57-19-11 - Disclosure required.
57-19-11. Disclosure required.
Except in a transaction exempt under Section 57-19-26, any person who sells or offers tosell an interest in a project located in this state, or who sells or offers to sell in this state an interestin a project located outside of this state, shall provide to the prospective purchaser, before theprospective purchaser signs an agreement to purchase an interest in a project or gives any item ofvalue for the purchase of an interest in a project, a written statement which provides a full and fairdisclosure of information regarding the project and the purchaser's rights and obligationsassociated with the purchase of an interest in a project. The written disclosure shall be on theproperty report form required by the division and shall include:
(1) the name and address of the developer;
(2) a statement whether or not the developer has ever been:
(a) convicted of a felony, or any misdemeanor involving theft, fraud, or dishonesty; or
(b) enjoined from, assessed any civil penalty for, or found to have engaged in theviolation of any law designed to protect consumers;
(3) a brief description of the developer's experience in timeshare, camp resort, or anyother real estate development;
(4) a brief description of the interest which is being offered in the project;
(5) a description of any provisions to protect the purchaser's interest from loss due toforeclosure on any underlying financial obligation of the project;
(6) a statement of the maximum number of interests in the project to be marketed, and acommitment that this maximum number will not be exceeded unless disclosed by filing anamendment to the registration as provided in Section 57-19-9 prior to the amendment becomingeffective;
(7) any event which has occurred as of the date of the offer which may have a materialadverse effect on the operation of the project; and
(8) any other information the director considers necessary for the protection ofpurchasers.
Amended by Chapter 165, 1991 General Session