Warranty of Condominium Project Legal Documents (Form 1054): PDF

Warranty of Condominium Project Legal Documents
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Lender Name
Lender Address
Legal/Construction Phases Covered by This Warranty
City
Project Name
Address
City
Condo Project Manager™ Project ID No(s)
Are all documents recorded?
Yes
No If Yes, Date of Recordation:
Seller/Servicer No.
State AK
State AK
File No
ZIP Code
ZIP Code
N/A
The lender must engage a qualified attorney to provide a written memorandum, based on a review of the project’s legal documents, which states that they
are in compliance with the legal requirements discussed herein. The attorney may be the same person who prepared the legal documents, but he or she
cannot be an employee, principal, or officer of the developer or sponsor of the project. The attorney’s memorandum must be attached to this form.
The lender warrants (unless specifically excepted below) that as of the date below, the legal documents of the above identified project
comply with the following:
Compliance with laws – The condominium project has been created and exists in full compliance with the state law requirements of the
jurisdiction where the condominium project is located and all other applicable laws and regulations.
Limitations on ability to sell/right of first refusal – Any right of first refusal in the condominium project documents will not adversely impact
the rights of a mortgagee or its assignee to:
 Foreclose or take title to a condominium unit pursuant to the remedies in the mortgage;
 Accept a deed or assignment in lieu of foreclosure in the event of default by a mortgagor; or
 Sell or lease a unit acquired by the mortgagee or its assignee.
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Amendments to Documents –
 The project documents must provide that amendments of a material adverse nature to mortgagees be agreed to by mortgagees that
represent at least 51 percent of the votes of unit estates that are subject to mortgages.
 The project documents must provide for any action to terminate the legal status of the project after substantial destruction or
condemnation occurs or for other reasons to be agreed to by mortgagees that represent at least 51 percent of the votes of the unit
estates that are subject to mortgages.
 The project documents may provide for implied approval to be assumed when a mortgagee fails to submit a response to any written
proposal for an amendment within 60 days after it receives proper notice of the proposal, provided the notice was delivered by
certified or registered mail, with a “return receipt” requested.
Rights of Condo Mortgagees and Guarantors – The project documents must give the mortgagee and guarantor of the mortgage on any unit
in a condominium project the right to timely written notice of:
 Any condemnation or casualty loss that affects either a material portion of the project or the unit securing its mortgage;
 Any 60-day delinquency in the payment of assessments or charges owed by the owner of any unit on which it holds the mortgage;
 A lapse, cancellation, or material modification of any insurance policy maintained by the homeowners’ association; and
 Any proposed action that requires the consent of a specified percentage of mortgagees.
First mortgagee’s rights confirmed – No provision of the condominium project documents gives a condominium unit owner or any other party
priority over any rights of the first mortgagee of the condominium unit pursuant to its mortgage in the case of payment to the unit owner of
insurance proceeds or condemnation awards for losses to or a taking of condominium units and/or common elements.
Unpaid dues - Any first mortgagee who obtains title to a condominium unit pursuant to the remedies in the mortgage or through foreclosure will
not be liable for more than six months of the unit’s unpaid regularly budgeted dues or charges accrued before acquisition of the title to the unit
by the mortgagee. If the condominium association’s lien priority includes costs of collecting unpaid dues, the lender will be liable for any fees or
costs related to the collection of the unpaid dues.
Specific exceptions to the above requirements:
None
Yes If Yes, explain.
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Name of Attorney
Law Firm Name
Telephone Number
E-mail Address
Website
Address
City
State AK
ZIP Code
It is understood that if any warranty is untrue, the repurchase, termination of contract, and indemnification for breach of warranty provisions of the Fannie
Mae Mortgage Selling and Servicing Contract shall apply.
Name of Lender’s Authorized Representative
Title
Telephone #
Signature of Authorized Representative
Page 1 of 1
Date
Fannie Mae Form 1054 (1208)