) within 15 days following receipt of all of the information required under subsection (b) of this section or the signing of the contract, whichever is later; and (ii) within 5 days following receipt of the information required under subsection (d) of this section, rescind in writing the contract of sale without stating any reason and without any liability on his part, and he shall be entitled to the return of any deposits made on account of the contract.
(2) The return of any deposits held in trust by a licensed real estate broker to a purchaser under this subsection shall comply with the procedures set forth in § 17–505 of the Business Occupations and Professions Article.
(f) Any vendor who, in disclosing the information required under subsections (a) and (b) of this section, makes any untrue statement of a material fact, or omits to state a material fact necessary in order to make the statements made, in the light of circumstances under which they were made, not misleading, shall be liable to any person purchasing a unit from the vendor for those damages proximately caused by the vendor’s untrue statement or omission. However, an action may not be maintained to enforce any liability created under this section unless brought within 1 year after the facts constituting the cause of action are or should have been discovered.
(g) The rights of a purchaser under this section may not be waived in the contract of sale and any attempted waiver is void. However, if any purchaser proceeds to closing, his right under this section to rescind is terminated.
(h) This section does not apply to the sale of any unit which is to be occupied and used for nonresidential purposes.
(i) This section applies to the sale of any unit offered for sale in the State without regard to the location of the condominium.
(j) The provisions of this section do not apply to a sale of a unit in an action to foreclose a mortgage or deed of trust.