Public Offering Statement

 

 

 

 

 

 

                             

PUBLIC OFFERING STATEMENT

 

 

CARRIAGE HOMES ON THE POND

 

 

Brookfield, Connecticut

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Declarant:

 

Carriage Homes on the Pond, LLC

246 Federal Road, suite D-25

Brookfield, Connecticut 06804

 

 

 

 

 

 

 

 

 

 

                                               CARRIAGE HOMES ON THE POND

 

                                                 PUBLIC OFFERING STATEMENT

 

                                                                    SUMMARY

 

            This Public Offering Statement is made pursuant to the provisions of Chapter 828 of the Connecticut General Statutes, known as the "Common Interest Ownership Act" as amended, (the "Act").

 

            A Common Interest Community is defined as real property described in a declaration, with respect to which a person, by virtue of his ownership of a unit, is obligated to pay for real property taxes on, insurance premiums on, maintenance obligations of, or improvement of, any other real property other than that unit described in the declaration.  One type of Common Interest Community under the Act is a Condominium, which is defined as a Common Interest Community in which portions of the real property are designated for separate ownership and the remainder of the real property is designated for common ownership solely by the owners of those portions.  Carriage Homes on the Pond is a Condominium and, as such, is subject to the terms and conditions of the Act.

 

            The purpose of this Public Offering Statement is to disclose the characteristics of Carriage Homes on the Pond, fully and accurately, and to attempt to advise prospective purchasers of any unusual and material circumstances affecting Carriage Homes on the Pond.

 

            Wherever in this Public Offering Statement capitalized terms are not defined, such terms shall have the meanings ascribed to such terms in the Act or the Declaration, both as the same may be amended from time to time.

 

Carriage Homes on the Pond, LLC (the "Declarant"), will declare one (1) Unit, which it hereby offers for sale, by filing a Declaration of Carriage Homes on the Pond (the "Declaration") in the Brookfield Land Records. The Declarant anticipates filing the original Declaration in the Brookfield Land Records upon the sale of the first Unit in Carriage Homes on the Pond.

 

A copy of the proposed Declaration of Carriage Homes on the Pond is attached hereto as Exhibit A.  Said Declaration is the document which will be recorded in the Brookfield Land Records, thereby submitting the land described therein to the provisions of the Act.  The Declaration should be reviewed carefully.  The land declared is specifically described in Schedule A to the Declaration and the Survey attached thereto as Schedule B.  As additional Units are declared, the Declarant will record Amendments to the Declaration on the Brookfield Land Records.

 

 

            The Survey helps to show the dimensions of the Units that have been declared.  In Carriage Homes on the Pond, a Unit is that real property consisting of the space filled with air above the surface of the land, with all rights of ownership and possession in such air space and in the buildings and other Improvements now lying within such air space, or to be constructed within such air space, within the vertical boundaries defined by the Unit lines, as more particularly shown on the Survey, extended to the heavens.  The boundaries of the Units are more fully described in the Declaration and on the Survey.  Because the Units for Carriage Homes on the Pond are defined in this manner, and do not themselves constitute the residences to be built by the Declarant, no house plans are required to be included as part of the Declaration.   

 

            The Declarant intends to build a single family residence on each Unit, together with related improvements, based upon options selected by each purchaser, but subject to the provisions of this Public Offering Statement, the Declaration, and the purchase agreement executed by and between the Declarant and any such purchaser. While it is not the Declarant's intention to do so, the Declarant reserves the right to sell any Unit in its undeveloped condition.  In such case, the provisions of the Declaration will apply to any residence and related improvements that are built within such Unit by the purchaser of such Unit or any subsequent owner of such Unit.  All of the foregoing is set forth in more detail elsewhere in this Public Offering Statement and in the Declaration.

 

            At the closing for each Unit at Carriage Homes on the Pond, the Declarant will deliver to the purchaser a survey of the Unit, showing the location of the residence built within the Unit by the Declarant, as well as a certificate of occupancy from the Town of Brookfield, evidencing the substantial completion of such residence.

 

            The Declarant reserves the right to establish and to change its sales prices.  In the event that the Declarant changes the sales price of one or more Units, the purchasers of such Units may pay, or may have paid, more or less than other purchasers of comparable Units.  However, such price change shall not alter the allocated interest of, or the amount of the Common Charges payable by, the owners of such Units.

 

            The ownership of a Unit in Carriage Homes on the Pond is in most respects the same as the ownership of a private single family residence.  Unit Owners will own fee title to their Units and are entitled to exclusive possession thereof.  Each Unit Owner may freely mortgage his or her Unit or not, as he or she sees fit, with such lender and in such amount, as he or she chooses.  Each Unit is separate and is not subject to the lien of any mortgage placed on any other Unit.  Pursuant to the Act, each Unit will be taxed separately for real estate tax and assessment purposes, and each Unit Owner will be solely responsible for the payment of all real estate taxes and assessments on his or her Unit.  No Unit Owner will be liable for the payment of, and no Unit will be subject to any lien arising out of the non-payment of, real estate taxes or assessments levied against any other Unit.

 

            Any Unit Owner may sell or lease his or her Unit subject to the restrictions contained in the Declaration.

 

            In addition to owning his or her Unit, each Unit Owner will own, in common with every other Unit Owner, an allocated interest in the Common Elements. The Common Elements consist of all portions of the Common Interest Community other than the Units and are more fully described in the Declaration.

 

            The Common Expenses are those expenses which relate to the operation of the Common Interest Community.  Each Unit Owner will be required to pay a proportionate share of the Common Expenses.  The Declaration sets forth the method of fixing the amount of Common Expenses to be paid by each Unit Owner.  A prospective purchaser should refer to the proposed budget attached hereto as Exhibit F for specific information as to the estimated Common Expenses pertaining to each Unit.  The budget has been prepared on the basis of information presently available.  It is a hypothetical budget based on the experience of the proposed management company in similar communities. 

 

            The division of maintenance, repair and replacement responsibilities between the Unit Owner and the Association, with respect to Units, Common Elements, and Limited Common Elements, is described in general terms in this Public Offering Statement and in greater detail in the Declaration.

 

            The Association has a lien on each Unit for the Common Expenses assessed against each Unit.  This is more fully described in the Declaration.

 

            Unit Owners have the right to participate in the governance of Carriage Homes on the Pond.  Upon acquiring title to his or her Unit, each Unit Owner automatically becomes a member of Carriage Homes on the Pond Association, Inc., a Connecticut non‑stock corporation which will operate the Common Elements of Carriage Homes on the Pond.

 

            A general description of the insurance policies to be carried by the Association with respect to the Common Interest Community, to the extent reasonably available, is set forth in Article XV of this Public Offering Statement.

           

The Declarant has reserved certain Development Rights as more particularly set forth in the Act with regard to the Community which will allow it to develop a total of twenty-four (24) Units on the site.  In the event that the Declarant elects to develop additional Units it has reserved the right in accordance with the Act to reallocate the percentage of common ownership relative to each individual Unit.  The Development Rights reserved by the Declarant are more particularly described herein.

           

            The Declarant's sales agents and other representatives are prohibited from changing or varying any information in any portion of this Public Offering Statement or the attached documents. In addition, the Declarant's sales agents and other representatives are prohibited from changing any of the features of the Common Interest Community and from interpreting the legal effect of this Public Offering Statement, the Declaration, the Bylaws, or any other related documents, schedules and exhibits.

 

            THE INFORMATION SET FORTH HEREIN IS SUMMARY IN NATURE.  A PROSPECTIVE PURCHASER SHOULD REFER TO ALL REFERENCED DOCUMENTS, EXHIBITS, AND SCHEDULES AS WELL AS THE ENTIRE SET OF DISCLOSURE MATERIALS, AGREEMENTS AND CONTRACTS, INCLUDING THE PURCHASE AGREEMENT.  STATEMENTS MADE REGARDING THE PROVISIONS OF SUCH DISCLOSURE MATERIALS, AGREEMENTS AND CONTRACTS ARE QUALIFIED IN ALL RESPECTS BY THE CONTENTS OF SUCH DOCUMENTS AND, IN THE CASE OF ANY SUCH DOCUMENTS EXECUTED BY OR WITH THE WRITTEN CONSENT OF A PURCHASER PURSUANT TO THIS PUBLIC OFFERING STATEMENT, ANY RIDER OR SEPARATE AGREEMENT CHANGING OR ADDING PROVISIONS TO SUCH DOCUMENTS.  IF THIS PUBLIC OFFERING STATEMENT, OR ANY OF THE OTHER DISCLOSURE MATERIALS, AGREEMENTS AND CONTRACTS, ALL OF WHICH ARE IMPORTANT DOCUMENTS, ARE NOT UNDERSTOOD BY THE PROSPECTIVE PURCHASER, HE OR SHE SHOULD SEEK COMPETENT ADVICE.

 

            The following information is set forth in a format which follows that contained in Section 47‑264 of the Connecticut General Statutes.  Although certain portions of information contained in other documentation will be summarized in this Public Offering Statement, the original documents referred to herein should be consulted at all times.


SECTION ONE

                                  SPECIFIC STATUTORY INFORMATION REQUIRED

                                     FOR ALL COMMON INTEREST COMMUNITIES

          

 I.         a.         Declarant:

 

                        CARRIAGE HOMES ON THE POND, LLC

                        246 Federal Road Suite D-25

                        Brookfield, Connecticut 06804

 

            b.         Name and Address of the Common Interest Community:

   

                        Carriage Homes on the Pond

                        Fairfield Drive

                        Brookfield, Connecticut 06804

   

            c.         Type of Common Interest Community:

   

                        Carriage Homes on the Pond is a Condominium.

   

 II.        Description of the Common Interest Community

 

              Carriage Homes on the Pond consists of a tract of land located of approximately 25.377 acres with an entrance off of the northerly end of Fairfield Drive in Brookfield, Connecticut.

 

            a.         Types and Number of Buildings and Amenities:

    

            The Declarant intends to build a single-family residence on each Unit, together with related improvements, based upon options selected by each purchaser.

                                   

            Although, for reasons set forth above, house plans are not required to be included with the Declaration, plans containing the typical footprint for each type of residence are available from the sales agents and other representatives of the Declarant.  The residence type being purchased, and a list of the basic specifications for such residence type, will be set forth in each purchase agreement for a Unit.

 

            Each residence will have a two car garage and an unfinished basement/cellar, unless a particular purchaser elects, for additional consideration, to upgrade his or her residence to one containing a finished basement/cellar, in which case the terms and cost of such upgrade shall be contained in the purchase agreement with such purchaser. Some basements/cellars may be walk‑outs, others will be entirely below grade, all depending upon grade conditions within each Unit.

 

            Each residence will be separately metered for electricity which will be [DKS1] supplied by The Connecticut Light and Power Company, and the charges shall be paid by the Unit Owner directly to that utility company.

 

            Each residence will be pre‑wired for telephone and cable.

 

            Each Unit will have its own private well located within the Unit which will be maintained by the Unit Owner whose residence is served by the well. 

 

            Sanitary sewage disposal will be by individual septic systems to be located within each Unit.  Most of such septic systems will consist of remote septic fields which are accessed from the residences via piping which run in three foot (3’) wide strips of land.  The area containing the fields, as well the strip of land containing the line, are a part of the Unit, as shown on the Survey.  The septic system for each residence (including the septic field and piping) will be maintained by the Unit Owner whose residence is served by the system.  In the event that a Unit Owner does not maintain his or her septic system the Association may do so at the expense of the Unit Owner and may assess the cost of such maintenance against the Unit Owner in question as a Common Expense.  Periodic cleaning of septic tanks (once every three (3) years) will be contracted through the Association on behalf of Unit Owners and paid for as a Common Expense.

 

            Refuse disposal will be from trash barrels and recycling containers located at each residence.  It is presently anticipated that this service will be contracted through the Association on behalf of Unit Owners but billed directly to Unit Owners. 

 

Carriage Homes on the Pond may contain walking trails in the Common Elements in locations to be selected by the Declarant  which may be linked to trail systems located in other communities that are adjacent to Carriage Homes on the Pond, and therefore may be used by the general public.  The Declarant has reserved the right to grant easements to others with respect to said walking trails.

 

Carriage Homes on the Pond will contain areas of open space, to the extent and in the locations, shown on the Survey.  All areas shown as "open space", or similar designation, on the Survey, shall be left in their present natural state and shall not be disturbed or altered in any way including, but not limited to, the cutting of trees, brush or other vegetation or the change of grade by fill or excavation, except as permitted by regulatory agencies of the Town of Brookfield or State of Connecticut and except for the creation and maintenance of walking trails as shown on the Survey. Further, the Declarant has reserved the right to clear and [DKS2] grade in the Open Space areas as necessary to complete Improvements and to construct residences and appurtenances in the Condominium.

 

            Access to Carriage Homes on the Pond shall be via Fairfield Drive which is a public street.  The roads within the Carriage Homes on the Pond will be private roads which will be known as Carriage House Lane and Black Swan Court.

 

            Emergency access shall be provided from Newman Place over a roadway to be maintained by the Association.  This roadway will have breakaway chains to prevent unauthorized use.

 

            b.         Schedule of Commencement and Completion of Buildings and Amenities.

 

            The Declarant commenced construction of residences and/or related improvements in November 2002.  The Declarant anticipates completing construction of the residences to be located on the Units by December 31, 2005.   It is anticipated that the walking trails will be created by the time of the sale of the last Unit in Carriage Homes on the Pond in locations to be determined by the Declarant. No assurances, however, are given that this construction schedule will be followed, or this timetable met. All residences and the walking trails NEED NOT BE BUILT and may be built in any order, at any time, and with no particular schedule of commencement or completion, and no assurances are given that they will be built or completed. However, if built, they will be located in a location within each Unit to be determined by the Declarant and in an architectural style that is similar to, or consistent with, the character of the model homes, if any,[DKS3]  built by the Declarant. While it is not the Declarant's intention to do so, the Declarant reserves the right to sell any Unit in its undeveloped condition.  In such case, the provisions of the Declaration will apply to any residence and related improvements that are built within such Unit by the purchaser of such Unit or any subsequent owner of such Unit.

 

III.        Number of Units in the Condominium:

 

            Upon the recording of the Declaration of Carriage Homes on the Pond, there will be one (1) Unit  in the Condominium.  Although no assurances are given as to the extent, if any, of future development beyond the above-mentioned Unit, with or without a residence contained therein, the Declarant has retained development rights to create twenty-three (23) additional Units, for a total of up to twenty-four (24) Units.

 

The determination as to which Units shall be developed, the residence type and their location, shall be made by the Declarant in its sole discretion. The Declarant intends to build residences and add Units to the Common Interest Community as and when called for by the demand of prospective purchasers. While the Declarant contemplates exercising its Special Declarant Rights to build homes and create Units in an expeditious manner, it may be done over a period of time not to exceed fifteen (15) years from the recordation of the Declaration in the Brookfield Land Records.  NO ASSURANCES ARE MADE REGARDING THE COMPOSITION OF THE CONDOMINIUM BEYOND THE

 

ONE (1) UNIT CREATED BY THE DECLARATION ANNEXED HERETO, WITH OR WITHOUT RESIDENCE CONTAINED THEREIN.

 

FURTHERMORE, SUBJECT TO THE REQUIREMENTS OF THE ACT, THE DECLARANT RESERVES THE RIGHT TO:

 

            A.         Add more property to the Condominium;

            B.        Create Units or Common Elements within the Condominium;

            C.        Subdivide Units or convert Units into Common Elements; or

            D.        Withdraw real property from the Condominium at its discretion.

 

During development, the Declarant may market and sell Units in subsequent sections which are not described in the exhibits attached hereto, provided that the purchase agreements with respect to said Units describe the Units to be conveyed. 

 

 IV.       Documents:

 

            Unless otherwise noted, the following documents are attached to this Public Offering Statement and incorporated by reference:

 

            a.         Declaration:  The Declaration is attached as Exhibit A.  The Declaration includes the initial rules and regulations of the Condominium, all of which are designated as "Restrictions on Use, Alienation and Occupancy" in Article X of the Declaration.  The following Schedules are attached to the Declaration:

 

                        i.          The Legal Description of the Condominium parcel is Schedule A.

    

                        ii.         The Table of Interests is Schedule B.

    

                        iii.        The Survey, which shows the land which will be subject to the terms and conditions of the Declaration, and the locations of the Units, is Schedule C. 

                       

            b.         Recorded covenants, conditions, restrictions and reservations created by the Declarant:

 

            Article VIII of this Public Offering Statement lists the covenants, conditions, restrictions and reservations which affect the title to each Unit in the Condominium.

 

            As set forth in Article VIII, most Units will be subject to cross easements in favor of other Units for the purpose of accessing portions of the Units’ remote septic systems for maintenance and repair.  Such easements are created in the Declaration. Because portions of the Units that contain the piping for the remote septic system cross the roads and the emergency accessway within the Condominium, those Units with remote septic systems are further subject to the rights of all Unit Owners to pass and repass over such portions. 

 

            The Declarant has reserved the right to grant easements to public utility companies, state and/or local municipalities, agencies, commissions or boards, and to convey Improvements within those easements anywhere in the Common Interest Community.   The Declarant has also reserved the right to grant easements to others who do not own interests in the Condominium over the walking trails in the Condominium.  These easements will be recorded on the Brookfield Land Records if and when they are granted by the Declarant.

 

            c.         Bylaws:

    

            The Bylaws of Carriage Homes on the Pond Association, Inc. are attached hereto as Exhibit B.

 

            d.         Deed:

    

            The form of deed to be delivered to a purchaser at closing is attached hereto as Exhibit C.  It will be a Connecticut form Warranty Deed.  It will contain the number of a purchaser's Unit and will be dated, executed, witnessed and acknowledged in recordable form.  Title will be conveyed to the purchaser as set forth in the purchase agreement.

 

            e.         Contracts and leases to be signed by the purchasers at closing:

 

                        (i)        There are no leases or contracts to be executed by purchasers at closing.

 

                        (ii)       An Affidavit of Purchaser to the effect that the purchase agreement has not been voided pursuant to Section 47‑269 of the Connecticut General Statutes, and for other purposes described therein, a copy of which is attached hereto as Exhibit D, will be signed by each purchaser at closing.

 

            f.          Contracts or leases that will or may be subject to cancellation by the Association:

 

            As of the date of this Public Offering Statement, there are no contracts or leases that will or may be subject to cancellation by the Association.  The Declarant is contemplating entering into a property management agreement with REI Property and Asset Management, Inc.  A copy of the proposed management agreement is annexed hereto as Exhibit E. The Declarant may also enter into a contract for the provision of refuse removal services for the Condominium.

 

V.         Projected Budget for the Association:

 

            The budget for the first twelve months of operation after the first conveyance of a Unit to a Unit Owner is annexed hereto as Exhibit F.  It assumes occupancy of all twenty-four (24) Units during such twelve-month period, although no assurances are made in this regard. The budget makes no provision for inflation. Actual costs may be higher or lower than these estimates.

 

            Prospective purchasers should understand that the Declarant does NOT anticipate that all twenty-four (24) Units will be sold to purchasers during such twelve-month period. However, the Declarant believes that the budget for all twenty-four (24) Units would not differ in any substantial way from the budget that would be in place for any lesser number of Units that may ultimately be sold to purchasers during such twelve-month period. Therefore, a budget assuming that all twenty-four (24) Units have been sold to purchasers during such twelve-month period has been provided. No assurances are made in this regard and actual costs may be higher or lower than these estimates.

 

            The projected budget was prepared by REI Property and Asset Management, Inc, the proposed Manager of Carriage Homes on the Pond.

 

            The budget assumes a one hundred (100%) percent occupancy rate, but also assumes that the Declarant will pay its share of common charges regardless of occupancy based on the number of declared units.  The estimates in the budget are in current 2003 dollars unadjusted for possible inflation.

 

VI.        Services Not Reflected In The Budget:              

                       

            There are no services not reflected in the Budget.

 

VII.       Initial Or Special Fees:

                       

            Each purchaser will, at closing, pay a capital reserve contribution to the Association in an amount equal to two (2) months' Common Expense assessments pursuant to the initial projected budget.  This sum is based upon the Declarant's estimate of the amount necessary to initially capitalize the Association.  This sum is NOT a Common Charge or Common Expense assessment itself and is not a payment in lieu of them. It is not recoverable from the Association upon the resale of the purchaser's Unit although it may be an item adjusted between the purchaser and the purchaser's buyer at the time of any resale, if the parties so agree.

 

                       

VIII.      Liens, Defects Or Encumbrances on Title:

 

            In addition to the terms of the Declaration, title to the Condominium and each Unit therein shall be conveyed together with, and subject to, the following:

 

            a.         The terms, conditions, agreements, obligations, and easements contained in the Declaration of Carriage Homes on the Pond, as it may be amended or supplemented.  Each Unit Owner, by acceptance of a deed to a Unit in Carriage Homes on the Pond, assumes and agrees to be bound by and to comply with all of the terms, conditions, agreements, obligations and easements as set forth in such Declaration, as it may be amended or supplemented, shall become members of Carriage Homes on the Pond Association, Inc. and, as such members, accept all of the rights, and are subject to all of the obligations, connected therewith.

 

            b.         Current taxes due to the Town of Brookfield including any reassessment or reallocation of taxes resulting from the creation of the Condominium or the issuance of a certificate of occupancy for any residence constructed within any Unit, which become due and payable after the delivery of the Unit deed.

 

            c.         Any and all provisions of any ordinance, municipal regulation, or public or private law, including but not limited to wetland and watercourse laws and zoning, building, planning laws, rules and regulations as established in and for the Town of Brookfield.

 

            d.         Any assessment or pending assessment for which a lien or liens have not as yet been filed in the office of the Brookfield Town Clerk.

                       

e.         Notes, building lines, easements and conditions, all as shown on Map Book 15 at Page 47, in Map 867 and on the maps referenced in the legal description to the Condominium parcel, attached to the Declaration as Schedule A, and as shown on the Survey attached to the Declaration as Schedule C, all as on file or to be field in the Brookfield Town Clerk's Office.

 

f.          The effect, if any, of a Private Property Permit in favor of the Danbury and Bethel Gas and Electric Company dated May 13, 1940 and recorded in Volume 32 at Page 319 of the Brookfield Land Records.  A copy of the Private Property Permit is annexed hereto as Exhibit G.

 

g.         A thirty-foot (30’) right of way to Rocky River Realty as more fully described in a Right of Way Deed dated March 3, 1954 and recorded in Volume 42 at Page 181 of the Brookfield Land Records.  A copy of the Right of Way Deed is annexed hereto as Exhibit H.

 

h.         An Easement to the Connecticut light and Power Company dated October 10, 1979 and recorded in Volume 131 at Page 1165 of the Brookfield Land Records.  A copy of the Easement is annexed hereto as Exhibit I.

 

i.          An Easement to the Connecticut light and Power Company dated June 4, 1980 and recorded in Volume 134 at Page 1003 of the Brookfield Land Records.  A copy of the Easement is annexed hereto as Exhibit J.

 

j.          A Drainage Easement to the Town of Brookfield dated May 31, 1979 and recorded in Volume 135 at Page 310 of the Brookfield Land Records.  A copy of the Drainage Easement is annexed hereto as Exhibit K.  The Declarant contemplates that this easement will be abandoned by agreement with the Town of Brookfield and superceded by a new easement to be recorded on the Brookfield Land Records, and the Declarant has the reserved right to grant such easement to the Town of Brookfield.

 

k.         An Easement to the Connecticut Light and Power Company dated December 18, 1981 and recorded in Volume 143 at Page 1169 of the Brookfield Land Records.  A copy of the Easement is annexed hereto as Exhibit L.

 

l.          A Variance dated January 14, 2002 and recorded in Volume 405 at Page 974 of the Brookfield Land Records.  A copy of the Variance is annexed hereto as Exhibit M.

 

m.       A Variance dated January 14, 2002 and recorded in Volume 405 at Page 975 of the Brookfield Land Records. A copy of the Variance is annexed hereto as Exhibit N.

 

n.         A Variance dated April 10, 2002 and recorded in Volume 411 at Page 659 of the Brookfield Land Records. A copy of the Variance is annexed hereto as Exhibit O.

 

o.         Certain rights and conditions set forth in a Special Permit – Design Review Approval dated June 27, 2002 and recorded in Volume 418 at Page 1075 of the Brookfield Land Records.  A copy of the Special Permit – Design Review Approval is annexed hereto as Exhibit P.

 

p.         Certain rights and conditions set forth in a Special Permit – Design Review Approval dated June 27, 2002, revised July 11, 2002 and recorded in Volume 424 at Page 734 of the Brookfield Land Records.  A copy of the Special Permit – Design Review Approval is annexed hereto as Exhibit Q.

 

q.         Certain rights and conditions set forth in a Corrected Special Permit – Design Review Approval dated August 7, 2002 and recorded in Volume 429 at Page 647of the Brookfield Land Records. A copy of the Special Permit – Design Review Approval is annexed hereto as Exhibit R.

 

r.          Certain rights and conditions set forth in a Stipulation dated July 17, 2002 and recorded in Volume 417 at Page 133 of the Brookfield Land Records.  A copy of the Stipulation is annexed hereto as Exhibit S.

 

s.         Riparian rights, if any, of adjoining owners in and to any brook, stream, dams, ditches, drains, ponds and lakes lying upon, flowing into or through the Property and to rights, if any, of others in springs, wells, ponds, brooks or streams on the Property.

 

t.          The Declarant's right to construct underground utility lines, pipes, wires, ducts, conduits and other facilities anywhere in the Condominium for the purpose of furnishing utility and other services to buildings and Improvements to be constructed on the Units. The Declarant also reserves the right to construct utility lines, pipes, wires, ducts, conduits and other facilities across the land not designated as "Development Rights Reserved in this Area" on the Survey for the purpose of furnishing utility and other services to buildings and improvements to be constructed on the land designated as "Development Rights Reserved in this Area" on the Survey.

 

            u.         The Declarant's right to grant easements to public utility companies, state and/or local municipalities, agencies, commissions or boards, and to convey Improvements within those easements anywhere in the Condominium.

 

            v.  The right to use for their respective and intended purposes all roads, walking trails and the like shown on the Survey filed with the Declaration, as amended, in common with all others who own real property in Carriage Homes on the Pond.  The Declarant has reserved the right to grant easements over the walking trails to others who do not own real property within the Condominium.

 

            w.       The Declarant's right to revise the boundaries of a Unit, by amendment to the Declaration and Survey, until the closing of title.

 

            x.        Most Units will each be subject to cross easements in favor of other Units for the purpose of accessing portions of the Units’ remote septic systems for maintenance and repair. Such easements are created in the Declaration. Because portions of the Units that contain the piping for the remote septic system cross the roads and the emergency accessway within the Condominium, those Units with remote septic systems are further subject to the rights of all Unit Owners to pass and repass over such portions.

 

            y.        The Declarant's right to convey that portion of the Condominium shown as "AREA TO BE CONVEYED TO TOWN OF BROOKFIELD 4,451 + S.F." on the Survey to the Town of Brookfield, and to add to the Condominium the area shown as "AREA TO BE CONVEYED TO CARRIAGE HOMES ON THE POND, LLC 6,683 + S.F." on the Survey.

 

z.         The Declarant's right to grant a slope easement over the area shown on the Survey as "SLOPE RIGHTS TO BE RESERVED IN FAVOR OF HW 1945, LLC ".

 

            aa      The Property is currently subject to the following Mortgages, which shall be partially released as to each Unit upon the sale of each Unit:

 

(i)          Mortgage from Charter Group, Inc to Union Savings Bank in the original principal amount of $550,000.00 dated August 12, 2002 and recorded in Volume 419 at Page 328 of the Brookfield Land Records;

 

(ii)         Mortgage from Carriage Homes on the Pond, LLC to Union Savings Bank in the original principal amount of $500,000.00 dated October 25, 2002 and recorded in Volume 425 at Page 280 of the Brookfield Land Records; and

 

(iii)      Mortgage from Carriage Homes on the Pond, LLC to Union Savings Bank in the original principal amount of $750,000.00 dated October 25, 2002 and recorded in Volume 425 at Page 299 of the Brookfield Land Records;

 

IX.        Financing Offered Or Arranged By Declarant:

 

            The Declarant is not offering any financing to Unit purchasers for the purchase of Units.

 

            Although no assurances are made in this regard, the Declarant may arrange with lenders for loans to creditworthy borrowers at the then prevailing rates.  In such case, individual loans will be subject to the terms of any existing or future commitment letters, pre-sale requirements, document review by lenders' counsel, satisfactory inspections of the status and quality of construction of the residences built within the Units, the issuance of certificates of occupancy for the residences to be built within the Units, limitations of sales on non‑owner occupied Units, and such other limitations and requirements as may be imposed from time to time by such lenders.

 

X.         Warranties:

 

A.  Statutory Warranties provided by the Act are as follows:

 

            1.         Express Warranties of Quality - Section 47‑274.

   

                                                a.         Express warranties made by any seller to a purchaser of a unit, if relied on by the purchaser, are created as follows:

 

                                                                        (i)        Any affirmation of fact or promise which relates to the unit, its use, or rights appurtenant thereto, area improvements to the common interest community that would directly benefit the unit, or the right to use or have the benefit of facilities not located in the common interest community, creates an express warranty that the Unit, area improvements and related rights and uses will conform to the affirmation or promise;

 

                                                                        (ii)       Any model or description of the physical characteristics of the common interest community, including plans and specifications of or for improvements, creates an express warranty that the common interest community will substantially conform to the model or description;

   

                                                                        (iii)      Any description of the quantity or extent of the real property comprising the common interest community, including surveys, creates an express warranty that the common interest community will conform to the description, subject to customary tolerances: and

   

                                                            (iv)       A provision that a purchaser may put a unit only to a specified use is an express warranty that the specified use is lawful.

 

                                                b.         Neither formal words, such as "warranty" or "guarantee", nor a specific intention to make a warranty, are necessary to create an express warranty of quality, but a statement purporting to be merely an opinion or commendation of the real property or its value does not create a warranty. 

 

                                                c.         Any conveyance of a unit transfers to the purchaser all express warranties of quality made by previous sellers only to the extent such a conveyance would transfer warranties pursuant to Chapter 827 of the general statutes.    

 

            2.         Implied Warranties of Quality ‑ Section 47‑275.

 

                                                a.         A declarant warrants to a purchaser that a unit will be in at least as good condition at the earlier of the time of the conveyance or delivery of possession as it was at the time of contracting, reasonable wear and tear excepted.

 

                                                b.         A declarant impliedly warrants to a purchaser that a unit and the common elements in the common interest community are suitable for the ordinary uses of real property of its type and that any improvements made or contracted for by him, or made by any person before the creation of the common interest community, will be: (1) free from defective materials; and (2) constructed in accordance with applicable law, according to sound engineering and construction standards, and in a workmanlike manner.

 

                                                c.         In addition, a declarant warrants to a purchaser of a unit that may be used for residential use that an existing use, continuation of which is contemplated by the parties, does not violate applicable law at the earlier of the time of conveyance or delivery of possession.

 

                                                d.         Warranties imposed by this section may be excluded or modified as specified in Section 47‑276 of the Act.

 

                                                e.         For purposes of this section, improvements made or contracted for by an affiliate of a declarant are made or contracted for by the declarant.

 

                                                f.          Any conveyance of a unit transfers to the purchaser all of the declarant's implied warranties of quality only to the extent such a conveyance would transfer warranties pursuant to Chapter 827 of the general statutes.

 

                                                g.         The warranties provided to a purchaser by a declarant pursuant to this section with respect to common elements shall also extend to the Association.

 

3.         Exclusion or Modification of Implied Warranties of Quality ‑ Section 47‑276.

 

                                                a.         Except as limited by subsection (b) of this section with respect to a purchaser of a unit that may be used for residential use, implied warranties of quality: (a) may be excluded or modified by agreement of the parties; and (2) are excluded by expression of disclaimer, such as "as is", "with all faults", or other language that in common understanding calls the purchaser's attention to the exclusion of warranties.

 

                                                b.         With respect to a purchaser of a unit that may be occupied for residential use, no general disclaimer of implied warranties of quality is effective, but a declarant may disclaim liability in an instrument signed by the purchaser for a specified defect or class of defects or specified failure to comply with applicable law, if the defect or failure entered into and became a part of the basis of the bargain.

 

4.         Statute of Limitations for Warranties ‑ Section 47‑276.

 

                                                a.         A judicial proceeding for breach of any obligation arising under Section 47‑274 or 47‑275 of the Act shall be commenced within three years after the cause of action accrues.

 

                                                b.         Subject to subsection (c) of this section, a cause of action for breach of warranty of quality, regardless of the purchaser's or association's lack of knowledge of the breach accrues: (a) as to a unit, at the time the purchaser to whom the warranty is first made enters into possession if a possessory interest was conveyed or at the time of acceptance of the instrument of conveyance if a non-possessory interest was conveyed; and (2) as to each common element, at the time the common element is completed and first used by a bona fide purchaser.

 

                                                c.         If a warranty of quality explicitly extends to a future performance or duration of any improvement or component of the common interest community, the cause of action accrues at the time the breach is discovered or at the end of the period for which the warranty explicitly extends, whichever is earlier.

 

B.        Statutory Warranties ‑ Chapter 827.  A second statutory warranty is found in Chapter 827 of the Connecticut General Statutes and is as follows:

 

1.         Sec.  47‑116.  Definitions

 

                                    As used in this chapter, unless the context otherwise requires: "Improvement" means any newly constructed single family dwelling unit, any conversion condominium unit being conveyed by the declarant and any fixture or structure which is made a part thereof at the time of construction or conversion by any building contractor, subcontractor or declarant; "purchaser" means the original buyer, his heirs or designated representatives, of any improved real estate; "real estate" means any fee simple estate; and "vendor" means any person engaged in the business of erecting or creating an improvement on real estate, any declarant of a conversion condominium, or any person to whom a completed improvement has been granted for resale in the course of his business.    

 

2.         Sec.  47‑117.  Express Warranties

 

                                                a.         Express warranties by a vendor are created as follows: 

 

                                                                        (i)        Any written affirmation of fact or promise which relates to the improvement and is made a part of the basis of the bargain between the vendor and the purchaser shall create an express warranty that the improvement conforms to such affirmation or promise;

 

                                                                        (ii)       any written description of the improvement, including plans and specifications thereof, which is made a part of the basis of the bargain between the vendor and the purchaser shall create an express warranty that the improvement conforms to such description; and

 

 

 

                                                                        (iii)      any sample or model which is made a part of the basis of the bargain between the vendor and the purchaser shall create an express warranty that the improvement conforms substantially to such sample or model.

 

                                                b.         No formal words, such as "warranty" or "guarantee", nor any specific intention to make a warranty shall be necessary to create an express warranty, provided a simple affirmation of the value of the improvement or a statement purporting to be an opinion or commendation of the improvement shall not of itself create such a warranty. 

 

                                                c.         No words in the contract of sale or the deed, nor merger of the contract of sale into such deed shall exclude or modify any express warranty made pursuant to subsection (a) of this section.  Such warranty may, at any time after the execution of the contract of sale, be excluded or modified wholly or partially by any written instrument, signed by the purchaser, setting forth in detail the warranty to be excluded or modified, the consent of the purchaser to such exclusion or modification and the terms of the new agreement.

 

                                                d.         An express warranty shall terminate:

 

                                                                        (i)        In the case of an improvement completed at the time of the delivery of the deed to the purchaser, one year after the delivery or one year after the taking of possession by the purchaser, whichever occurs first; and

 

                                                                        (ii)       in the case of an improvement not completed at the delivery of the deed to the purchaser, one year after the date of the completion or one year after taking of possession by the purchaser, which ever occurs first.

 

3.         Sec.  47‑118.  Implied Warranties

 

                                                a.         In every sale of an improvement by a vendor to a purchaser, except as provided in subsection (b) of this section or excluded or modified pursuant to subsection (d), warranties are implied that the improvement is:

 

                                                                        (i)        Free from faulty materials;

 

                                                                        (ii)       constructed according to sound engineering standards;

 

                                                                        (iii)      constructed in a workmanlike manner, and

 

                                                                        (iv)       fit for habitation, at the time of the delivery of the deed to a completed improvement, or at the time of completion of any improvement not completed when the deed is delivered.

   

                                                b.         The implied warranties of subsection (a) of this section shall not apply to any condition that an inspection of the premises would reveal to a reasonably diligent purchaser at the time the contract is signed.

   

                                                c.         If the purchaser, expressly or by implication, makes known to the vendor the particular purpose for which the improvement is required, and it appears that the purchaser relies on the vendor's skill and judgment, there is an implied warranty that the improvement is reasonably fit for the purpose.

   

                                                d.         Neither words in the contract of sale, nor the deed, nor merger of the contract of sale into the deed is effective to exclude or modify any implied warranty; provided, if the contract of sale pertains to an improvement then completed, an implied warranty may be excluded or modified wholly or partially by a written instrument, signed by the purchaser, setting forth in detail the warranty to be excluded or modified, the consent of the purchaser to exclusion or modification, and the terms of the new agreement with respect to it.

 

                                                e.         The implied warranties created in this section shall terminate:

 

                                                                        (i)        In the case of an improvement completed at the time of the delivery of the deed to the purchaser, one year after the delivery or one year after the taking of possession by the purchaser, whichever comes first; and

 

                                                                        (ii)       in the case of an improvement not completed at the time of delivery of the deed to the purchaser, one year after the date of the completion or one year after taking of possession by the purchaser, whichever occurs first.

 

4.         Sec.  47‑119.  Vendor Not to Evade By Intermediate Transfer.  Any vendor who conveys an improvement to an intermediate purchaser to evade the provisions of this chapter shall be liable to the subsequent purchaser as if the subsequent conveyance had been effectuated by the vendor to the subsequent purchaser.

   

 

5.         Sec.  47‑120.  Warranties Created by Chapter 827 Additional to Any Other Warranties.  The warranties created in this chapter shall be in addition to any other warranties created or implied by law.

 

C.        Statutory Warranty-Section 47‑121.  A third statutory warranty is found in Section 47-121 of the Connecticut General Statutes, and is as follows:

 

                        Implied Warranty with Certificate of Occupancy.  The issuance by the building department of any municipality of a certificate of occupancy for any newly constructed single family dwelling shall carry an implied warranty to the purchaser of such dwelling from the vendor who constructed it that such vendor has complied with the building code or the customary application and interpretation of the building code of such municipality.  No action shall be brought on such implied warranty but within three years next from the date of the issuance of such certificate of occupancy.

 

LIMITATIONS ON WARRANTIES

 

                                    PURSUANT TO SUBSECTION 47‑276(b) OF THE ACT AND SUBSECTION 47‑118(d) OF THE CONNECTICUT GENERAL STATUTES, THE DECLARANT WILL INCLUDE IN ITS PURCHASE AGREEMENT A PROVISION THAT THE FOLLOWING WARRANTIES DESCRIBED ABOVE ARE EXCLUDED:

 

                                                (a)       NO WARRANTIES ARE MADE AS TO THE CONDITION OF ANY HOT WATER HEATER, AIR CONDITIONER, KITCHEN EQUIPMENT OR APPLIANCE OR OTHER ITEMS CONSIDERED CONSUMER PRODUCTS UNDER THE MAGNUSEN‑MOSS FEDERAL TRADE COMMISSION IMPROVEMENT ACT.  THE DECLARANT WARRANTS, HOWEVER, THAT IT WILL DELIVER TO THE PURCHASER ANY MANUFACTURER'S WARRANTIES THAT ARE BOTH APPLICABLE TO SUCH EQUIPMENT OR APPLIANCES AND FOR THE SOLE BENEFIT OF THE CONSUMER PURCHASER.

 

                                                (b)       IMPROVEMENTS AND APPLIANCES INSTALLED BY DECLARANT AT THE PURCHASER'S REQUEST AND EXPENSE, IF ANY, SHALL BE COVERED BY THE MANUFACTURER'S OR CONTRACTOR'S WARRANTY, IF ANY.

 

                                                (c)       THE DECLARANT MAKES NO REPRESENTATIONS OR WARRANTIES AS TO THE CONDITION OR HEALTH OF ANY SHRUBS, TREES OR PLANTINGS. THE DECLARANT WILL DELIVER TO THE ASSOCIATION ANY NURSERY'S WARANTIES THAT ARE BOTH APPLICABLE TO SUCH VEGETATION AND FOR THE SOLE BENEFIT OF THE UNIT OWNER'S ASSOCIATION.

 

            NO ADDITIONAL EXPRESS OR IMPLIED WARRANTIES, UNLESS REQUIRED BY LAW, ARE MADE BY THE DECLARANT.

 

XI.        Purchaser's Right To Cancel:

 

              (a)       Within fifteen (15) days after receipt of a Public Offering Statement a purchaser, before conveyance, may cancel any contract for purchase of a Unit from the Declarant; and

 

              (b)       If the Declarant fails to provide a Public Offering Statement to a purchaser before conveying a Unit, that purchaser may recover from the Declarant ten (10%) percent of the sales price of the Unit plus ten (10%) percent of the share, proportionate to his or her Common Expense liability, of any indebtedness of the Association secured by Security Interests encumbering the Common Interest Community.

 

XII.       Unsatisfied Judgment or Pending Suits:

 

            As of the date of this Public Offering Statement, there are no unsatisfied judgments or pending suits against the Association of which the Declarant has actual knowledge.

 

XIII.      Escrow:

 

            Any deposit made in connection with the purchase of a Unit will be held in an escrow account until closing and will be returned to the purchaser if the purchaser cancels the contract pursuant to Section 47‑269 of the Act. 

 

            The name and address of the escrow agent is:

 

                        Robert Eberhard, Esq.

                        Sullivan, Biraglia, Winans and Eberhard

                        24 Shelter Rock Road

                        Danbury, Connecticut 06810

 

XIV.     Restrictions On Use, Alienation Or Occupancy:

 

a.         Each Unit is restricted to residential use as a single-family residence.  A single family residence is defined as a single housekeeping unit, operating on a non-profit, non-commercial basis between its occupants, cooking and eating with a common kitchen and dining area.  No industry, business, trade or commercial activities, other than home offices, not requiring regular visits from the public or unreasonable levels of mail, shipping, trash or storage, and only, in any event, to the extent permitted by the Brookfield Zoning Regulations, shall be conducted, maintained or permitted within any Unit. 

 

b.         No sign, logo or advertising materials shall be displayed, installed or permitted in the Condominium without the consent of the Executive Board.  The Executive Board shall not unreasonably withhold its consent to the installation and maintenance of house numbers and a sign with the name of the individual or family owning or occupying the Unit.

 

            Notwithstanding the provisions of subparagraphs a. and b., as long as the Declarant is a Unit Owner, or the holder of any Special Declarant Rights, the Declarant may maintain any Unit owned or leased by it or any portion of the Common Elements as a model Unit and/or a sales office or construction office.  The Declarant may also maintain signs and displays advertising the Condominium and shall be permitted those activities that are conducted as a part of the marketing and sales program of the Declarant, which program shall include, without limitation, the right to conduct all marketing and sales activities relating to the development of Carriage Homes on the Pond, and the right to maintain sales offices, signs, specialty fencing and/or lighting and other displays.  The Declarant shall be permitted to conduct any and all construction activities with respect to Carriage Homes on the Pond, including the right to maintain construction offices. 

 

            c.         Unit Owners may not erect "For Sale" or "For Rent" signs within the Condominium until such time as the Declarant has sold all of the Units in Carriage Homes on the Pond.  Thereafter, Unit Owners may erect such signs provided that they are in compliance with local municipal regulations. 

 

            d.         Each garage is restricted to use as storage and as a parking space for vehicles.  Said storage shall not prevent the occupant of the residence from parking at least one motor vehicle in the garage with the doors of the garage closed.  No more than three vehicles may be stored or parked in the Unit at any one time and at least one of the three vehicles must be parked in the garage.

 

            e.         A residence located within a Unit may not be leased or rented for a term of less than one (1) year.  All leases and rental agreements shall be in writing, filed with the Association, and subject to the requirements of the Documents and the Association. These requirements may include, without limitation, the posting of a deposit with the Association by the Unit Owner.  Any Unit Owner leasing his or her residence within his or her Unit shall be fully responsible and liable to the Association for the compliance by his or her tenant with the provisions of the Declaration, the By-Laws and the Rules and Regulations, if any, of the Condominium and the Association.  Notwithstanding the foregoing, as long as the Declarant is a Unit Owner, the Declarant may enter into short term leases on a day-to-day basis as a part of providing temporary occupancy to purchasers prior to closing.

 

            f.          A Unit may not be conveyed pursuant to a time-sharing plan as defined under Chapter 734b of the Connecticut General Statutes.

 

            g.         The Association may adopt rules that affect the use or occupancy of the Units only to (i) prevent any use of the Unit which violates the Declaration; (ii) regulate any occupancy of a Unit which violates the Declaration or adversely affects the use and enjoyment of other Units or the Common Elements by other Unit Owners; or (iii) restrict the leasing of the residences within the Units to the extent that the rules are reasonably designed to meet first mortgage underwriting requirements of institutional lenders who regularly purchase or insure first mortgages on units in common interest communities, provided no such rule shall be enforceable unless notice thereof is recorded on the Brookfield Land Records.  Such notice shall be indexed in said land records in the name of the Association and of the Condominium as both grantor and grantee.

                                   

            h.         There is no restriction on the amount for which a Unit may be sold or otherwise transferred.

 

            The restrictions on the use, alienation and occupancy of the Units and the Common Elements, including those set forth herein, are contained in the Declaration, and, in particular, Article X thereof, and purchasers are advised to review such restrictions and the Declarant's rights with respect thereto.  These restrictions, among other things, prohibit certain activities which might be injurious to the reputation and appearance of the Condominium.

 

XV.      A Description of the Insurance Coverage Provided for the Benefit of Unit Owners:

 

            The following is only a general description of the policies to be carried by the Association with respect to the Condominium, to the extent reasonably available:

 

            a.         Property Insurance covering:

 

                        (i)        The project facilities (which term means all real property, buildings, fixtures, equipment and any improvements and betterments which, in all cases, are part of a Common Element); and

 

                        (ii)       All personal property owned by the Association.

 

            Such Property Insurance shall insure the project facilities for an amount equal to one hundred percent (100%) of their replacement cost at the time the insurance is purchased and at each renewal date.  Personal property owned by the Association shall be insured for an amount equal to its actual cash value.

 

            The Executive Board is authorized to obtain appraisals periodically for the purpose of establishing such replacement cost of the project facilities and the actual cash value of the personal property and the cost of such appraisals shall be allocated as a Common Expense.

           

            NOTWITHSTANDING ANYTHING CONTAINED HEREIN, THE ASSOCIATION SHALL NOT BE RESPONSIBLE TO MAINTAIN PROPERTY (FIRE AND OTHER HAZARD) INSURANCE ON THE RESIDENCES OR OTHER IMPROVEMENTS WITHIN THE UNITS.  EACH UNIT OWNER SHALL OBTAIN HIS OR HER OWN PROPERTY (FIRE AND OTHER HAZARD) INSURANCE POLICY (HO-3) ON HIS OR HER OWN RESIDENCE AND OTHER IMPROVEMENTS WITHIN HIS OR HER OWN UNIT, AND SHALL PROVIDE EVIDENCE OF SUCH INSURANCE TO THE ASSOCIATION ON AN ANNUAL BASIS. FURTHER, ALL UNIT OWNERS SHALL INCLUDE THE ASSOCIATION AS AN ADDITIONAL INSURED UNDER THEIR POLICIES.

 

            b.         Liability Insurance.

 

            Liability insurance, including medical payments insurance, in an amount determined by the Executive Board but in no event less than $1,000,000.00 covering all occurrences commonly insured against for death, bodily injury and property damage arising out of or in connection with the use, ownership or maintenance of the Common Elements. An excess liability policy using a limit of at least $2,000,000.00 will also be maintained.

 

            c.         Insurance required in connection with the Connecticut Light and Power Company License.

 

            As set forth in Article XIX h. of this Public Offering Statement, the pond on the Property exists by virtue of a License to maintain a concrete pond weir water control structure on property of the Connecticut Light and Power Company.  By the terms of the License, the Association is obligated to maintain the following insurance coverage:

 

                        (i)        Liability insurance, including broad form property damage liability, with limits of at least $1,000,000.00 per occurrence/per aggregate for bodily injury and $1,000,000.00 per occurrence/per aggregate for property damage

           

                        (ii)       Workers’ Compensation insurance at statutory limits with Employer’s Liability with limits of at least $500,000.00.

 

            Both of said policies are to be endorsed to name the Connecticut Light and Power Company, its directors, officers, employees and affiliates as additional insureds with respect to any and all third party bodily injury and/or property damage and shall require that thirty days’ written notice be given to the Connecticut Light and Power Company prior to any cancellation or material change in the policies.

 

            You are urged to study these provisions and to consult with your own insurance adviser to assure yourself that you are aware of the extent of coverage provided by the insurance maintained by the Association and to make arrangements for appropriate additional coverage.

 

XVI.     Fees or Charges for Use of Common Elements:

 

            No additional fees or charges are to be paid by Unit Owners for the use of the Common Elements of Carriage Homes on the Pond.

 

            The Executive Board has the authority, however, to impose charges for the use, rental or operation of the Common Elements, and for services provided to Unit Owners, in accordance with Subsection 25.2(l) of the Declaration.

 

XVII.    Financial Arrangements for Completion of Improvements:

 

            The Declarant intends to construct the residences and other Improvements within the Units and Common Elements from its own resources and from construction financing obtained or yet to be obtained.  No assurances are given that the Declarant will be able to obtain any such construction financing, or, if it does, that any such construction financing proceeds will be sufficient to complete all of such residences and other Improvements, or that any such construction financing proceeds, if and when obtained, will be fully advanced.  The construction lender will not obligate itself to complete such residences and Improvements and, in the event of foreclosure, may choose not to complete them. 

 

XVIII.  Zoning and Other Land Use Requirements:

                       

            On January 14, 2002 and on April 10, 2002 the Town of Brookfield Zoning Board of Appeals granted variances to Charter Group, Inc. to reduce required buffer areas.  Copies of the Variances are annexed hereto as Exhibits M, N and O.

 

            On June 27, 2002, the Town of Brookfield Zoning Commission issued, with general conditions and special stipulations, a Special Permit – Design Review to Charter Group, Inc. for a development of twenty-four (24) single-family detached dwellings with roadways, drainage, septic and water systems and all related utilities on the Property.  This Special Permit – Design Review Approval was superceded by a Special Permit – Design Review Approval dated June 27, 2002, and revised July 11, 2002, and by a Corrected Special Permit – Design Review Approval also dated June 27, 2002 and revised July 11m 2002  Copies of the Special Permits – Design Review Approvals are annexed hereto as Exhibits P, Q and R.

 

            The Property contains areas of wetlands, and on March 27, 2002, the Town of Brookfield Inland Wetlands Commission issued an Inland Wetlands Permit to Charter Group, Inc. subject to stipulations and general conditions.  A copy of the Inland Wetlands Permit is annexed hereto as Exhibit T.  On July 16, 2002 the Inland Wetland Commission issued a letter indicating its approval of the installation of a weir to restore the pond the Property.  A copy of this letter is annexed hereto as Exhibit U.  On August 12, 2002 the Inland Wetlands Commission voted to remove certain stipulations contained in the original Permit.  A copy of the notice of such decision is annexed hereto as Exhibit V.

 

XIX.     Unusual And Material Circumstances:

 

            In addition to the unusual and material circumstances, features or characteristics of the Condominium and the Units disclosed elsewhere in this Public Offering Statement, the following are noted:

 

            a.         As stated in the Declaration, and elsewhere in this Public Offering Statement, in Carriage Homes on the Pond a Unit is that real property consisting of the space filled with air above the surface of the land, with all rights of ownership and possession in such air space and in the buildings and other Improvements now lying within such air space or to be constructed within such air space, within the vertical boundaries defined by the Unit lines, as more particularly shown on the Survey, extended to the heavens.  The boundaries of the Units are more fully described in the Declaration and on the Survey.  Because the Units for Carriage Homes on the Pond are defined in this manner, and do not themselves constitute the homes to be built by the Declarant, no house plans are required to be included as part of the Declaration.   

 

            b.         The Declarant has reserved the right to revise the boundaries of a Unit, by amendment to the Declaration and the Survey, until closing of title.

 

c.         The areas shown as "Open Space” on the Survey, shall be left in their present natural state and shall not be disturbed or altered in any way including, but not limited to, the cutting of trees, brush or other vegetation or the change of grade by fill or excavation, except as permitted by regulatory agencies of the Town of Brookfield or State of Connecticut and except for the creation and maintenance of walking trails as shown on the Survey.  Further, the Declarant has reserved the right to clear and grade in the Open Space areas as necessary to complete Improvements and to construct residences and appurtenances in the Condominium.

 

            d.         Tangible personal property of the Declarant and its agents, including trucks, construction equipment and tools used in construction of all types, displays, models, signs, furnishings in sales offices and models, brochures and display areas, as used from time to time in sales and marketing, furnishings and equipment in the construction office, if any, and equipment used in landscaping, will remain the property of the Declarant whether or not used exclusively in maintenance and operation of the Condominium and whether or not such property has become a fixture.

 

            e.         Portions of Carriage Homes on the Pond are located in the IR 80SE zone, which is an Industrial Zone, and the Condominium is accessed through an industrial subdivision.

 

 

 

            f.          The secondary access road shown on the Survey may be used for emergency purposes only.  The Association is responsible for maintaining said road and the breakaway chains located thereon.

 

            g.         Most of the septic systems servicing residences in Carriage Homes on the Ponds will consist of remote septic fields which are accessed from the  residences via piping which runs in three foot (3’) wide strips of land. The area containing the fields, as well the strip of land containing the line, are a part of the Unit, as shown on the Survey.  The septic system for each residence (including the septic field and piping) will be maintained by the Unit Owner whose residence is served by the system.  In the event that a Unit Owner does not maintain his or her septic system the Association may do so at the expense of the Unit Owner and may assess the cost of such maintenance against the Unit Owner in question as a Common Expense.  Unit Owners must clean their septic tanks at least once every three (3) years. Unit Owners whose Units have remote septic systems have been granted easements over other Units for the purpose of accessing portions of their remote septic systems for maintenance and repair.  All Unit Owners have been granted easements to pass and repass over the portions of the Units with remote septic systems which cross the roads or the emergency accessway in the Condominium.

 

            h.         The water level of the pond located in the Condominium exists by virtue of a License to maintain a concrete pond weir water control structure located outside of the Condominium on property owned by the Connecticut Light and Power Company (“CL&P”). A copy of the License is annexed hereto as Exhibit W.  Pursuant to the terms of the License, CL&P has the right to lower the water levels in the pond or to terminate the License upon ninety (90) days’ prior written notice, and, therefore, there is no guarantee that water levels in the pond will be constant at any particular time.  The Association is required to pay an annual license fee to the CL&P and is required to maintain certain policies of insurance, as set forth in the License and in Article XV c. of this Public Offering Statement.

 

            i.          Iroquois Gas Transmission Systems (“Iroquois”) has been granted permission from the Federal Energy Regulatory Commission (“FERC”) to construct a new compressor station in Brookfield on a site which is located to the north of the Condominium, across the pond and railroad tracks.  The proposed facility would be located approximately eight hundred (800) feet from the nearest Unit boundary and approximately one thousand three hundred (1,300) feet from the nearest residence.  The proposed facility would consist of a building that will house a turbine driven compressor unit.  Noise will be controlled by various noise abatement techniques to operate the station at noise levels at or below guidelines established by FERC.  The purpose of the facility is to increase the flow of natural gas through existing pipes located in the area.  Assuming that Iroquois receives all required permits for the facility, Iroquois anticipates that construction of the facility will start in the spring of 2003 and that the facility will be operational by November 2003.

 

            j.          Maintenance, repair and replacement responsibilities are allocated between Association and Unit Owners so as to be most consistent with the ownership of a single-family home.  In that regard, maintenance, repair and replacement responsibilities are summarized as follows:

 

                        (i)  Maintenance by the Association:  Except as otherwise specifically set forth below, the Association is responsible to maintain, repair and replace all of the Common Elements, including, without limitation:

 

                                    (A)       Carriage House Lane and Black Swan Court (and the portions of the Units that cross such roads) and paving, curbing, striping and signage associated therewith, including, without limitation, the plowing of all such roads;

 

                                    (B)       the pond;

 

                                    (C)      the secondary access road and the breakaway chains located thereon;

 

                                    (D)      fire suppression tank and hydrants;

 

                                    (E)       landscaped areas within Units as provided in Section 6.4 of the Declaration;

 

                                    (F)       storm and site drainage systems and appurtenances;

 

                                    (G)      removal of snow and ice from and upon driveways and walks serving individual residences;

 

                                    (H)      lighting fixtures located within the Common Elements;

                                               

                                    (I)        periodic cleaning of gutters and leaders serving individual residences;

 

                                    (J)       periodic cleaning of septic systems; and

 

                                    (K)       maintenance, repair and replacement of the concrete pond weir water control structure located on land of the Connecticut Light and Power Company outside of the Condominium as set forth in Article XIX h. of this Public Offering Statement.

 

 

 

                        (ii)       Maintenance by Unit Owners:  Except as provided elsewhere in this subsection j., each Unit Owner shall be responsible to maintain, repair and replace all portions of his or her Unit, including, without limitation:

 

                                    (A)       the interior and exterior of any and all buildings and Improvements located within the Units, including, but not limited to the residences, decks, patios, wells and septic systems and appurtenances thereto, driveways and walks (with the exception of snow and ice removal to be performed by the Association);

 

                                    (B)       the space lying directly below the Unit within the planes of the vertical perimeter of the boundaries of the Unit extended to the center of the earth, and the Improvements within such space, which may consist of, without limitation, wells, sewerage systems, footings, foundations, slabs, basements, cellars, electrical wiring, pipes, pavement, ducts, conduits, television, telephone and electrical receptacles, light fixtures, posts, vaults, boxes, and underground Improvements generally serving the Unit exclusively.

 

                        FOR MORE DETAILS SEE ARTICLE VI OF THE DECLARATION.

 

 

 

 


 

SECTION TWO:

 

Disclosures Required Because of

Reservation of Development Rights

 

The Declaration provides in Article VIII that this Condominium is subject to Development Rights. The Act requires disclosure of the following information with regard to said Development Rights:

 

XX.      The maximum number of units, and the maximum number of units per acre that may be created

 

The maximum number of Units that may be created in the Condominium is twenty-four (24) The Declaration appended hereto, once recorded on the Brookfield Land Records, will create one (1) Unit only, and the Declarant offers no assurances that any additional Units will be constructed other than the one (1) Unit created thereby.  The maximum average number of Units that may be created per acre for the project if fully developed is 1.06 Units per acre.

 

XXI.     Number or percentage of Units that may be created that will be restricted exclusively to residential use:

 

Except as to the Declarant's right to use certain Units for models or for offices, the Units will be restricted exclusively to residential use as defined by the Zoning Regulations of the Town of Brookfield. Reference is hereby made to Article X of the Declaration.

 

XXII.    Maximum percentage of the real property areas subject to Development Rights and the maximum percentage of the floor areas of all units that may be created that are not restricted exclusively to residential use:

 

As stated in the answer to Question XXI above, all of the Units have been or will be exclusively restricted to residential use as defined by the Zoning Regulations of the Town of Brookfield, except as may be reserved for models or offices by the Declarant pursuant to the Act and the Declaration. For that reason, one hundred percent (100%) of the real property and one hundred percent (100%) of the floor areas of all of the Units that may be created are not restricted exclusively to residential use.

 

XXIII    Development rights and any conditions relating to or limitations on the exercise of development rights:

 

The Declarant has reserved Development Rights as follows:

 

The Declarant reserves all Development Rights as such rights are defined in Section 47‑202 (14) of the Act and all Special Declarant Rights as such are defined in Section 47‑202 (29) of the Act, except for subsection (E) specified in said subsection 29. The limitations with regard to the exercise of such Development Rights and Special Declarant Rights and a more detailed statement of the reservation of such rights are set forth in Article VIII of the Declaration attached hereto to which reference is hereby made.

 

                        Without intending to limit the generality of the foregoing, the Declarant hereby discloses as follows:

 

            The specific location of the residence within any particular Unit will be at the Declarant's sole discretion, taking into account the particular site conditions within the Unit as well as the requirements of the Town of Brookfield.  In addition, the type of any particular residence, as well as the mix of residence types within the Condominium as a whole, will be at the Declarant's sole discretion, taking into account site conditions, the requests of purchasers, and any requirements of the Town of Brookfield.  No representation of any kind is made, as to any particular site location, of the layout of, or number of rooms within, any residence whose construction is not yet completed.  As stated elsewhere in this Public Offering Statement, other than that the quality of construction of any building to be created within the Condominium shall be consistent with the quality of construction of existing buildings, no other assurances are made by the Declarant regarding compatibility.  Units will be created at the option of the Declarant by amendment of the Declaration.   Further, the Declarant has reserved the right to relocate the boundaries of any Unit, by amendment to the Declaration and the Survey, until such time as the Declarant enters into a purchase agreement to sell such Unit, or, after the Declarant enters into a purchase agreement, until the Unit is sold, with the consent of the contract purchaser.

                                     

            The Declarant has reserved the right to construct underground utility lines, pipes, wires, ducts, conduits and other facilities in the Condominium and the  right to grant easements to public utility companies, state and/or local municipalities, agencies, commissions or boards and to convey Improvements within those easements anywhere in the Condominium. 

 

            No Development Rights may be exercised unless approved pursuant to Section 18.5 of the Declaration.

 

            The Development Rights may be exercised at any time, but not more than fifteen (15) years after the recording of the Declaration. The Declarant may terminate some or all of the Development Rights prior to the fifteen- (15) year expiration date by a recorded instrument.

 

            The Declarant has reserved Special Declarant Rights to maintain models, sales offices, management offices and signs advertising the Condominium, to use easements through the Common Elements for the purpose of making Improvements within the Condominium, to appoint or remove any officer of the Association or any Executive Board member during any period of Declarant control subject to the provisions of Section 8.4 of the Declaration, to complete Improvements indicated on the Survey filed with the Declaration, and to exercise any Development Right reserved in the Declaration.  The Declarant shall have the right and privilege to enter upon any Unit at anytime either prior or after the conveyance to a purchaser to change the grade of the ground and/or install or change drainage control devices so as to alleviate any possible drainage or run-off problems for the Unit or adjoining Units.

 

XXIV.   Maximum extent to which each Unit's Allocated Interests may be changed by the exercise of any Development Right:

 

            The Allocated Interests of each existing Unit have been calculated using the following formulas:

 

            a.  Undivided  Interest in the Common Elements and Liability for the Common Expenses.

 

            Both the percentage of the undivided interest in the Common Elements and the percentage of liability for Common Expenses have been allocated to each Unit equally and are based upon one (1) share to each Unit.

 

                The maximum extent to which each Unit's allocated interest may be changed will be determined by the number of Units that are added to the Condominium.  As Units are added each Unit Owner's allocated interest in the Common Elements will be reduced so that at any point in time the total interest in the Condominium (when prorated among the Units) will equal 100% (with rounding).  A list of the Unit’s Allocated Interests is annexed hereto as  Exhibit X.

 

            Nothing contained in this subsection shall prohibit certain Common Expenses from being apportioned to particular Units in accordance with the Declaration.

 

b.  Votes.  Each Unit in the Condominium shall have one (1) equal vote.

 

XXV.    Compatibility of buildings or other improvements to existing buildings and Improvements:

 

            The quality of construction of residences within any Unit shall be consistent in terms of quality of construction, but no other assurances are made by the Declarant regarding compatibility. 

 

  XXVI.   Other Improvements and Limited Common Elements that may be created pursuant to any Development Right:

 

The Declarant contemplates that Limited Common Elements will be created pursuant to Development Rights which will be of the same general size and type as the Limited Common Elements in the portion of the Condominium declared or to be declared by the Declaration appended hereto.  No assurances, however, are made by the Declarant in this regard.

 

  XXVII.  Limitations as to the locations of any buildings or other Improvement that may be made:

                       

            No assurances are made as to the locations of any building or other Improvement that may be made within any part of the Condominium pursuant to any Development Right reserved by the Declarant.  The location of any proposed Improvements shown on the Survey attached to the Declaration are for illustrative purposes only.  These locations may vary in depending upon site requirements or in the Declarant's sole discretion.

 

            The Declarant reserves the right to build buildings in any order, not to build those buildings or to leave buildings partially constructed for an indefinite period of time.

 

                     No assurances are made as to the extent, nature or style of any landscaping, fencing, accessory structures and Improvements except as set forth in Article XXV above.

 

XXVIII.   Similarity of Limited Common Elements created pursuant to any Development Right to Limited Common Elements within other parts of the Condominium:

 

            The Declarant contemplates that any Limited Common Elements created pursuant to the Development Rights will be of the same general size and type as Limited Common Elements within other parts of the Condominium.  No assurances, however, are made in this regard. 

 

XXIX.   Equality of proportion of Limited Common Elements to Units created pursuant to any Development Right to the proportion existing in other parts of the Condominium:

 

             The Declarant makes no assurances that the proportion of Limited Common Elements to Units that may be created will be approximately equal to the proportion existing in other parts of the Condominium.

 

XXX   Applicability of restrictions in the Declaration affecting use, occupancy and alienation of Units to any Units created pursuant to any Development Right:

 

            The Declarant contemplates that all restrictions in the Declaration regarding the use, occupancy and alienation of Units will apply to any Units created pursuant to Development Rights reserved by the Declarant.  No assurances, however, are made in that regard.

 

                        XXXI.  Applicability of assurances made pursuant to Section 47‑265 of the Act in the event that any Development Right is not exercised by the Declarant:

 

                The assurances that the Declarant has made with respect to the quality of construction and the residential usage of Units which may be created apply only to the extent that Units are created.  In the event that any Development Right reserved by the Declarant to construct any Unit is not exercised within fifteen (15) years after the recording of the Declaration, such Development Right shall lapse, and, thereafter, if no construction activity is being undertaken by the Declarant, that portion of the Common Elements will be available for use by the Association without restriction.  So long as a Development Rights exists but is not exercised those areas may not be conveyed or separately encumbered by the Association.

  

 

XXXII.  Time Share Restrictions:  Time‑sharing is prohibited.

 

XXXIII.  New Home Construction Contractor Registration Certificate and Notice: A copy of the Declarant's New Home Construction Contractor Registration Certificate is annexed hereto as Exhibit Z, and the Declarant's New Home Construction Contractor's Notice is annexed hereto as Exhibit AA.

 

            THE INFORMATION SET FORTH HEREIN IS SUMMARY IN NATURE.  A PROSPECTIVE PURCHASER SHOULD REFER TO ALL REFERENCED DOCUMENTS, EXHIBITS, AND SCHEDULES AS WELL AS THE ENTIRE SET OF DISCLOSURE MATERIALS, AGREEMENTS AND CONTRACTS, INCLUDING THE PURCHASE AGREEMENT.  STATEMENTS MADE REGARDING THE PROVISIONS OF SUCH DISCLOSURE MATERIALS, AGREEMENTS AND CONTRACTS ARE QUALIFIED IN ALL RESPECTS BY THE CONTENTS OF SUCH DOCUMENTS AND, IN THE CASE OF ANY SUCH DOCUMENTS EXECUTED BY OR WITH THE WRITTEN CONSENT OF A PURCHASER PURSUANT TO THIS PUBLIC OFFERING STATEMENT, ANY RIDER OR SEPARATE AGREEMENT CHANGING OR ADDING PROVISIONS TO SUCH DOCUMENTS.  IF THIS PUBLIC OFFERING STATEMENT, OR ANY OF THE OTHER DISCLOSURE MATERIALS, AGREEMENTS AND CONTRACTS, ALL OF WHICH ARE IMPORTANT DOCUMENTS, ARE NOT UNDERSTOOD BY THE PROSPECTIVE PURCHASER, HE OR SHE SHOULD SEEK COMPETENT ADVICE.

 

 

Dated:_______________

Brookfield, Connecticut

 

CARRIAGE HOMES ON THE POND, LLC            

 

By: Charter Group, Inc.,

       Its Member        

                                                                                   

                      

                                                                        By:_________________________

                                                                              Dennis K, Stone, President


 

 

 

Carriage Homes on the Pond ~ Brookfield, Connecticut 06804-3920