Ohio Code § 5311.25

§ 5311.25.

(A)(1) Except as provided in division (A)(2) of this section, any deposit or down payment

made in connection with the sale of a condominium ownership interest shall be held

in trust or escrow until delivered at settlement, returned to or otherwise credited

to the purchaser, or forfeited to the developer. If a deposit or down payment of more than two thousand dollars is held for more than

ninety days and is not withdrawn pursuant to division (A)(2) of this section, interest

at a rate equal to the prevailing rate payable by federally insured financial institutions

in the county of the condominium property on daily interest accounts for any period

exceeding ninety days shall be credited to the purchaser at settlement or upon return

or other credit made to the purchaser or added to any forfeiture to the developer.

Interest is payable only on the amount of the deposit or down payment that exceeds

two thousand dollars. (2)(a) If a contract for the sale of a condominium ownership interest contains the legend

described in division (A)(2)(b) of this section, a developer may, in accordance with

the contractual provisions, withdraw a deposit or down payment from trust or escrow

upon the commencement of construction of the structure of the condominium property

in which the purchaser's unit will be located and use the moneys in the actual construction

and development of the condominium property.  The developer shall not use the moneys for advertising purposes or for the salaries,

commissions, or expenses of agents. (b) A contract that permits withdrawals of a deposit or down payment for the purposes

described in division (A)(2)(a) of this section shall include the following legend

conspicuously printed or stamped in boldface type on the contract's first page and

immediately above the signature of the purchaser:  “Purchaser acknowledges that, pursuant

to this contract, the developer may withdraw and then use for construction and development

of the condominium property any deposit or down payment that the purchaser makes prior

to closing.” (3) Deposits and down payments held in trust or escrow in accordance with division (A)(1)

of this section are not subject to attachment, garnishment, or other legal process

by creditors of the developer, agents, or the purchaser of the condominium ownership

interest. (B) Except in the capacity as a unit owner of unsold condominium ownership interests,

the developer or agent shall not retain a property interest in any of the common elements

after unit owners other than the developer assume control of the unit owners association

except as follows: (1) In a leasehold condominium development, the developer or agent may retain the same

interest in the common elements as the developer or agent retains in the entire condominium

development. (2) In an expandable condominium property, the developer may retain an interest consistent

with the declaration and necessary to ensure both of the following, whether or not

the condominium property is expanded to include the additional property: (a) Ingress and egress over the common elements for the benefit of the additional property; (b) The availability of utilities from and to the common elements for the benefit of

the additional property. (3) The developer may retain the right to enter upon the condominium property to fulfill

any warranty obligations to the unit owners association or to unit owners. (C) The owners of condominium ownership interests that have been sold by the developer

or an agent shall assume control of the common elements and of the unit owners association

as prescribed in divisions (C) and (D) of section 5311.08 of the Revised Code . (D) Unless a contract or other agreement is renewed by a vote of the unit owners exercising

a majority of the voting power of the unit owners association, neither the unit owners

association nor the unit owners shall be subject to either of the following: (1) For more than ninety days subsequent to the date that the unit owners other than

the developer assume control of the unit owners association, any management contract

executed prior to that assumption of control; (2) For more than one year subsequent to an assumption of control, any other contract

executed prior to that assumption of control, except for contracts for necessary utility

services. (E)(1) Except as provided in division (E)(4) of this section, the developer shall furnish

both of the following: (a) A minimum of a two-year warranty covering the full cost of labor and materials for

any repair or replacement of roof and structural components, and mechanical, electrical,

plumbing, and common service elements serving the condominium property or additional

property as a whole, occasioned or necessitated by a defect in material or workmanship; (b) A one-year warranty covering the full cost of labor and materials for any repair

or replacement of structural, mechanical, and other elements pertaining to each unit

occasioned or necessitated by a defect in material or workmanship. (2) The two-year warranty shall commence as follows: (a) For a condominium development other than an expandable condominium development, on

the date the deed or other evidence of ownership is filed for record following the

sale of the first condominium ownership interest in the development to a purchaser

in good faith for value; (b)(i) For an expandable condominium development, for property submitted by the original

declaration, on the date the deed or other evidence of ownership is filed for record

following the sale of the first condominium ownership interest in the property to

a purchaser in good faith for value; (ii) For an expandable condominium development, for any additional property submitted

by amendment to the declaration, on the date the deed or other evidence of ownership

is filed for record following the sale of the first condominium ownership interest

in the additional property to a purchaser in good faith for value. (3) The one-year warranty for each unit shall commence on the date the deed or other

evidence of ownership is filed for record following the developer's sale and conveyance

of the condominium ownership interest in the unit to a purchaser in good faith for

value. (4) The valid assignment by the developer of the express and implied warranty of the

manufacturer satisfies the developer's obligation under this section with respect

to ranges, refrigerators, washing machines, clothes dryers, hot water heaters, and

other similar appliances installed and furnished as part of the unit by the developer.  The developer's warranty under division (E)(1) of this section is limited to the

installation of the appliances. (5) All warranties made to the developer that exceed time periods specified in division

(E)(1) of this section with respect to any part of a unit shall be assigned to the

purchaser of that unit and warranties with respect to any part of the common elements

shall be assigned to the unit owners association. (F) The developer shall assume the rights and obligations of a unit owner in the developer's

capacity as owner of condominium ownership interests not yet sold, including the obligation

to pay common expenses attaching to those interests, from the date the declaration

is filed for record even if the construction of the units and the appurtenant common

elements subject to the condominium ownership interests has not started or is not

complete. (G) In a conversion condominium development, the developer shall offer each tenant an

option, exercisable within not less than ninety days after notice, to purchase a condominium

ownership interest in the development that the tenant occupies and at a price that

is not greater than the price at which the unit will be offered to the general public

for the subsequent one hundred eighty-day period.  The developer shall give each tenant written notice of not less than one hundred

twenty days prior to the conversion or intended conversion, during which time the

tenant may not be evicted to accommodate or facilitate the sale of any unit if the

tenant is not in default under the tenant's terms of tenancy.  The ninety-day and one hundred twenty-day notice periods may run concurrently and

may be waived in writing by a tenant.  If two or more tenants occupy a unit in a conversion condominium development, the

option to purchase shall be given jointly to those tenants. (H) Except as provided in section 5311.24 of the Revised Code , no developer or agent, directly or indirectly, shall sell or offer to sell a condominium

ownership interest in a condominium development unless the condominium instruments

include a statement that sets forth the requirements of this section and sections 5311.26 and 5311.27 of the Revised Code .