Page images

amendatory material unless the Secre of Record or Property Report except for tary shall notify the developer in writing any material change which may have prior to such 30th day either that: occurred. A material change shall be

(1) The effective date has been sus specifically described and shall be suppended in accordance with g 1710.45(a), ported by such documentation as would or

be required in connection with an initial (2) An earlier effective date has been filing. Any such amendments shall be determined by the Secretary.

accompanied by: $ 1710.22 Consolidated Statements of

(1) A letter from the developer giving Record.

a narrative statement fully explaining

the purpose and significance of the If in connection with lots previously amendment and referring to that part offered for sale and covered by an effec

and page of the Statement of Record tive Statement of Record, the developer which is being amended. intends to offer additional lots as part (2) All pages of the Statement of Recof a common promotional plan, either a

ord, which have been amended, retyped new or a consolidated Statement of Rec

in the approved format reflecting the ord must be filed. If no additional land

amendments. is offered for sale, but simply additional (3) A copy of the Property Report, if lots through replatting the same land, amended. then the filing may be amended; but in such instance the developer must pay for

$ 1710.25 State filings—in general. the amendment as per fee schedule (for (a) Material filed with and found acconsolidations) under $ 1710.35 (c) or ceptable by State authorities charged (e). The fee shall be based on the addi with the responsibility of regulating the tional lots to be offered for sale as a sale of lots in subdivisions may be acresult of the replatting of the land. The cepted for filing by the Secretary as developer shall answer specifically each meeting the requirements of this part if question in the Statement of Record

the Secretary determines such action to and submit a new Property Report. The

be appropriate and such determination developer may not incorporate by refer is set forth in $ 1710.26. Material filed ence answers to questions or supporting with the Secretary under this section documentation in the previous filing, ex must be accompanied by a statement cept that supporting documentation may from the appropriate State authority be incorporated by reference in those in which states substantially that: stances where it is applicable specifically

The Department of Real Estate (or Real to both the original filing and to the

Estate Commission or Securities Commisadditional lots to be offered. In all other

sion) has reviewed the copies of documents respects the consolidated Statement of attached to this filing and finds that these Record shall conform to the format re copies consist of pages and that they quirements of an initial Statement of are copies of all documents upon which the Record filed in accordance with these Public Report (or Public Offering Statement regulations.

or Public Statement), which became effective on

--, 197.-, is based. $ 1710.23 Amendments—Statement of Record and Property Report--form

(b) Where duplicate material has and filing.

been accepted for filing by the Secretary

under paragraph (a) of this section and (a) An amendment to an effective Statement of Record or to a Property

such material, or any part thereof, for Report shall be filed with the Secretary

any reason, is no longer acceptable to the if any material change occurs in any

State authorities or effective in that representation of fact made in such

State, the filing with the Secretary shall statement or report. An amendment shall

be ineffective unless amended pursuant be filed within 15 days of the date on to $ 1710.27. which the developer knows or should (c) The effective date of a State filing have known that there has been a ma shall be determined in accordance with terial change. The OILSR number of the the provisions of $8 1710.20 and 1710.21. Statement of Record shall appear at

$ 1710.26 State filings-acceptable filthe top of each page of the material submitted.

ings. (b) An amendment to a Statement of (a) Pursuant to $ 1710.25, the SecreRecord or Property Report shall incor tary may determine from time to time porate by reference the prior Statement that material filed with and found ac

ceptable by state authorities may be ac amendment or additional material has cepted as meeting the requirements of been allowed to become effective. this part. The Secretary's current deter (2) A letter from the developer giving mination is that no initial filings filed a narrative statement fully explaining with and accepted by any State after the purpose and significance of the January 1, 1975, will be accepted as meet amendment or consolidation and refering the requirements of $ 1710.25. This ring to that part and page of the Statedetermination is subject to periodic re ment of Record which is being amended. evaluation.

(3) All pages of the Statement of (b) Developers who have effective fil Record, which have been amended, reings with the States listed below and typed in the approved format reflecting whose filings have been accepted by the

the amendments. Secretary prior to January 1, 1975, may (4) A copy of the Property Report, if continue to have consolidations and amended. Emendments to those filings accepted by (5) The material filed with and found the Secretary pursuant to § 1710.25: acceptable by the State authorities as a (1) California.

consolidation or an amendment must be (2) Florida, except as to material filed accompanied by the statement required with State authorities prior to enactment by $ 1710.25. of section 478, Florida statutes, effective (b) Requirement for amendment. August 1, 1967.

The Statement of Record and Property (3) Hawaii, except as to material filed Report shall be amended within 15 days with the State authorities prior to the of the date on which the developer knows enactment of Act 223, Session Laws of or should have known that there has Hawaii 1967.

been a material change. (4) New York.

(c) Effective date-State filing. The Material filed with one of the above

effective date of a State filing consolida

tion or amendment shall be determined States for a subdivision located outside of that State will not be acceptable as a

in accordance with the provisions of Statement of Record for the purposes

§ 1710.21. of this part unless some of the lots to be & 1710.32 Use of Property Reportsoffered in the subdivision are filed and misstatements or omissions prohibeffective with the state and the Office of ited; representation of HUD approval Interstate Land Sales Registration prior prohibited. to April 1, 1974. The developers of such

Nothing in this part shall be construed subdivisions may continue to file amend to authorize or aprove any use of a ments and consolidations in accordance

Property Report containing any untrue with the procedures for state filings. statement of a material fact or omitting [39 FR 9433, Mar. 11, 1974; as amended at to state a material fact required to be 39 FR 39720, Nov. 11, 1974]

stated therein. Nor shall anything in this § 1710.27 State filings-consolidations

part be construed to authorize or permit and amendments.

any representation that the Property Re

port is prepared or approved by the Sec(a) Procedures. Where materials filed

retary, OILSR or the Department of with State authorities also has been filed

Housing and Urban Development. with the Secretary pursuant to § 1710.25, and subsequent thereto, the State au

§ 1710.35 Payment of fees. thorities approved amendments or a con (a) Method of payment. Fees shall be solidation to such material, copies of paid by certified check or cashier's check amended or consolidated material, as

or postal money order. Such check or approved, shall be filed with the Secre

money order shall be payable to the tary. The OILSR number shall appear at

Treasurer of the United States.

(b) Initial filing. The fee, not to exthe top of each page of the material sub

ceed $1,000, for the initial filing of a mitted. Such a filing shall be made with

Statement of Record, shall be, as set the Secretary within 15 days after it be

forth in column 1 of paragraph (f) of comes effective under the applicable

this section, based on the number of lots State laws and shall include the follow in the offering. ing additional items:

(c) Consolidated filing. The fee, not (1) A letter or other document from to exceed $1,000, for filing a consolidated the State authorities stating that the Statement of Record, shall be, as set


forth in column 2 of paragraph (f) of (g) Exemption order or exemption this section, based on the number of lots advisory opinion. The fee for an exempin addition to the number which were tion order or exemption advisory opinion offered in the initial Statement of (8 1710.14 or 8 1710.15) shall be $100, Record.

which shall not be refundable and is to (d) Initial State filing. The fee, not to be collected as follows: exceed $1,000, for an initial filing of a (1) When the developer files a conduplicate of material filed with a State current submission-request for exemp($ 1710.25), shall be, as shown in column tion/Statement of Record-pursuant to 3 of paragraph (f) of this section, based 8 1710.17, the fee required by paragraphs on the number of lots in the offering. (b) through (e) of this section shall be

(e) Consolidated State filing. The submitted. If the Secretary advises or fee, not to exceed $1,000, for the filing of orders that the offering is exempt under a duplicate of material filed with a State $ 1710.10, $ 1710.13, or $ 1710.14 and the covering a number of lots in addition to developer does not notify the Secretary the number contained in the initial of within 30 days thereafter that he intends fering approved by the State ($ 1710.27), for the Statement of Record to remain in shall be, as shown in column 4 of para

effect, the Secretary will refund the subgraph (f) of this section, based on the

mitted fee except for $100. If the denumber of lots being added to the num

veloper notifies the Secretary that he ber in the initial offering. This para

intends for the Statement of Record to

remain in effect or if the request for graph applies only in those instances

exemption is denied the fee required by where the State has permitted the con

this paragraph will be retained. solidation of the additional number of

(2) When the developer files a request lots with those included in the initial

for an exemption order or advisory opinoffering.

ion not accompanied by a complete (f) Fee schedule. The following chart Statement of Record, the fee of $100 shall shall be used in computing fees required be submitted. If the Secretary finds that to be paid under paragraphs (b), (c), the filing of a complete Statement of (d), and (e) of this section.

Record is required, the fee of $100 shall be applied as a credit toward the fee

required for the filing of the complete

Fees column Number of lots

Statement of Record. 2 3

(h) Amendments. A fee of $100 shall

be charged for the filing of the second 1-50. $300 $250 $225 $125 and subsequent preeffective amendments

for any initial or consolidated filing, un

less this requirement is waived by the 251-300

350 250

Secretary. Waiver of this requirement 301-350.

must be in writing. No fee will be charged 351-400

for the first preeffective amendment or 700

any posteffective amendment. 501-550 551-600

$ 1710.45 Suspensions. 601-650 651-700 950

(a) Suspension notice-prior to effec1,000

tive date. (1) A suspension notice with 1,000 1,000

1,000 1,000 625 525 respect to a Statement of Record or an 851-900 1,000 1,000 650


amendment may be issued to a developer 901-950. 1,000 1,000

575 951-1,000.. 1,000 1,000

by the Secretary within 30 days after 1,001-1,050.


the date of filing if prior to its effective 1,051-1,100..

1,000 1,000 750 1,101-1,150. 1,000 1,000 775

date, the Secretary has reasonable 1,151-1,200

1,000 1,000

800 700 grounds to believe that a Statement of 1,201-1,250 1,000 1,000

Record is on its face incomplete or inac1,251-1,300

1,000 1,000 1,301-1,350. 1,000 1,000


curate in any material respect; or prior 1,351-1,400 1,000 1,000 900 800

to its effective date, the Secretary has 1,401-1,450.

1,000 1,000 925 1,451-1,500. 1,000 1,000

reasonable grounds to believe that an 1,501-1,550.


61-100. 101-150 151-200 201-250

300 350 400 450

280 275 300 325

150 175 200 225

350 400 450 500 550 600 650 700 750 800 850 900

550 600 650

401-450 451-500

750 800 850 900 950

375 400 425 450 476 500 525 550 678 600

275 300 325 350 375 400 425 450 475 500

701-750 751-800 801-850


675 700 725


825 850 875





1,000 1,000 975 875 amendment is on its face incomplete or 1,551-1,600.

1,000 1,000 1,000 1,601-1,650.

inaccurate in any material respect. 1,000 1,000

1,000 1,651-1,700. 1,000 1,000 1,000

(2) Suspension notices issued pursuant 1,701-1,750 1,000 1,000 1,000 975

to this subsection shall suspend the effec1,761-or more. 1,000 1,000 1,000 1,000

tive date of the statement or the amend


day of

ment until 30 days, or such earlier date action is necessary or appropriate in the as the Secretary may determine, after public interest or for the protection of the developer files such additional infor purchasers. mation as the Secretary shall require.

(4) Suspension orders issued pursuant (3) A developer, upon receipt of a sus to this subsection shall operate to suspension notice may request a hearing pend the Statement of Record as of the within 15 days of receipt of such notice. date the order is either served on the Such hearing shall be held within 20 developer or his registered agent or is days of receipt of such request by the delivered by certified or registered mail Secretary.

to the address of the developer or his (4) Suspension notices issued pur authorized agent. suant to this section shall continue in

(38 FR 23875, Sept. 4, 1973; 38 FR 32444, effect until all deficiencies cited in the

Nov. 26, 1973] notice are corrected. (b) Suspension orders-subsequent to

Subpart B-Reporting Requirements effective date. (1) A notice of proceed 8 1710.101 Claim of exemption-forings to suspend an effective Statement of mat of affirmation. Record may be issued to a developer if the Secretary has reasonable grounds to

A claim of exemption pursuant to believe that an effective Statement of

§ 1710.11 shall be made to the Office of Record includes an untrue statement of Interstate Land Sales Registration, Dea material fact, or omits a material fact partment of Housing and Urban Develrequired by the Act or the rules and regu opment, and shall be supported by an lations, or omits a material fact which afirmation as follows: is necessary to make the statements

CLAIM OF EXEMPTION therein not misleading. The Secretary may, after notice, and after opportunity

I hereby afirm on this

19.., as follows: for a hearing requested within 15 days

(1) I am the developer, or the duly auof receipt of such notice, issue an order

thorized agent of the developer, of the subsuspending the Statement of Record. In

division known as the event that a suspension order is located at

in tho issued, such order shall remain in effect State of

-, County until the developer has amended the Statement of Record or otherwise com


(2) Each and every purchaser or lessee of plied with the requirements of the order.

a lot to be covered by this exemption, or his When the developer has complied with

or her spouse, prior to his signing a contract

to purchase or lease will have: the requirements of the order, the Secre

(a) Made a personal on-the-lot inspection tary shall so declare and thereupon the

of the real estate which he purchases or suspension order shall cease to be leases; and effective.

(b) Acknowledged, in writing, receipt of (2) If the Secretary undertakes an & statement furnished by the developer setexamination of a developer or his records

ting forth all reservations, restrictions, taxes, to determine whether a suspension order

and assessments applicable to the lot to be should be issued, and the developer fails

purchased or leased whether or not such

reservations, restrictions, taxes, or assessto cooperate with the Secretary or ob

ments are included within the term "liens, structs, or refuses to permit the Secre encumbrances, and adverse claims" as used tary to make such examination, the Sec in paragraph (7) below. retary may issue an order suspending (3) This affirmation is accompanied by a the Statement of Record. Such order Statement of Reservations, Restrictions, shall remain in effect until the developer

Taxes, and Assessments prepared in accordhas complied with the requirements of

ance with the provisions of 24 CFR 1710.102. the order. When the developer has com

The Secretary's approval of such statement

will be obtained prior to its distribution and plied with the requirements of the order, the Secretary shall so declare and there (4) The Statement of Reservations, Roupon the suspension order shall cease to strictions, Taxes, and Assessments is combe effective.

plete and correct. (3) Upon receipt of an amendment to (5) The receipt of such statement will be an effective Statement of Record, the

acknowledged in writing, in duplicate, by Secretary may issue an order suspending

the purchaser or lessee prior to the time of

the signing of the contract. the Statement of Record until the

(6) A copy of the acknowledged statement amendment becomes effective if he has will be filed with the Secretary within 31 reasonable grounds to believe that such days after the expiration of the calendar year


Owner (1f developer is other than owner)

in which the sale or lease is made. Upon demand by the Secretary made at any time during the calendar year, the developer shall file such copies of such acknowledged statements as shall be specified by the Secretary.

(7) At the time of sale or lease, the lot will be free and clear of all liens, encumbrances, and adverse claims. The term iens, encumbrances, and adverse claims" (as used in this paragraph) is not intended to include property reservations which land developers commonly convey or dedicate to local bodies or public utilities for the purpose of bringing public services to the land being developed, nor to taxes and assessments imposed by a State, by any other public body having authority to assess and tax property or by a property owners' association, which, under applicable State or local law, constitute liens on the property before they are due and payable, nor to beneficial property restrictions which would be enforceable by other lot owners or lessees in the subdivision.

(8) For the purpose of this claim of exemption, the undersigned agrees that the “time of sale or lease" shall be deemed to be the date the sales contract or lease is signed by the purchaser or lessee except that the "time of sale" shall be deemed to be the effective date of the conveyance or lease 1 both of the following requirements are met:

(a) The contract of sale requires delivery of a deed to the purchaser within 120 days following the signing the les contract.

(b) Any earnest money deposit or other payment on account of the purchase price made by the purchaser prior to the effective date of the conveyance will be placed in an escrow account, fully protecting the interests of the purchaser, in an institution or organization which has trust powers, or in an established bank, title insurance, or abstract company, or escrow company doing business in the jurisdiction in which the property 18 located.

Name of subdivision..
Number of lots in subdivision.--
Number of acres in subdivision...

1. Reservations and restrictions.

(The developer shall set forth, in descriptive and concise terms, a complete statement of all reservations and restrictions affecting the property within the above-named subdivision. Where reservations or restrictions are not applicable to all lots within a subdivision the statement shall identify the lots affected. State whether such reservations and restrictions are enforceable by other lot owners or lessees of lots in the subdivision. Reference to instruments of record shall include a specific citation to the public record in which such instruments are recorded or filed by book, page, and place of record.)

2. Taxes,

(The developer shall set forth, in descriptive and concise terms, a complete statement listing all taxes and liens presently due and payable and those which constitute liens on the property before they become due and payable, together with the date such taxes will become due and payable. Itemize taxes, amounts and rates by lots. Where taxes, amounts or rates shown are not yet available for the current calendar year, those for the previous year should be shown with a state. ment that they are not for the current year and that the new taxes, amounts or rates may vary; and, if property has been rezoned or subdivided since the last taxing period, the estimated amount of changes for the current year should also be shown. Where the previous year's taxes were based other than on lots as presently subdivided, estimates should be shown and so identified.)

3. Assessments.

(The developer shall set forth in descriptive and concise terms a statement of all assessments which are made or may be made by State or local authorities or by a property owners' association or similar organization, The statement shall include any dues or fees paid in the last year or payable to a property owner's association. Itemize assessments, dues, fees, amounts and rates. State the authority under which the assessments, dues, and fees are imposed.)

WARNING: This subdivision is not registered with the Office of Interstate Land Sales Reg. istration nor has that Office passed upon the accuracy or adequacy of this statement, nor does this statement serve as an endorsement or recommendation by that Office of the above offering.

The undersigned by his signature hereby acknowledges that he has received a Statement of Reservations, Restrictions, Taxes, and Assessments, on (identify subdivision and location) from (name of developer) located at (address) and that he has made a

(Title) (If the affirmation is made by an agent of the developer of the subdivision, submit written authorization to act as agent.) 8 1710.102 Statement of Reservations,

Restrictions, Taxes, and Assess.

ments-format and instructions. A statement of reservations, restrictions, taxes, and assessments shall be prepared by the developer in accordance with the following format, instructions, and supporting documentation: STATEMENT OF RESERVATIONS, RESTRICTIONS,

Employer's IRS Number....


Name of developer---

« PreviousContinue »