HB410 Alabama 2015 Session

Under existing law, after the time has passed for a purchaser to cancel a condominium contract, certain deposits may be withdrawn for construction purposes.

This bill would define certain terms involved in a condominium contract.

This bill would require that the escrow agent be located in state and that a declarant may accept a letter of credit in lieu of a portion or all of the deposit.

This bill would allow a declarant to withdraw certain deposits to pay hard costs associated with construction under certain circumstances and would limit the withdrawal.

This bill would require that the contract provide clear written notice that certain deposits may be used for certain hard costs.

To amend Section 35-8A-410, Code of Alabama 1975, relating to the Alabama Uniform Condominium Act; to define certain terms relating to escrow and building costs; to specify conditions of escrow deposit and use; and to require written notice in the contract that deposits may be used under certain conditions.