Secondary Registration under the New Jersey Real Estate Sales Full Disclosure Act, Sexy真人SA 45:15-16.27, et. seq.
On January 10, 2008 Gov. Corzine signed into law Senate Bill #S-2879 (PDF), which amended certain provisions of the , Sexy真人SA 45:15-16.27 et. seq.
These changes:
1. Amended Sexy真人SA 45:15-16.32a6 to extend the 100 lot and unit exemption to “condominiums, cooperatives, retirement communities, and entities comprised of or acting on behalf of the owners of other units in the subdivision, including but not limited to entities designated as homeowner associations”.
2. and Created a New Section 45:15-16.32d that provides for a new filing procedure (Secondary Registration PDF) for those regulated offerings on which there is a completed residential unit, or there is a contract to construct and deliver a completed residential unit (including condominiums) by the subdivider or developer, or an affiliated or related entity within 2 years from the date of the offer or disposition.
This is not a complete exemption from jurisdiction, but rather a procedure to facilitate compliance for these types of offerings. For example, the Commission will look to the escrow standards of Sexy真人AC 11:5-9.4a3 for compliance with the escrow requirements under the Secondary Registration provisions.
A Secondary Registration is not self actuating. Prior to engaging in most marketing activities in this State, a Secondary Registration filing must be submitted, and a Notice of Completion must be issued.
However, the new amendment does permit a qualified Secondary Registration Subdivider to engage in some limited “pre registration” marketing by allowing them to respond to inquires initiated by New Jersey residents in response to the developer’s multi state (i.e. national or regional marketing that is not specifically targeted to New Jersey consumers) marketing campaigns.
Developers who engage in pre registration marketing activities, but are later found to not qualify as Secondary Registration Subdividers, will be subject to sanctions, including but not limited to fines, rescission of contracts, injunctive relief and other sanctions permitted under the law.
As a guideline to assist you in determining an applicant’s status as a Secondary Registration Subdivider, please look to the standards issued by HUD regarding the qualifications for the Improved Lot (2 year building) exemption under the Federal Act.
Offerings where registration is required with CFPB under the Federal Interstate Land Sales Act are not eligible for a secondary registration. In addition, since the regulation of timesharing has been transferred to the New Jersey Real Estate Timeshare Act, Sexy真人SA 45:15-16.50 et. seq., timeshare offerings are not eligible for a Secondary Registration filing.
If you have any questions, please contact the Bureau of Subdivided Land Sales Control at (609) 292-7272. |
