(a)General.
(1) The of contained in multiple of fewer than 100 each, offered pursuant to a single common promotional plan, is exempt from the registration requirements.
(2) For purposes of this exemption, the of in an individual that exceeds 99 is not exempt from registration. Likewise, the of in a containing fewer than 100 , where the developer either owns contiguous land or holds an option or other evidence of intent to acquire contiguous land which, when taken cumulatively, would or could result in one of 100 or more , is not exempt from registration. Furthermore, the of that are within a subdivision established by a separate developer is not exempt from registration by this provision.
(b)Eligibility requirements. The of each must meet the following requirements to be eligible for this exemption.
(1) The is sold “as is” with all advertised improvements and amenities completed and in the condition advertised.
(2) The is in conformance with all local codes and standards.
(3) The is accessible, both legally and physically. For which are advertised or otherwise represented as “residential,” either primary or secondary, with any inference that a permanent or temporary dwelling unit of any description (excluding collapsible tents) can be built or installed, physical access must be available by automobile, pick-up truck or equivalent “on-road” vehicle.
(4) At the time of closing, a title insurance binder or title opinion reflecting the condition of title must be issued to the purchaser showing that, subject only to exceptions approved in writing by the purchaser at the time of closing, marketable title is vested in the seller.
(5) Each contract or agreement and any promissory notes:
(i) Contain the non-waivable provision found in section II of the appendix to this part: Language Notifying Buyer of Option to Cancel Contract in bold face type (which must be distinguished from the type used for the rest of the document) on the face or signature page above all signatures. If the purchaser is entitled to a longer revocation period by operation of or local law, that period becomes the Federal revocation period and the contract must reflect the requirement of the longer period rather than the seven days. The revocation provisions may not be limited or qualified in the contract or other document by requiring a specific type of notice or by requiring that notice be given at a specified place.
(ii) Obligate the developer to deliver, within 180 days, a warranty deed (or its equivalent under local law) for the which at the time of delivery is free from any monetary liens or encumbrances.
(6) The purchaser or purchaser's spouse makes a personal on-the-lot inspection of the to be purchased before signing a contract.
(7) The purchaser's payments are deposited in an escrow independent of the developer until a deed is delivered.
(8) Prior to the purchaser signing a contract or agreement of , the developer discloses in a written Information Statement all liens, reservations, taxes, assessments, easements and restrictions applicable to the purchased (see paragraph (b)(11) of this section).
(9) Prior to the purchaser signing a contract or agreement of , the developer discloses in a written Information Statement the name, address and telephone number of the local governmental or agencies from which information on permits or other requirements for water, sewer and electrical installations can be obtained. This Statement will also contain the name, address and telephone number of the suppliers which would or could provide the foregoing services.
(10) The must comply with the anti-fraud provisions of 12 CFR 1010.4(b) and (c) and the practices and standards in §§ 1011.10 through 1011.28.
(11) A written Information Statement must be delivered to, and acknowledged by, each purchaser prior to his or her signing a contract or agreement of , and must contain the information shown in the format below. The Statement must be typed or printed in at least 10 point font. A copy of the acknowledgement will be maintained by the developer for three years and will be made available to upon . If the Statement is not delivered as required, the contract or agreement of may be revoked and a full refund paid, at the option of the purchaser, within two years of the signing date and the contract or agreement of will clearly provide this right. A sample format for the Statement is provided in section III of the appendix to this part: Sample Information Statement and Sample Receipt.
(c)Request for Multiple Site Subdivision Exemption.
(1) The developer must file a for the Multiple Subdivision Exemption. The must be accompanied by a filing fee of $500 (prepared in accordance with § 1010.35(a)) and a sample Information Statement, substantially in the form set forth in section IV of the appendix to this part: for Multiple Subdivision Exemption.
(2) This exemption will become effective upon issuance of an Exemption Order by the .
(d)Annual Report.
(1) By January 31 of each year the developer will send a report to the listing each and its location available for a pursuant to the exemption during the preceding year and indicate the number of made in each . The report will describe any changes in the information provided in the for the Multiple Subdivision Exemption or contain a statement that there are no changes.
(2) The must be accompanied by a filing fee of $100.
(3) The must be signed and dated by the developer, attesting to its completeness and accuracy.
(4) Failure to submit the within ten days after the receipt of notice from the will automatically terminate eligibility for the exemption as of the Report due date.
(e)Termination. If, subsequent to the issuance of an Exemption Order, the has reasonable grounds to believe that exemption from the registration requirements in the particular case is not in the public interest, the may, after issuing a notice and giving the an opportunity to a hearing within fifteen days of receipt of the notice, terminate the exemption order. The basis for issuing a notice may be apparent omissions or misrepresentations in the documents submitted to the , the conduct of the developer or agent, such as unlawful conduct or insolvency, or adverse information about the real estate that should be disclosed to purchasers. Proceedings will be governed by § 1012.238.