05 Jun The Public Offering Statement Part 1
A public offering statement is a disclosure by the developer that includes everything from warranties to closing fees to construction details. It applies only to the first owner of the property and is just as important as the association CC&Rs.
Is there water leaking through a window seam? Are the patio doors unable to lock securely because of incorrect installation? Have owners identified a global construction defect? The public offering is how the first owners and developer will resolve each and every issue with the newly constructed homes.
It’s also in this document that the developer identifies community plans. For an owner that buys while the subdivision is under construction, this confirms what to expect when the building is finished. And it often goes beyond the pool, tennis courts and RV parking. The public offering may also include information about parks and schools and whether those will be maintained by the association or the city.
The simple truth is that construction projects can take 10 or more years to complete and over time changes may occur to the design. But this doesn’t mean the public offering becomes null and void. In fact, it can be more important at the conclusion of the build than it was at the beginning.
See Part 2 of our Public Offering posts to learn about what can happen when the Public Offering Statement isn’t honored.