Current through Register Vol. 49, No. 13, September 23, 2024
Subpart 1.
Presumption; penalty.
The methods, acts, and practices contained herein or similar
thereto shall be presumed fraudulent, deceptive, misleading, or unfair and
inequitable if engaged in by the subdivider or an agent of the subdivider and
shall constitute grounds for denial, suspension, or revocation of the license
of the subdivider or agent.
Subp.
2.
Approvals and memberships.
It is presumed fraudulent, deceptive, misleading, or unfair
and inequitable to:
A. represent that
the subdivider, or agents, servants, employees, or others acting on behalf of
the subdivider, have sponsorship, approval, or certification they do not
have;
B. represent that land has
been inspected by the commissioner and/or received approval;
C. represent the necessity, desirability, or
the advantage of dealing with a subdivider, such as false or alleged connection
with or endorsement by the government, nationally known organization, or
membership in a professional association.
Subp. 3.
Availability of land and
utilities.
It is presumed fraudulent, deceptive, misleading, or unfair
and inequitable to:
A. represent the
availability of land without clearly and conspicuously disclosing in immediate
conjunction therewith any limitation on location, including location in
relationship to amenities, and quantity;
B. represent or give the impression that a
prospective purchaser has to act quickly to purchase specific or choice lots,
units, parcels, or interests in land because of purported scarcity of such land
or reasons similar thereto;
C.
represent a utility service as "available" or a similar representation, unless
such utility service is installed and ready for use, or use is assured under
financial arrangements made for installation and approved by the commissioner,
and such arrangements are disclosed.
Subp. 4.
Access to subdivisions.
It is presumed fraudulent, deceptive, misleading, or unfair
and inequitable to:
A. represent or
suggest that a subdivision is restricted to owners, purchasers, or their
families by means of guards or private roads or facilities unless it is
true;
B. represent that a
prospective purchaser must pay a refundable or nonrefundable temporary
membership fee in order to visit, tour, or inspect a subdivision for the
reasons that such is restricted to members only, when in fact such offer is
made systematically and on a regular basis to all persons solicited for
purchase.
Subp. 5.
Visits and free goods and services.
It is presumed fraudulent, deceptive, misleading, or unfair
and inequitable to:
A. fail to reveal
in an offer to induce a person to visit, inspect, or tour a subdivision all
terms, conditions, or prerequisites that must be met by any person;
B. offer or represent that goods or services
are "free" without clearly or conspicuously disclosing in immediate conjunction
with the offer or representation all terms, conditions, or prerequisites to the
receipt, retention, or use of the goods or services.
Subp. 6.
Price, value, and
credit.
It is presumed fraudulent, deceptive, misleading, or unfair
and inequitable to:
A. represent or
imply that a prospective purchaser has to act quickly to purchase land at a
savings by reason of an imminent price increase, unless the increase is valid
and a copy of the proposed new price schedule and the date of the price
increase is furnished to the prospective purchaser;
B. represent the price of land has been
discounted or reduced unless in fact the original price was the customary price
for a reasonable period of time;
C.
represent or suggest that the price of land is less when compared to other land
sold by competitors unless such other land has the same characteristics,
attributes, and qualities of the offered or advertised land and such prices are
not fictitious;
D. represent or
suggest that credit is readily available when in fact it is not;
E. represent or suggest that the terms of
such credit are liberal or lenient when in fact they are not.
Subp. 7.
Repurchases,
refunds, consideration for referrals.
It is presumed fraudulent, deceptive, misleading, or unfair
and inequitable to:
A. represent that
the subdivider will buy back, resell, list, or otherwise dispose of purchased
property unless the terms are set forth in the contract, purchase agreement, or
other similar instrument, and the commissioner has been furnished a copy of the
buyback or resale agreement;
B.
induce a person to buy land, execute a contract, agreement, option for
consideration, or other evidence of indebtedness for the purchase of land upon
the representation to the person that a refund will be made if not satisfied,
unless such representation is set forth in the contract, purchase agreement, or
other similar instruments.
Subp.
8.
Promotion schemes, documents.
It is presumed fraudulent, deceptive, misleading, or unfair
and inequitable to:
A. represent that
a subdivider, salesperson, agent, servant, employee, or other person acting on
behalf of a subdivider is conducting a survey, contest, poll, or other similar
inquiry, when such representation is a systematic marketing approach to sell
property;
B. represent to a person
that they have been specially selected;
C. obtain the execution of a contract or
similar instrument by representing that it is only a reservation, receipt,
temporary membership certificate, or other nonbinding agreement;
D. fail to clearly and conspicuously inform a
purchaser that a contract, promissory note, evidence of indebtedness, or other
similar instrument is assignable.
Subp. 9.
Contracts, agreements, deeds,
options, and dispositions.
It shall be presumed to be unfair for a person to use a
contract, agreement, deed, option, or other evidence of disposition of lands
under the act that contains provisions whereby a purchaser or prospective
purchaser agrees, without knowing, intelligent, and voluntary consent
thereto:
A. to waive a right or
privilege afforded by the act; the Interstate Land Sales Full Disclosure Act
(82 Stat. 590; United States Code, title 15, sections 1701 et seq.); or the
Consumer Credit Protection Act commonly known as the Federal Truth-in-Lending
Act, and any rules or federal regulations promulgated thereunder, or any laws
governing the transaction;
B. to
assume all risk of loss to the property without title passing to the purchaser
or actual possession being in the purchaser;
C. to a subsequent sale of the optioned or
purchased property;
D. to waive as
against an assignee of the subdivider, a mortgagee, or subsequent holder a
claim or defense arising out of the transaction that the purchaser would have
against the subdivider;
E. to lose
possession of the property without notice of and a prior hearing in a court of
competent jurisdiction;
F. to waive
a right to redeem the property after default;
G. that an assignee, mortgagee, or subsequent
holder of the subdivider is not obligated to convey title as to the
purchaser.
Subp. 10.
Execution and alteration.
It is unfair for a subdivider, or agents, servants,
employees, or others acting on behalf of the subdivider:
A. to offer to or induce a purchaser to
execute a document, paper, or other instrument without all spaces filled in or
inapplicable spaces clearly stricken;
B. to alter or deface a document, paper, or
other instrument without the consent of the parties thereto.
Subp. 11.
Rebates.
It is unfair for a person to use a method of rebate of
interest, or finance charge which requires or results in a purchaser paying a
greater amount of interest or finance charge upon prepayment than would have
been paid if the purchaser had financed for that shorter period up to the time
of prepayment.
Subp. 12.
Promises, revelations, and substitutions.
It is unfair for a subdivider, or agents, servants,
employees, or others acting on behalf of the subdivider:
A. to make a promise with no present intent
to perform it;
B. to fail to reveal
to a purchaser or prospective purchaser all terms, conditions, notices, and
amounts of any contract, agreement, option, deed, property report, evidence of
indebtedness, or other similar instrument; or
C. to substitute another lot, unit, parcel,
or interest in land for that purchased or optioned without the consent of the
purchaser.
Subp. 13.
Rights; privileges.
It is unfair for a subdivider to fail to afford to a
purchaser all rights, privileges, or advantages that are represented or implied
as being available to a purchaser as the result of the purchase.
Subp. 14.
Offers;
comparisons; bait and switch.
It is presumed fraudulent, deceptive, misleading, or unfair
and inequitable to:
A. represent the
necessity, desirability, or advantage to a prospective purchaser of dealing
with a subdivider such as representing a subdivider's alleged advantages of
size;
B. offer or represent to sell
or lease lots, units, parcels, or interests in land that in truth the
subdivider does not intend or desire to sell or lease;
C. engage in activities commonly referred to
as "bait and switch" activities;
D.
fail to clearly and conspicuously disclose the use, if any, to which
surrounding land has been put where the disclosure is material;
E. make false, misleading, or irrelevant
comparisons of land values; or
F.
engage in any other method, act, or practice that has or may have the tendency
to deceive.
Statutory Authority: MS s
83.38
