PUBLIC OFFERING STATEMENT
| NAME OF CONDOMINIUM: | LAUREL MEWS, A Townhouse Condominium |
| LOCATION OF CONDOMINIUM | Washington Boulevard and Lee Highway, Arlington County, Virginia |
| NAME OF DECLARANT: | Laurel Properties, Inc. |
| ADDRESS OF DECLARANT: | 1001 North Highland Street Arlington, Virginia |
EFFECTIVE DATE OF PUBLIC OFFERING STATEMENT:
August 23, 1978
Registration No. 78-112
Virginia law requires that the original seller of condominium units disclose fully and accurately the. characteristics of the condominium units being offered for sale. This Public Offering Statement is the means by which such disclosure is to be made. In the event of any misrepresentation made herein, the purchaser should notify the Virginia Real Estate Commission, Post Office Box 1-X, Richmond, Virginia 23202.
Under the law, a purchaser or lessee of a condominium unit is afforded a ten day period during which he or she may cancel the contract of sale or lease and obtain full refund of any sums deposited in connection with the contract. The ten day period begins running on the contract date or the date of delivery of a Public Offering Statement, whichever is later. The purchaser or lessee should inspect the condominium unit and all common areas and obtain professional advice. If the purchaser or lessee elects to cancel, he or she must deliver notice of cancellation to the declarant by hand or by United States mail, return receipt requested.
The Virginia Real Estate Commission does not warrant the accuracy of the statements made herein, nor has it passed on the merits of the condominium units offered for sale. Registration of a condominium by the Virginia Real Estate Commission is not an indication that the actual value(s) of the condominium units is (are) equal to any offering prices stated herein. Any representation which is contrary to the foregoing statements of this paragraph is a violation of state law.
THE CONDOMINIUM CONCEPT
Condominium ownership is a relatively new property right which, in effect, combines two older forms of ownership. The condominium unit owner is (1) the sole owner of the portion of a building which comprises his living quarters and is (2) one of many mutual owners (legally speaking “tenants in common”) of common facilities which service his and other living quarters and of common areas which the unit owner may use and enjoy along with other mutual owners. Each individual unit owner has an “undivided interest” in the common elements which means that all unit owners have a share in the control of all the common elements, but he must also pay his share of the normal expenses of operating and maintaining all the common elements. It is the ownership of an undivided interest in the common elements which sets condominium ownership apart from other forms of property ownership.
Laurel Mews, a Townhouse Condominium, is in all respects a condominium under the laws of the State of Virginia. The term “Townhouse” is used in various places in the documents and describes the type of construction of the condominium units (i.e. townhouse type construction). The reader should be aware that the terms “Laurel Mews, a Condominium” and “Laurel Mews, a Townhouse Condominium” are to be considered one and the same and are used interchangeably throughout the condominium documents.
PURPOSE
This Public’ Offering Statement is made pursuant to Chapter 4.2 of Title 55 of the Code of Virginia known as the Virginia Condominium Act. It is particularly designed to offer full and fair disclosure to prospective purchasers about the subject condominium, Laurel Mews, in Arlington County, Virginia, as provided in Section 55-79.90 of the Code of Virginia.
This Public Offering Statement has been filed with the Virginia Real Estate Commission, as required by Section 55-79.89 and Laurel Mews, a Townhouse Condominium, has been registered under the Virginia Condominium Act.
THE DECLARATION
The condominium will be created and established by the ‘ recording of a Declaration among the Land Records of Arlington County, Virginia. A copy of the Declaration is attached to this Public Offering Statement as Exhibit 1.
The Declaration is the basic instrument of the condominium. It contains provisions specifying the name of the condominium, identifying the property of the condominium, describing and identifying the condominium units, setting up the percentage interest of each unit owner in the common elements, restricting certain actions by condominium unit owners, providing the procedure for expansion of the condominium, setting up a body and procedure for governing the operations of the condominium, and providing in general, for the ownership of condominium units and the rights and responsibilities attendant thereto.
DESCRIPTION OF THE CONDOMINIUM
(a) General Description
Laurel Mews, a Townhouse Condominium, is located approximately three hundred (300) feet east of the intersection of Lee Highway and North Washington Boulevard in Arlington. County,
Virginia.
The condominium consists of twenty (20) townhouse type living units situated on a parcel of land of approximately 49,363 square feet in size. All of the twenty (20) units to be constructed will be offered for sale to the public, however, the Declarant reserves the right to retain any number of units for rental. All units being offered are restricted to residential use, however the Board of Directors of the Association may in its discretion approve a unit for use as a professional office if the zoning ordinances of Arlington County, Virginia, would so allow.
The Declarant has, pursuant to Article VIII of the Declaration, reserved the option to expand the Laurel Mews project. The land onto which the Declarant has reserved the option to expand is immediately to the south and southwest and is shown and labeled as “additional land” on Exhibit “A-1” to the Declaration.
The Declarant presently is the legal owner of record of the “additional land”. Although it is the present intention of the Declarant to expand the condominium pursuant to Article VIII of the Declaration, the Declarant is in no way required or legally ‘obligated to add to Laurel Mews all or any portion of the “additional land”.
If the condominium is expanded pursuant to Article VIII of the Declaration, all of the “additional land” will be added at one time and a maximum of thirty-four (34) units may be created thereon. This would make a total of fifty-four (54) units in the Laurel Mews Condominium. If the “additional lane is added all unit owners (i.e. of the initial twenty (20) units as well as those of the thirty-four (34) units created on the “additional land”) would then have a one-fifty-fourth (1/54) undivided interest in the common and limited common elements of the project. The units to be placed on the “additional land” will be architecturally compatible with the initial twenty (20) units constructed. As with the initial twenty (20) units the Declarant intends to offer the units which may be constructed on the “additional land” to the public but reserves the right to retain any number of the units created on the “additional land” for rental purposes.
(b) Individual Units
The initial twenty (20) units of Laurel Mews shall be of three (3) basic types described as follows:
“A” Type Units
This unit is three (3) stories tall with entry, living room with fireplace, dining room, kitchen and powder room on the first floor; two bedrooms with compartmented baths on the second floor; recreation room with fireplace, study, bath and utility room on the lower level. Some “A” type units have an un- finished attic with “roughed-in” bath accessible by . a permanent stair. Purchasers may for additional cost have the unfinished attic area finished. The “A” type units will contain approximately 1,834 square feet of living area or approximately 2,173 square feet of living area in the attic model, (slight variations in square footage figures will occur in some units).
“B” Type Units
This unit is three (3) stories tall with entry, living room with fireplace, study, utility room and powder room on the lower level; dining room, kitchen and family room with fireplace on the
second level and two bedrooms with compartmented baths on the third level. Some “B” type units have an unfinished attic with “roughed-in” bath accessible by a permanent stair. Purchasers may for additional cost have the unfinished attic area finished. The “B” type units will contain approximately 1,834 square feet of living area or approximately 2,173 square feet of living area in the attic model, (slight variations in square footage will occur in some units).
“C” Type Units
This unit is two (2) stories tall with entry, living room with fireplace, dining room, powder room and kitchen on the lower level and two (2) bedrooms, one with fireplace, and one (1) bath on the second level. This unit has an unfinished attic accessible by a pull down stairs. “C: type units will have approximately 1,270 square feet of living space.
All units will have brick exteriors, privately walled or fenced rear yard areas and a variety of exterior trim treatment of roofs, doors, windows and entrances.
All units will come equipped with a range, refrigerator, dishwasher and garbage disposal, and wall-to-wall carpeting in the living room, dining room and bedroom areas. The laundry area will have roughed-in plumbing and electrical installations for the connection of a washer and dryer. Washers and dryers may be purchased as an option.
Each purchaser of a unit in Laurel Mews will own a fee-simple interest in his unit and in addition will own an equal undivided interest or share with other unit owners in the common and limited common elements of the condominium. The purchaser of a unit will be responsible for the care and upkeep of his individual unit and any limited common elements for which his unit is given responsibility by the condominium documents.
Because of the relatively small number of units in Laurel Mews and the physical characteristics of the individual units, the condominium documents for Laurel Mews have been drafted in such a manner as to provide for maximum participation and maintenance responsibility on the part of individual unit owners and less on the part of the condominium unit owners association.
It is significant to note that the description of the individual family units contained in Article IV of the Declaration differs from the descriptions of an individual family unit used in many other condominium documents in that the purchaser will own the entire exterior of his unit including the shingles on the roof, and all mouldings, decorative trim, rake boards, and metal capping and finishing, except where there is a common wall and in that case he will own to the centerline of that wall. Also included within the definition of the individual unit will be all of the mechanical elements which serve only one unit. Inasmuch as the condominium documents provide for individual unit owners to be responsible for the upkeep and maintenance of individual elements the individual purchasers of these units, unlike in most condominiums, will be responsible for the upkeep and maintenance of all interior and exterior parts of the units.
(c) Common Elements
The common elements are defined as all of the rest of the condominium other than the individual family units as described above. All common elements are owned as an undivided interest by all unit owners. The use of such common elements is also available to all unit owners or occupants unless a common element is designated as a limited common element. Limited common elements are those assigned or restricted to the use of a particular unit.
It is significant to note that the cost and obligation of upkeep and maintenance of limited common elements in the Laurel Mews project is the obligation and responsibility of the unit owner to which the particular limited common element is specifically de¬signated on the condominium plat, except for the designated parking spaces which are limited common elements which shall be a common obligation.
The limited common elements of the project include the rear yard areas as well as some parking spaces which are specifically designated as limited common elements on the condominium plat.
In Laurel Mews, a Townhouse Condominium, each unit shall have an equal undivided interest in the common and limited common elements. In the initial construction (i.e. the first twenty (20) units) each unit will have a one-twentieth (1/20) ‘undivided interest. If the condominium is expanded to the maximum allowed by the Declaration, each unit owner will have a one-fifty-fourth (1/54) undivided interest in common and limited common elements.
Common elements serving all units in the project will be completed simultaneously with the development of the project. Certain common elements (i.e. the storm water detention Cacilitios) will be constructed by the Declarant on the “additional land.”
Although the Declarant does not have any obligation to add the “additional land” to the condominium, the Declarant in Article X of the Declaration, has created over the “additional land” in favor of the initial twenty (20) units of Laurel Mews, an “easement for storm water management”. This easement will insure the initial twenty (20) units continued access to storm water detention facilities in the unlikely event the “additional land” is not added by Declarant.
The initial twenty (20) units of Laurel Mews has a total of forty-nine (49) parking spaces as more particularly shown on the condominium plat. Each individual town-house unit has been assigned one (1) specific numbered parking space which is designated on the condominium plat as a limited common element pertaining to that particular unit. The remaining nineteen (19) spaces are for the general use of the project, visitors and guests. Should the “additional land” be added by Declarant there will be sixty (60) more spaces added which would give a total of one : hundred nine (109) spaces for the entire project. As with the•initial twenty (20) units, each unit to be placed on the “additional land” will have one (1) specific space designated to it as a limited common element while the remaining spaces will be for the use of the Laurel Mews project as a whole.
All parking areas, whether common or limited common elements, will be maintained by the Unit Owners Association and the cost of such maintenance shall be a common expense to be shared equally by all unit owners. It is anticipated that the common elements serving the initial twenty (20) units will be completed by December of 1978.
THE DECLARANT
The Declarant, Laurel Properties, Inc., was incorporated in the State of Virginia on June 3rd of 1974, and since that date has been involved in the acquisition of land and the development of small residential communities in the Northern Virginia area. The Declarant has recently completed three (3) other condominium projects in the area, Laurel Place which was duly registered with the Virginia Real Estate Commission on April 23, 1976 (Registration No..76-103), Laurel Woods, A Townhouse Condominium, which was duly registered with the Virginia Real Estate Commission on August 19, 1976, (Registration No. 76-113), and Laurel Green, A Townhouse Condominium, which was duly register¬ed with the Virginia Real Estate Commission on January 10, 1977, (Registration No. 76-125). The Declarant also has a partial ownership interest in Laurel Courts, A Townhouse Condominium, which was duly registered with .the Virginia Real Estate Commission on November 23, 1976, ,(Registration No. 76-121).
The officers and directors of Laurel Properties, Inc., with their home addresses are:
Mr. Frederick E. Sheridan, President and Member of Board of Directors
7025 Churchill Road
McLean, Virginia
Mr. Sheridan is an AIA architect (Virginia Registration No. 1069) and is also a partner in the architectural land planning and consulting firm of Sheridan, Behm, Eustice & Associates, 1001 1001 North Highland Street, Arlington, Virginia. Mr. Sheridan has been involved in designing, and consulting, throughout the Northern Virginia area since 1953.
Mr. Robert F. Behm, Vice President and Member- of Board of Directors
5510 Yorktown Boulevard
Arlington, Virginia
Mr. Behm is an AIA architect (Virginia Registration No. 1151) and is also a partner in the architectural, land planning and consulting firm of Sheridan, Behm, Eustice & Associates, 1001 North Highland Street, Arlington, Virginia. Mr. Behm has been involved in designing, land planning and consulting in the Northern Virginia area since 1955.
Mr. Brockhurst C. Eustice Secretary-Treasurer
7041 Brockton Court and Member of Board
Springfield, Virginia of Directors
Mr. Eustice is an AIA architect, (Virginia Registration No. 02063) and is also a partner in the architectural, land planning and consulting firm of Sheridan, Behm, Eustice & Associates, 1001 North Highland Street, Arlington, Virginia. Mr. Eustice has been involved in designing, land planning and consulting in the Northern Virginia area since 1964.
OFFERING PRICES
The Declarant has not yet established offering prices for the condominium units. When offering prices are established, those .prices will be subject to change at any time.
FINANCING
The Declarant has obtained a loan commitment from Unity Mortgage Company (4231 Markham Street, Annandale, Virginia), to make, within the limits of said commitment, conventional and VA First Deed of Trust loans secured by owner occupied units in the project. The maximum term of said loans not to exceed thirty (20) years. All loans will be made at the then market rate and will be subject to such terms and conditions as the lender may impose.
Any VA loans will be subject to all rules and regulations of the Veterans Administration.
Purchasers should be aware that as of the date of this Public Offering Statement, Declarant has not obtained Veterans Administration approval for VA financing.. Declarant shall not be obligated to seek such approval or to participate in any VA financing should such approval be obtained.
STATUS OF TITLE, LIENS AND ENCUMBRANCES
All land submitted by the Declarant is owned in fee simple by the Declarant by virtue of deeds recorded in Deed hook 1958 at Pages- 1566, 1579 and 1594, among the land records of Arlington County, Virginia
The property is subject to the following liens of record:
Deed of Trust from Declarant to Earl E. Shaffer and William G. Brown, IV, Trustees, dated December 17, 1977, and recorded December 20, 1977, in Deed Book 1958 at Page 1569, securing the payment of one promissory note in the original principal sum of $103,431.20.
Deed of Trust from Declarant to Walter H. Lockewandt and Stephen K. Christenson, Trustees, dated December 15,1977, and recorded December 20, 1977, in Deed Book 1958 at Page 1582, securing five (5) separate promissory notes in the aggregate principal sum of $274,450.50.
Deed of Trust from Declarant to Benjamin W. Dulany and James R. Michel, Trustees, dated December 15,1977, and recorded December 20, 1977, in Deed Book 1958 at Page 1957, securing two promissory notes in the aggregate principal sum of $43,998.54.
In addition Declarant intends to place a construction loan which will be secured against the property. It is anticipated that this loan will be made by Clarendon Bank & Trust.
Arrangements will be made with all noteholders for either individual partial releases or payment in full as units are sold.
Purchasers should be aware that the Virginia Condominium Act requires that upon conveyance of a unit by the Declarant to a purchaser all mortgage deeds of trust and other perfected liens shall be paid and satisfied and the subject unit released (See Section 55-79.46(a)).
The “additional land” which may be submitted is also owned in fee simple by the Declarant and was acquired by Declarant by virtue of deeds recorded among the land records of Arlington County, Virginia, in Deed Book 1958, at Pages 1566, 1579 and 1594, respectively.
The “additional land” is subject to the following liens of record:
Deed of Trust from Declarant to Walter II Lockowandt and Stephen K. Christenson, Trustees, dated December 15, 1977, and recorded December 20, 1977, in Deed Book 1958 at Page 1582, securing five (5) separate promissory notes in the aygregate principal sum ef $274,450.50.
Deed of Trust from Declarant to Benjamin W. Dulany and James R. Michal, Trustees, dated December 15, 1977, and recorded December 20, 1977, in Deed Book 1958 at Page 1597, securing two promissory notes in the aggregate principal sum of $43,998.50.
Deed of Trust from Declarant to Earl E..haffer and William G. Brown, IV, Trustees, dated December 17, 1977, and recorded December 20, 1977, in Deed Book 1958 at Page 1569, securing the payment of one promissory note in the original principal sum of $103,431.20.
It is also anticipated that if the “additional land” is added Declarant will place a construction loan against said land to finance construction of units on the “additional land”.
In addition to the above liens the land initially submitted arid the “additional land” are subject to the usual utility easements for water, sewer, electric and telephone service, none of which affect the marketability of the title to the land.
RESTRICTION ON TRANSFER
The condominium documents impose no restrictions on the right of any unit owner to sell, transfer or alienate his interest in his unit.
UNIT OWNERS ASSOCIATION
The Unit Owners Association is the organization which controls the operation of the condominium. This Association will come into existence at such time as the By-Laws are recorded among the land records of Arlington County, Virginia. Every unit owner has a voice in the organization and all units in the condominium will have an equal vote. The powers and duties of the Unit Owners Association are governed by the By-Laws (see By-Laws attached hereto as Exhibit 2 for details). The Association after the Declarant’s control period will meet at least once a year and elect a Board of Directors consisting of three (3) members.
In order to carry out the business of the condominium, By-Laws are provided which set forth all those requirements normal to a housing association. The By-Laws are attached to this statement and purchasers are encouraged to read them in their entirety. As provided for by the Virginia Condominium Act, the Declarant has reserved the right to designate the Board of Directors of the Association created by the By-Laws until such time as 75% of all units (including those which may be constructed on the “additional land”) have been sold and settled or until five (5) years from the date of the recordation of the Declaration, whichever occurs first.
The By-Laws provide for a Board of Directors to be appointed initially by the Declarant. At a later date, in accordance with the Act, a Board of Directors, consisting of three (3) members will be elected by the unit owners at large. Any unit owner will be qualified to serve on the Board and the terms of office of the Directors will be staggered to insure continuity of the Board.
Annually the Board of Directors will prepare a budget for the operation and maintenance of common elements and such budget will provide the basis on which each unit owner’s quarterly assessment is computed. All unit owners will pay the same quarterly assessment.
Most condominium documents provide for monthly assessments. However, inasmuch as individual owners will bear the expense of insurance, maintenance and upkeep of both the interior and exterior of their individual units plus many costs of maintenance of the exterior limited common elements pertaining to their units, it is anticipated that condominium fees will be relatively small. Therefore, it would be administratively impractical to collect these fees on a monthly basis.
The By-Laws provide that the Board of Directors may set up such reserve funds as may be necessary for future maintenance or replacement of common elements. The Board of Directors is also empowered to levy special assessments to all units should they be-come necessary. In order to provide the condominium with sufficient funds to commence business, each unit owner will contribute Eighty Dollars ($80.00) at settlement as a contribution to the initial working fund of the condominium.
SURROUNDING AREA
Laurel Mews is located near the intersection of North Washington Boulevard and Lee Highway in Arlington County, Virginia. Laurel Mews is bounded on the North by Lee Highway, facing the main office of Arlington-Fairfax Savings and Loan Association, is bounded on the East by the C & P Telephone building, on the South by North Washington Boulevard and the right-of-way of I-66, and is bounded on the West by the Exxon Service Center.
FINANCIAL MATTERS
As stated earlier, Laurel Mews has been structured so as to place more responsibility for maintenance upon individual unit owners thereby keeping shared or common expenses to a minimum.
Common expenses will include such items as liability insurance premiums on common areas, common paved area maintenance, maintenance of storm water detention facilities, fence and wall maintenance and general administrative expenses. As in most condominiums, expenses which arise from operation, maintenance, repair, improvement, or alteration specifically benefitting an individual unit or made necessary by the conduct of an individual unit owner may be assessed directly to the unit owner. Common expenses, assessed against the unit owner, will give rise to a lien enforced by foreclosure or other legal remedies.
Article X, Section 1(e) of the By-Laws provides that assessments for common expenses not paid within fifteen (15) days of their due date shall bear interest at eight percent (8%) per annum.
The projected budget for the first year of operation of the condominium is as follows:
PROJECTED BUDGET FOR FIRST YEAR’S OPERATION LAUREL MEWS
| TOTAL ANNUAL COST | PER UNIT ANNUAL COST (20 UNITS) | |
| Public Liability Insurance (Common Area) | 1,000.00 | 50.00 |
| Fire and Extended Coverage on common walls and accessory buildings I & IV | 170.00 | 8.50 |
| Water and sewer | 2,300.00 | 115.00 |
| Trash | 1,000.00 | 50.00 |
| Electricity (site lighting) | 175.00 | 8.75 |
| Fence, wall and walk maintenance | 265.00 | 13.25 |
| Storm water detention facility maintenance | 250.00 | 12.50 |
| Snow removal | 300.00 | 15.00 |
| Lawn and garden maintenance | 1,100.00 | 55.00 |
| TOTAL ANNUAL BUDGET | 6,560.00 | 328.00 |
All common expense items will be shared by all unit owners
Unlike most condominiums, the Laurel Mews Unit Owners Association will collect condominium fees on a• quarterly rather than monthly basis.
The quarterly installments will be due on January 1, April 1, July 1 and October 1 of each year. Condominium fees will be prorated at settlement.
In addition, at settlement each unit owner will be required to contribute Eighty Dollars ($80.00) toward the initial working capital fund of the condominium.
The Laurel Mews condominium documents provide that the Laurel Mews Unit Owners Association may in its discretion require reserves for replacement of common elements. Inasmuch as the Laurel Mews documents provide for a minimum of commonly shared expense items, the Declarant has made no provision for reserves in its estimated budget.
TAXES
The County of Arlington presently assesses all real estate for tax purposes at 100% of fair market value. The tax rate set by Arlington County for the first half of 1978 is $1.49 per $100.00 of assessed value. Each unit owner can determine a reasonable estimate of the anticipated annual real estate taxes on his unit by multiplying the fair market value by .0149. Declarant is not aware of any other taxes or special assessments that may be charged to a unit owner by reason of his ownership of a Laurel Mews condominium unit.
ZONING, HOUSING AND BUILDING CODES
Building permits for the initial twenty (20) units of the project were applied for in March of 1978, and construction on these units will begin in March of 1978. It is anticipated that the initial twenty (20) units as well as the common and limited common elements serving said units will be completed by December of 1978. Both the initial parcel submitted, as well as the “additional land”, is zoned in the RA-8-18 category in Arlington County, Virginia; said zoning permits the construction of the type of structures to be built. All units and common facilities shall be in accordance with all applicable Arlington County Zoning Ordinances and Building Codes.
INSURANCE
The By-Laws require the Unit Owners Association to carry for all common areas of the condominium, Multi-Peril insurance coverage as well as Public Liability insurance.
LAUREL MEWS, A TOWNHOUSE CONDOMINIUM
ARLINGTON COUNTY, VIRGINIA
Dated: March 26, 1979
AMENDMENT TO PUBLIC OFFERING STATEMENT
The section entitled “DESCRIPTION OF THE CONDOMINIUM” is hereby amended to reflect the following:
1) That the Declarant intends to exercise its option to expand the Condominium pursuant to Article VIII of the Declaration and the Declarant will add the parcel of. land described as “Additional Land”, containing 72,304 square feet of land and described in Schedule “B” to the Declaration.
2) The 72,304 square foot parcel of land added will contain a total of 34 additional Townhouse Condominium Units.
3) The additional 34 Units added shall be of the same basic style and types as those created on the Submitted Land.
4) The Declarant anticipates securing construction financing for the additional 34 units by mid June of 1979, and anticipates completion of the additional units, together with the Common Elements ? serving said units, no later than the Fall of 1980.
5) That upon the recordation among the land records of Arlington County, Virginia, of the Amendment to Declaration of LAUREL MEWS, A Townhouse Condominium, (a copy of said Amendment being attached hereto) LAUREL MEWS, A Townhouse Condominium, will consist of a total of fifty-four (54) units.