Vermont § 1601 - Offering of cooperative interests; subscription agreement; disclosures required

§ 1601. Offering of cooperative interests; subscription agreement; disclosures required

• (a) In conjunction with the offering of cooperative interests to prospective members,
  a cooperative housing corporation, or other persons or entities seeking to establish
  a cooperative housing corporation, or the owner of a cooperative interest seeking
  to sell that interest, shall provide to all prospective purchasers a copy of the proposed
  or adopted articles of incorporation and bylaws of the cooperative housing corporation,
  a subscription agreement or sales agreement, a proposed proprietary lease, and the
  most current corporate financial statements, if any exist. (b) The subscription agreement or sales agreement shall contain provisions detailing the
  cost of acquisition of a cooperative interest, the rights and privileges of membership
  in the cooperative housing corporation, and terms and conditions of occupancy of a
  unit in the cooperative housing corporation; provisions, if any, under which the subscription
  agreement or sales agreement is subordinated to other agreements or otherwise encumbered;
  provisions for cancellation of the agreement by either party; and a legally sufficient
  description of the property. (c) The subscription agreement or sales agreement shall contain provisions detailing the
  risks of acquisition of a cooperative interest including risks resulting from failure
  of all units to be occupied. (d) The subscriber or purchaser shall have a right to cancel the subscription agreement
  or sales agreement without penalty, upon provision of written notice to the offeror
  within 10 days of the date of signing the agreement. In the event of such cancellation,
  all monies paid by the subscriber or purchaser to the offeror shall be returned to
  the subscriber or purchaser within 14 days of receipt of the notice of cancellation
  by the offeror. The offeror shall inform the subscriber or purchaser in writing of
  their right of cancellation. (Added 1987, No. 254 (Adj. Sess.), § 1, eff. June 16, 1988; amended 2023, No. 85 (Adj. Sess.), § 32, eff. July 1, 2024.)