g The Truth About Toll Brothers

The Truth About Toll Brothers

Friday, June 01, 2007

Here you will see the site map prominently displayed in the Sales Model for over four years. This map displays ALL units in the entire development with the exception of the three Condominium Clusters. Funny, the City of Novi requires that the seller disclose ALL the properties in the development. How does Toll get away with this?

Sec. 18-38. Contents of disclosure statement.
The required disclosure statement shall, at a minimum include the following information:
(5) Whether the property is subject to any recorded covenants, conditions or restrictions, including those relating to the following matters, and the content of any such recorded covenants, conditions or restrictions:
(6) A map depicting;
a. All properties subject to the covenants, conditions and restrictions disclosed pursuant to subsection (5) of this section;
e. Whether the subdivisions in which the subject newly constructed single-family residence is located is part of an RUD, residential unit development, or PUD, planned unit development, all properties within the RUD or PUD.

Sec. 18-39. Posting of disclosure statement and zoning and master plan maps.
(a) Where sales of newly constructed single-family residences are made out of a model or sales office located within the city, the seller shall post in a conspicuous location in the model or sales office:
(1) A summary of the information required to be contained in the disclosure statement under section 18-38; and
(2) Copies of the zoning map and legends, master plan map and legends, woodlands map and legends and wetland and watercourse map and legends, for the city, depicting at least the area within a one-mile radius of the location of the subdivision, together with a notice that a prospective purchaser may examine at the offices of the city the most current versions of the zoning map, master plan map, woodlands map and wetlands and watercourses map. In addition, there shall be posted a map of the development depicting all areas regulated as woodlands and all areas regulated as wetlands or watercourses.
(b) Where the sales of newly constructed single-family residences are made out of a model or sales office located within the city, the seller shall make available for inspection by prospective purchasers copies of a disclosure statement as defined by section 18-38.
(d) The information required to be posted pursuant to this section shall be contained on a display no smaller than thirty inches by thirty-six inches (30" x 36"), and be entitled "CITY OF NOVI HOMEOWNER DISCLOSURE" in letters no less than three-quarters ( 3/4) inch high. The display shall include the telephone number of the City of Novi Department of Community Development.

The Michigan Consumer Protection Act applies. Toll maintains that because they are a licensed builder, they fall under the Occupational Code, not the MCPA. Agreed as long as they are hammering a nail into a 2 x 4, but, NOT when they are engaging in deceptive sales practices.

445.903 Unfair, unconscionable, or deceptive methods, acts, or practices in conduct of trade or commerce; rules; applicability of subsection (1)(hh).
Sec. 3.
(1) Unfair, unconscionable, or deceptive methods, acts, or practices in the conduct of trade or commerce are unlawful and are defined as follows:
(s) Failing to reveal a material fact, the omission of which tends to mislead or deceive the consumer, and which fact could not reasonably be known by the consumer.
(v) Taking or arranging for the consumer to sign an acknowledgment, certificate, or other writing affirming acceptance, delivery, compliance with a requirement of law, or other performance, if the merchant knows or has reason to know that the statement is not true.
(y) Gross discrepancies between the oral representations of the seller and the written agreement covering the same transaction or failure of the other party to the transaction to provide the promised benefits.
(z) Charging the consumer a price that is grossly in excess of the price at which similar property or services are sold.
(bb) Making a representation of fact or statement of fact material to the transaction such that a person reasonably believes the represented or suggested state of affairs to be other than it actually is.
(cc) Failing to reveal facts that are material to the transaction in light of representations of fact made in a positive manner.

The Michigan Condominium Act applies. Toll Brothers maintains that the MCA does not apply to them either even though they sold me a unit in a condominium project.

559.108 “Master deed” defined.
Sec. 8.
“Master deed” means the condominium document recording the condominium project to which are attached as exhibits and incorporated by reference the bylaws for the project and the condominium subdivision plan for the project. The master deed shall include all of the following:
(a) An accurate legal description of the land involved in the project.
(b) A statement designating the condominium units served by the limited common elements and clearly defining the rights in the limited common elements.

559.111 Offering residential condominium for sale; compliance with occupational code required.
Sec. 11.
A residential condominium in this state shall not be offered for sale unless in compliance with article 24 or article 25 of the occupational code, Act No. 299 of the Public Acts of 1980, being sections 339.2401 to 339.2412 and 339.2501 to 339.2516 of the Michigan Compiled Laws.

559.132 Expandable condominium project; contents of master deed.

559.146 Restrictions and covenants.

559.149 Subdivision of condominium units.

559.166 Condominium subdivision plan; preparation; signature and seal; contents; recording; structures and improvements to be completed by developer.

559.181a Promotional material; labeling structure or improvement “need not be built.”
Sec. 81a.
If any structure or improvement proposed in a condominium project is labeled pursuant to section 66 “need not be built”, or is to be located within a portion of the condominium project with respect to which the developer has reserved a development right, promotional material may not be displayed or delivered to prospective purchasers which describes or portrays that structure or improvement unless the description or portrayal of the structure or improvement in the promotional material is conspicuously labeled “need not be built”.

559.184a Providing copies of listed documents to prospective purchaser of condominium unit; amendment to purchase agreement and condominium documents; signature on form as evidence; providing prospective purchaser of business condominium unit copy of recorded master deed; misleading statements; violation.
Sec. 84a.
(5) With regard to any documents required under this section, a developer shall not make an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading.

559.190 Amendment of condominium documents; consent; void provision superseded by subsection (2); reservation of right to amend; notice of proposed amendments; costs and expenses; master deed amendment; affirmative vote.

559.215 Action by person or association adversely affected by violation of or failure to comply with act, rules, agreement, or master deed; costs; violation of §§ 559.121 or 559.184a; liability.
Sec. 115.
(1) A person or association of co-owners adversely affected by a violation of or failure to comply with this act, rules promulgated under this act, or any provision of an agreement or a master deed may bring an action for relief in a court of competent jurisdiction. The court may award costs to the prevailing party.
(2) A developer who offers or sells a condominium unit in violation of section 21 or 84a is liable to the person purchasing the condominium unit for damages.

559.241 Law, ordinance, or regulation of local unit of government; limitations.
Sec. 141.
(1) A condominium project shall comply with applicable local law, ordinances, and regulations.


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