Current through Register Vol. 56, No. 24, December 18, 2024
(a) Any person
who believes that an offering may be exempt from the provisions of the Act, or
who is contemplating marketing property in New Jersey which he or she believes
may be exempt, may apply to the Commission for a letter of exemption. Such
application shall be in written affidavit form and shall list the reasons why
the offering or proposed offering may be exempt from the Act. Such an
application for exemption shall be accompanied by a non-refundable fee of $
100.00.
1. In the event the Commission shall
determine that the offering is exempt from the Act, it shall issue a letter of
exemption setting forth the facts upon which the determination is
based.
2. In the event the
Commission shall determine that the offering is not exempt from the provisions
of the Act, it shall deny the request for exemption in writing, setting forth
therein the facts upon which the determination is based, and shall send such
writing to the applicant via certified mail, return receipt
requested.
3. The Commission shall
issue a determination as to whether an offering is or is not exempt within 30
days of its receipt of a complete request for exemption, with the appropriate
fee.
4. Any person who is aggrieved
by such a determination is entitled to a hearing, in accordance with the
Administrative Procedure Act,
N.J.S.A. 52:14B-1 et seq., and the Uniform
Administrative Procedure Rules, N.J.A.C. 1:1, on the determination, provided
said hearing is requested in writing no later than 30 days from the date of the
applicant's receipt of notice of such determination.
(b) If the nature of the proposed offering
indicates that the applicant would be subject to the registration requirements
of the Act, the applicant may apply to the Commission for a limited exemption.
If the Commission determines that enforcement of the entire Act and all of
these rules is not necessary in the public interest or for the protection of
purchasers due to the small amounts involved or the limited character of the
offering, it shall issue a limited exemption from registration to the
applicant.
1. A limited exemption may be
granted by reason of the limited character of the offering where the nature of
the property, or of the prospective purchasers to whom the timeshare interest
shall be offered, is such that it is likely prospective purchasers shall have
expert advice concerning the purchase independent of that supplied by the
applicant or his agents. An application for a limited exemption for this reason
shall include a copy of any prospectus, offering statement or other such
solicitation. A limited exemption granted for this reason shall be confined to
the group of offerees specified in the application.
2. An application for a limited exemption
shall specify the particular timeshare interests for which exemption is sought.
Any limited exemption granted shall be confined to those timeshare interests so
specified.
3. An application for a
limited exemption shall include a narrative description that clearly describes
the nature of the offering and the factual basis and reasons why the limited
exemption should be granted.
4. Any
limited exemption granted shall remain in effect for a period of two years from
the date of issuance indicated in the letter of exemption, unless revoked as
described below.
5. Any limited
exemption granted shall permit the recipient to offer the timeshare interests
covered by the limited exemption to New Jersey residents without obtaining an
order of registration. A limited exemption shall not deprive the Commission of
jurisdiction to enforce any other provision of the Act or this subchapter, or
to revoke the limited exemption after notice and opportunity to be
heard.
6. A $ 300.00 non-refundable
fee shall be tendered with any application for a limited exemption.
7. All applications for a limited exemption
shall comply with the following minimum requirements.
i. The filing of a limited exemption
application affidavit-questionnaire;
ii. The filing of proof of title specifying
the units or interests to be exempted;
iii. The filing of satisfactory proof of
surety and/or financial assurances for any promised improvements or
amenities;
iv. The advertisement
standards and procedures established by this Act; and
v. The filing of any other documents that the
Commission shall deem necessary.
8. No limited exemption granted hereunder
shall be effective until a letter of limited exemption is issued by the
Commission to the applicant for the exemption.
9. Any material change in the information
reflected on the application for a limited exemption or on any documentation
submitted in support of such application, shall immediately void any exemption
issued based upon such application.
(c) Any offering under this subsection may
only be made to those persons who are current bona fide owners of an interest
in a timeshare plan currently registered under the Act or previously registered
under the Act, or under
N.J.S.A. 45:15-16.27 et seq. or the
Planned Real Estate Development Full Disclosure Act,
N.J.S.A. 45:22A-21 et seq., by the same
developer making the offer. A developer of a timeshare plan that either is or
was so registered may offer and dispose of an interest in another timeshare
plan created by that developer that is located outside of this State and not
registered under the Act to a person in this State who is a current owner of an
interest in the currently or previously registered timeshare plan provided
that:
1. The developer files a notice with
the Commission identifying the timeshare plan that it intends to
offer;
2. The developer certifies
that all purchasers shall be provided with all disclosure documentation
required by law to be provided in the jurisdiction in which the timeshare plan
is located;
3. The developer
certifies that New Jersey purchasers shall be provided with a right to rescind
their purchase within seven days after the purchase contract is signed and all
documents required under this Act and local and municipal law are delivered,
whichever is later. If local or municipal law grants a longer rescission
period, then the longer period would apply;
4. The developer submits a fee of $ 300.00
per notice filed in accordance with (c)1 above; and
5. If the offer is made to owners of
interests in a previously registered timeshare plan, the registration of that
plan was terminated in good standing as provided in N.J.S.A. 45:15-16.6 0c,
45:15-16.4 0c or 45:22A-31, as applicable.
