Current through Register Vol. 56, No. 24, December 18, 2024
(a) No
registrant may dispose of any lot, parcel, unit or interest in a registered
subdivision unless said registrant delivers to the purchaser a current New
Jersey Public Offering Statement or approved equivalent, and affords the
purchaser a reasonable opportunity to read the same before the purchaser signs
the contract or purchase agreement.
1. In all
cases where a New Jersey purchaser has not had contact with an authorized New
Jersey broker, registrants shall maintain the signed and dated receipt for the
New Jersey Public Offering statement and a copy of the contract which the New
Jersey purchaser signed for a period of seven years.
(b) The Public Offering Statement shall
disclose fully and accurately the characteristics of the subdivision and the
lots, parcels, units or interests offered and shall make known to prospective
purchasers all unusual and material circumstances and features affecting the
subdivision. The Public Offering Statement shall be in clear and concise
language and combine simplicity and accuracy in order to fully advise
purchasers of their rights, privileges, obligations and restrictions.
1. The Public Offering Statement shall be in
a form designated by the Commission. No change in form may be made without the
consent of the Commission.
(e) The Public Offering
Statement shall contain the following information:
1. The name and address of the subdivision
being offered, the name and principal address of the applicant and the name and
address of the New Jersey broker of record;
2. A narrative description of the interest to
be offered including; but not limited to; the rights and obligations of
purchasers in their lots, parcels, units or interests and in the common
elements;
3. A narrative
description of the subdivision including, but not limited to, specific
designation of the total number of lots, parcels, units or interests contained
in the offering, the total number of lots, parcels, units or interests which
will or may be constructed in the entire project, the present and proposed
access to the development and the promised completion date of the present
offering for sale and the estimated completion date of the entire
development;
4. Relevant community
information including, but not limited to, the existence and location of
hospitals, health and recreational facilities, schools, fire and police
protection, places of worship, streets, water supplies, levees, drainage
control systems, irrigation systems, customary utilities, etc.;
5. A statement of the nature, type and
capacity of improvements to be installed by the developer and the proposed
dates of completion for sections offered for sale and estimated dates of
completion for sections not yet offered for sale. The developer may indicate
that the estimated dates of completion of improvements in sections not yet
offered for sale are subject to market conditions and other variables, or
similar qualifying language. Also, a statement of any approvals not yet
obtained, the acquisition of which is a precondition to the completion of such
improvements, and whether the identified improvements will be dedicated to
public use;
6. A statement of the
proposed method of operation and management of the common elements and
facilities, and of all fixed, estimated or proposed fees, assessments, and
reserves for future replacement and repair of common elements. If there are no
provisions for reserves, a statement indicating same shall be included. If the
proposed offering is a condominium or other interest in real estate that is
subject to the authority of or to assessments by a homeowners association, or
involves any common ownership interest, in addition to the amount set aside as
reserves for the replacement or repair of the common elements and facilities,
the risk to purchasers if the applicant fails to sell out shall also be stated.
A statement indicating whether the applicant is subsidizing the maintenance fee
or plans to subsidize the maintenance fee during sales prior to transfer of
control to any association, and if so, the amount of the subsidy and the
probable effect of the cessation of the payment of the subsidy upon the
maintenance fee payable by each owner shall also be included;
7. A description of any management or service
contract, lease or other contract or agreement affecting the use, maintenance
or access from and to any and all of the common elements or community
facilities, together with a statement as to the effect of each upon the
purchaser;
8. A statement of the
relationship, if any, between the applicant and any management or servicing
agent or firm;
9. A statement
explaining any restrictions on occupancy, on the right of alienation and on the
right of alteration of the lot, parcel, unit or interest, and on the use of any
common facilities or amenities;
10.
The significant terms of any encumbrances, easements, liens and restrictions
including, but not limited to, zoning regulations affecting such lands and each
lot, parcel, unit or interest, as well as the uses on and the zoning
classification of adjoining lands at the time of registration, consolidation or
the last filed annual report;
11. A
statement as to whether the property or any portion thereof is regularly or
periodically subject to natural forces that would tend to adversely affect the
use or enjoyment of the property and whether the property or any portion
thereof is located in a Federally designated flood hazard area;
12. A statement as to whether the property or
any portion thereof is subject to man-made forces that would tend to adversely
affect the use or enjoyment of the property such as, but not limited to, the
property's proximity to airports or flight paths, railroads, noisy or polluting
industrial use, landfills, dumps, nuclear or toxic waste facilities or other
similar forces;
13. A statement of
all current or estimated taxes;
14.
A statement of all existing or proposed special taxes and proposed assessments
or assessments of record and identifying who shall be responsible for payment
thereof;
15. A statement of all of
the estimated title closing or settlement costs to be paid by the purchaser,
including, but not limited to, all costs that are charged by the applicant and
its agents and any person or entity controlled by the applicant;
16. A statement explaining the warranty or
guarantee given by the applicant, if any, and the rights and remedies of the
purchaser;
17. A statement by the
applicant confirming that all monies paid by New Jersey residents to the
applicant or his agents prior to closing will be held in escrow or in trust or
guaranteed by some other means acceptable to the Commission, and which shall
include all of the information required to be provided in applications for
registration by
N.J.A.C. 11:5-9.4(a)3.
18. A statement printed in 10-point boldface
type or larger, conspicuously located, which states that the purchaser has the
right to cancel any contract or agreement for the purchase of any lot, parcel,
unit or interest in the development, without cause, by sending or delivering
written notice of cancellation to the developer or his agent by midnight of the
seventh calendar day following the day on which such contract or agreement was
executed and that all monies paid will be promptly refunded, and further
stating that the purchaser should read the Public Offering Statement in its
entirety before signing any contracts or paying any monies;
19. A statement indicating that, regardless
of whether the registrant offers or recommends financing the purchase of an
interest in the subdivision through a particular lender or lenders, alternate
sources of financing are available;
20. Where applicable, a statement explaining
the nature, type and amount of hazard and liability insurance supplied or to be
supplied by the applicant or association and what the insurance covers and an
explanation of the nature and type of hazard and liability insurance available
to the owner, and the necessity of flood or hazard insurance; and
21. Any additional information required by
the Commission to assure full and fair disclosure to prospective
purchasers.
(h) The Public Offering Statement shall not
be used for any promotional purposes before registration of the project, and
thereafter only if used in its entirety.
1.
No Public Offering Statement shall indicate, and no person shall represent or
imply, that the Commission approves the merits of, or recommends the purchase
of, an interest in the properties described in the offering.
