57-11-5. Registration, public offering statement, and receipt required for sale of
subdivided land -- Temporary permit -- Right of rescission.
Unless the subdivided lands or the transaction is exempt under Section 57-11-4, all of the
following apply:
(1) No person may offer or dispose of any interest in subdivided lands located in this state
nor offer or dispose in this state of any interest in subdivided lands located outside of this state
prior to the time the subdivided lands are registered in accordance with this chapter.
(2) Notwithstanding Subsection (1), the division may grant a temporary permit allowing
the developer to begin a sales program while the registration is in process. In order to obtain a
temporary permit the developer must:
(a) submit an application to the division for a temporary permit in the form required by
the division;
(b) submit a substantially complete application for registration to the division, including
all appropriate fees and exhibits required under Sections 57-11-6 and 57-11-7 in addition to a
temporary permit fee of $100;
(c) provide evidence acceptable to the division that all funds received by the developer or
marketing agent will be placed into an independent escrow with instructions that funds will not be
released until a final registration has been granted;
(d) give to each purchaser and potential purchaser a copy of the proposed property report
which the developer has submitted to the division with the original application; and
(e) give to each purchaser the opportunity to rescind the purchase in accordance with this
section. The purchaser must be granted an additional opportunity to rescind upon the issuance of
an approved registration if the division determines that there is a substantial difference in the
disclosures contained in the final property report and those given to the purchaser in the proposed
property report.
(3) Any contract or agreement of disposition for an interest in subdivided lands may be
rescinded by the purchaser without cause by midnight of the fifth calendar day after the execution
of the contract or agreement of disposition. This right of rescission may not be waived by
agreement. The contract or agreement of disposition shall state in boldface type on the signature
page above all signatures: YOU HAVE THE OPTION TO CANCEL YOUR CONTRACT OR
AGREEMENT OF DISPOSITION BY NOTICE TO THE SELLER UNTIL MIDNIGHT OF
THE FIFTH CALENDAR DAY FOLLOWING THE SIGNING OF THE CONTRACT OR
AGREEMENT. WRITTEN NOTICE OF CANCELLATION MUST BE PERSONALLY
DELIVERED OR SENT BY CERTIFIED MAIL, POSTMARKED BY MIDNIGHT OF THE
FIFTH CALENDAR DAY FOLLOWING THE SIGNING OF THE CONTRACT OR
AGREEMENT, TO THE SELLER AT: (Address of Seller).
(4) No person may dispose of any interest in subdivided lands without delivering to the
purchaser an effective, current public offering statement and obtaining a dated, signed receipt for
the public offering statement in a form to be approved by the division from each purchaser. The
subdivider shall retain each receipt for two years from the date of its execution. All receipts shall
be made available for inspection upon request by the division. Failure to comply with this
subsection shall not constitute a cause of action under Section 57-11-17 but shall be grounds for
appropriate action by the division under Sections 57-11-13 and 57-11-14.
Amended by Chapter 86, 2000 General Session
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Last revised: Wednesday, October 08, 2008