57-11-5 - Registration, public offering statement, and receipt required for sale of subdivided land -- Temporary permit -- Right of rescission.
57-11-5. Registration, public offering statement, and receipt required for sale ofsubdivided land -- Temporary permit -- Right of rescission.
Unless the subdivided lands or the transaction is exempt under Section 57-11-4, all of thefollowing apply:
(1) No person may offer or dispose of any interest in subdivided lands located in this statenor offer or dispose in this state of any interest in subdivided lands located outside of this stateprior to the time the subdivided lands are registered in accordance with this chapter.
(2) Notwithstanding Subsection (1), the division may grant a temporary permit allowingthe developer to begin a sales program while the registration is in process. In order to obtain atemporary permit the developer must:
(a) submit an application to the division for a temporary permit in the form required bythe division;
(b) submit a substantially complete application for registration to the division, includingall appropriate fees and exhibits required under Sections 57-11-6 and 57-11-7 in addition to atemporary permit fee of $100;
(c) provide evidence acceptable to the division that all funds received by the developer ormarketing agent will be placed into an independent escrow with instructions that funds will not bereleased until a final registration has been granted;
(d) give to each purchaser and potential purchaser a copy of the proposed property reportwhich the developer has submitted to the division with the original application; and
(e) give to each purchaser the opportunity to rescind the purchase in accordance with thissection. The purchaser must be granted an additional opportunity to rescind upon the issuance ofan approved registration if the division determines that there is a substantial difference in thedisclosures contained in the final property report and those given to the purchaser in the proposedproperty report.
(3) Any contract or agreement of disposition for an interest in subdivided lands may berescinded by the purchaser without cause by midnight of the fifth calendar day after the executionof the contract or agreement of disposition. This right of rescission may not be waived byagreement. The contract or agreement of disposition shall state in boldface type on the signaturepage above all signatures: YOU HAVE THE OPTION TO CANCEL YOUR CONTRACT ORAGREEMENT OF DISPOSITION BY NOTICE TO THE SELLER UNTIL MIDNIGHT OFTHE FIFTH CALENDAR DAY FOLLOWING THE SIGNING OF THE CONTRACT ORAGREEMENT. WRITTEN NOTICE OF CANCELLATION MUST BE PERSONALLYDELIVERED OR SENT BY CERTIFIED MAIL, POSTMARKED BY MIDNIGHT OF THEFIFTH CALENDAR DAY FOLLOWING THE SIGNING OF THE CONTRACT ORAGREEMENT, TO THE SELLER AT: (Address of Seller).
(4) No person may dispose of any interest in subdivided lands without delivering to thepurchaser an effective, current public offering statement and obtaining a dated, signed receipt forthe public offering statement in a form to be approved by the division from each purchaser. Thesubdivider shall retain each receipt for two years from the date of its execution. All receipts shallbe made available for inspection upon request by the division. Failure to comply with thissubsection shall not constitute a cause of action under Section 57-11-17 but shall be grounds forappropriate action by the division under Sections 57-11-13 and 57-11-14.
Amended by Chapter 86, 2000 General Session