Condominium and Subdivision Registration

What Are Condominiums, Cooperatives, Timeshares, & Conversions?

  • Condominium form of ownership means that individual owners own their specific units; and have shared ownership of the common grounds, facilities, and the like, typically referred to as common area which includes the land under the units (typically).  Common area may also include a limited common area, an area in which not all of the unit owners are benefited.  Individual owners pay periodic fees (typically monthly) covering the cost of services, such as shared insurance, maintenance, reserves, and so forth.
  • Cooperative form of ownership means that owners own shares in an entity (a corporation typically) or have beneficial interests in an entity (a trust typically) that owns the building or buildings in which they live, including the land underneath (typically).  Each resident then rents a unit from the entity, with the rent covering the shared costs for the entities’ mortgage, taxes, insurance, maintenance, reserves, and so forth.
  • Timeshare form of ownership can be (depending on the timeshare project details and the buyer’s awareness) a convenient way to have rights to vacation properties.  In a timeshare, owners do not own a particular unit but have a right (either by deed or certificate) to use a unit for a certain period of time periodically (every year, typically).  Fees cover the timeshare owner's portion of the mortgage, taxes, insurance, maintenance, reserves, and so forth.
  • Conversions of residential rental property occur when the owner of the rental property desires to change from a renter-based occupancy base (renters occupying the dwelling units) to an owner-based occupancy base (owners occupying the dwelling unit) as a condominium or cooperative (typically).

What Laws & Regulations Apply?

  • New Hampshire Revise Statutes Annotated (“RSA”) Chapter 356-B governs condominiums, including timeshares, and cooperatives, over which the Bureau has enforcement authority.
  • RSA Chapter 356-C governs conversions of residential, rental properties to ownership properties, over which the Bureau has enforcement authority.  
  • The applicable Department of Justice rules, enforced by the Bureau for condominiums and cooperatives, are contained in Jus 1400 et seq.
  • There are also federal statutes and regulations over which the Bureau does not have enforcement authority.

When Registration With Or Exemption By The Bureau Is Required?

The following must be either registered with or exempted from registration by the Bureau:

  • Residential condominiums of more than 10 units; 
  • All time share condominiums; 
  • Residential cooperatives of more than 10 units; &
  • All residential, rental properties being converted to ownership properties having more than 10 dwelling units.

Both the registration and exemption processes require 1) filing an application with the Bureau; & 2) securing Bureau approval of the application.  

When registration or exemption is required, there are serious penalties, including possible criminal penalties, associated with offering for sale or selling a condominium unit, a timeshare interest, or a cooperative interest without either a Bureau issued registration or exemption.

Using An Attorney For Registration Or Exemption?

  • Creating condominiums and cooperatives and converting residential, rental properties are both legally and factually complicated matters – often involving numerous, subtle legal issues.  The Bureau cannot provide legal advice to an applicant (“Declarant” for all types of applications).  Depending on the particular application the Declarant files with the Bureau, a certification might be required from a member of the New Hampshire bar stating that the application and submitted documents comply with all applicable law.  
  • Accordingly, the Bureau strongly suggests that a prospective Declarant secure the services of a New Hampshire lawyer well versed in condominium or cooperative law (as applicable); and residential, rental conversion law (when applicable), both in preparing applications and in prosecuting applications before the Bureau, both for registration and exemption applications.  
  • Although using an attorney is not always required by the applicable law or regulations, the Bureau notes that Declarants not using well versed attorneys typically 1) require more amendments; 2) have longer review periods; and 3) often end up retaining attorneys prior to receiving Bureau approval of applications.

Bureau Pre-application Assistance:

Although the Bureau cannot give legal advice, the Bureau even prior to an application being filed attempts to assist a Declarant’s counsel by discussing what alternative applications might be filed, the items that are required for each possible application, as well as legal and review issues that are likely to arise during the review process.  There are often many roads leading to an approved application.  The Bureau desires to assist a Declarant getting to the best result for both the Declarant and consumers.  The Bureau does telephone conferences with Declarant’s counsel, as well as virtual and in person conferences when requested – depending upon the Bureau’s case load and staffing at the time of the request.

Forms:

Condominium Registration Forms

Land Sales Registration Forms

 

What Are The Fees?

Condominium Registration Fees

Notice: Please be advised that the fee schedules set out in the forms CPLC 100, Application for Comprehensive Registration (July, 2010) and CPLC110, Abbreviated Application for Registration (July, 2010) do not reflect current statutory requirements. The Consumer Protection & Antitrust Bureau is in the process of amending the forms to bring the price schedules up-to-date, and revised application forms will be posted soon. Until then, please use the following price schedules:

  • $30.00 for every unit
  • $300.00 minimum for initial applications
  • $2000.00 maximum per application
  • $200.00 minimum fee for registration of additional units.

Land Sales Registration Fees

Notice: Please be advised that the fee schedules set out in the forms CPLS 100, Application for Comprehensive Registration (July, 2010) and CPLS110, Abbreviated Application for Registration (July, 2010) do not reflect current statutory requirements. The Consumer Protection & Antitrust Bureau is in the process of amending the forms to bring the price schedules up-to-date, and revised application forms will be posted shortly. Until then, please use the following price schedules:

  • $30.00 for every lot, parcel, unit or interest
  • $300.00 minimum for initial applications
  • $2000.00 maximum per application
  • $200.00 minimum fee for registration of additional lots, parcels, units or interests.

No Sales or Offers to Sale Without a Certificate!

Until the Declarant has either a Bureau issued registration certificate or an exemption certificate the Declarant cannot sale or offer for sale a condominium unit, timeshare interest, cooperative interest, or conversion property – for those condominiums; timeshares; cooperatives; and residential, rental conversions requiring registration with or an exemption from the Bureau.  Therefore, the Declarant should file the application (for registration or exemption) well prior to intending to either offer for sale or actually selling a unit, timeshare interest, cooperative interest, or conversion property – for those condominiums; timeshares; cooperatives; and residential, rental conversions requiring registration with or an exemption from the Bureau.  

What Is The Typical Registration Timeframe?

  • The Bureau attempts to send its comments, requests, and suggestions within 30 days of a complete application for registration or exemption being filed, including the filing fee (if any).
  • Although it varies depending upon the specifics of each project; & the type of application, the Bureau resolves most applications for either registration or exemption within approximately 90 days or less from the filing of a complete application, including the filing fee (if any).
  • The Bureau must act within 60 days of a complete application for either registration or exemption being filed, including the filing fee (if any) – absent an extension agreement between Declarant and the Bureau; & excepting a “Bulk Sale To Builders & Developers” under Jus 1404.17 which has a 30 day deadline – absent an extension agreement between Declarant and the Bureau.  
  • The primary reason for an extension involves affording a Declarant with sufficient time to respond to and resolve all Bureau comments, requests, and suggestions that arise during the Bureau’s application review process.  
  • The Bureau historically has approved the vast majority of applications albeit sometimes with conditions – either precedent, subsequent, or both.
  • The actual time from concept to final resolution often involves far longer than the above.  Securing the necessary municipal approvals – planning board (nearly always) and zoning board of adjustment (often); necessary state approvals – Department of Environmental Services (often) and Department of Transportation (often); necessary federal approvals – Corp of Engineers (occasional); and financing often takes years depending upon the complexity of the project, difficulty of the site, and other factors – over which the Bureau has no control.

When To File?

The Bureau strongly recommends against filing with the Bureau until Declarant 1) has secured all necessary municipal, state, and federal approvals; 2) can demonstrate to the Bureau that Declarant has met and shall continue to meet all statutory and regulatory requirements; & 3) has secured, preferably closed on, Declarant’s financing; otherwise, the application review process typically is delayed or results in additional conditions being imposed (or both).

Buyers Should Be Aware Of The Following Rights!

Under RSA Chapter 356-B, in addition to the registration (or exemption) process and the prohibition on selling or offering to sale until the Declarant has a certificate either of registration or exemption, the law affords prospective buyers important additional rights, including, without limit, the following:  

  1. Declarant must present all material facts about the property to potential buyers (a fact is "material" if it would influence the average person's decision whether to buy the property);
  2. A third party holds buyers' deposits in escrow within New Hampshire until the closing;
  3. Buyers unilaterally, in buyers’ sole discretion, may rescind (cancel) the purchase agreement within 5 days from the latter of the A) signing the purchase agreement or B) receiving the public offering statement – for those projects requiring a public offering statement.  This right cannot be waived.  If a buyer timely cancels the purchase agreement, then buyer should receive the entire deposit within 10 days of cancellation;
  4. Declarant must have made arrangements with Declarant’s mortgage holder (if any) for a Buyer to secure a partial release of the Declarant’s mortgage (if any) regarding the unit or other interest being purchased; &
  5. Some projects require the Declarant to deliver a public offering statement to the buyer before or at the time of the purchase agreement.  When there is a public offering statement, the buyer should review same thoroughly so that the buyer is aware of important disclosure Declarant is making.

Conversion Property Tenants Should Be Aware The Following Rights:

New Hampshire RSA Chapter 356-C covers the rights of protected tenants in buildings that are being converted from residential, rental property to ownership property, typically a condominium or a cooperative.  RSA Chapter 356-C does not apply to all residential, rental properties, see RSA 356-C:2, I [HYPERLINK] for the more common exceptions to the protections of RSA Chapter 356-C.     
Covered tenants (“Tenants”) have specific legal rights before and during conversion as follows:

  1. The property owner (“Declarant”) must notify the Tenants by registered mail 120 days before the Declarant files an application with the Bureau either to register or to seek exemption for the intended condominium or cooperative;
  2. Before filing a registration or exemption application with the Bureau, the Declarant must notify the Tenants of the following:
    1. The Declarant’s name; 
    2. The number of dwelling units or buildings (as applicable) being converted; 
    3. That the conversion must be registered with the Bureau;
    4. That the application will be submitted to the Bureau within 120 days
    5. That Declarant will notify every Tenant when the application is filed with the Bureau; &
    6. That each Tenant will have exclusive right to contract for the purchase of the unit in which the Tenant resides for 30 days after the application is approved by the Bureau unless the unit will be undergoing substantial change; &
  3. A Tenant who does not buy the Tenant’s unit (who is neither elderly nor disabled) has the longer of either A) 270 days or B) lease expiration before being required to vacate (leave) the unit.  An elderly or disabled Tenant who does not buy the Tenant’s unit, has 18 months before being required to vacate the unit.

If You Have a Question, Need Assistance, Or Have Problem:

Contact the Bureau if you have a question, need assistance, or have a problem regarding a condominium, cooperative, timeshare, or rental conversion:

NH Consumer Protection & Antitrust Bureau   
Department of Justice   
1 Granite Place South   
Concord, NH 03301-6397   
603-271-3641