New Jersey Administrative Code › Title 5 - COMMUNITY AFFAIRS › Chapter 26 - PLANNED REAL ESTATE DEVELOPMENT FULL DISCLOSURE ACT REGULATIONS › Subchapter 4 - PUBLIC OFFERING STATEMENT › Section 5:26-4.2 - Contents of public offering statement

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The public offering
				statement shall contain the following information:
1. The name and principal address of the
				developer;
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 development including but not limited to the total number of lots, parcels,
				units, or interests in the offering, the total number of lots, parcels, units, or
				interests to be constructed in the entire project, the present and proposed access
				to the development and the anticipated completion date of the present offering and
				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 estimated date of completion
				and whether they will be dedicated to the public use. In the event the developer is
				to construct common recreation or community facilities a statement, together with
				any plans, of the nature, size, capacity and amenities of such recreational and
				community facilities such as, but not limited to, air conditioning, furniture,
				supplies, carpet or drapes, their location within the development and whether or not
				the use thereof will be limited to owners of the lots, parcels, units or interests,
				or whether the common recreational or community facilities will be available for use
				by the general public;
6. A statement of
				the proposed method of operation and management of the common elements and
				facilities;
7. The following documents:
i. A statement as to who will control the
				operation and management of the common elements and facilities and when control will
				be vested in any association, trust or other entity;
ii. Copies of any actual or proposed management or
				service contract, lease or agreement affecting the use, maintenance or access of or
				to any or all of the common elements or facilities;
8. A copy of the proposed budget for the operation
				and maintenance of the common elements and facilities based on full occupancy,
				together with the proposed annual assessment and the monthly charges to be assessed
				to each type of unit. The budget shall specifically state the amount set aside as
				reserves for the replacement of the common elements and facilities and shall be
				accompanied by a letter of adequacy certified by an independent public accountant or
				other independent expert and by a letter of adequacy of the hazard and liability
				insurance coverage certified by an independent insurance agent or broker;
9. The following documents:
i. A description of any management or service
				contract, lease or other contract or agreement affecting the use, maintenance or
				access of or to any or all of the common elements or community facilities together
				with a statement as to the effect of each upon the purchaser;
ii. Copies of any management or services contract,
				lease or agreement affecting the use, maintenance or access of or to any or all of
				the common elements or facilities;
10. A statement of the relationship, if any,
				between the developer and the management or servicing agent or firm;
11. A copy of the master deed, declaration of
				covenants and restrictions and/or any other documents of creation that have been or
				will be recorded, and the date and book and page thereof;
12. A statement explaining any restrictions on
				occupancy, the right of alienation and the right of alteration of the lot, parcel,
				unit or interest;
13. Copies of the
				instruments that will be delivered to purchasers to evidence their interest in the
				development;
14. A statement that all
				monies paid to the developer prior to closing will be held in a separate trust
				account and the name and location of the institution where the trust account is
				maintained and the name and address of any trust or escrow agent, until closing or
				termination of the contract or until a bond or other guarantee acceptable to the
				Agency is provided. In no event shall the escrow be released before the expiration
				of the seven-day rescission period;
15.
				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 use and zoning of adjoining
				lands;
16. 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;
17. 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 or other similar forces. This statement shall also
				include the text of the notice required to be given to new home purchasers pursuant
				to 46:3C-8 and shall indicate that the
				rights of the purchaser set forth in that notice are in addition to, and not in lieu
				of, the rights established by the Planned Real Estate Development Full Disclosure
				Act and these rules;
18. A statement of
				all existing taxes affecting any lot, parcel, unit or interest, as well as the
				estimated real estate tax on each lot, parcel, unit or interest, showing the value
				thereof and the tax ratio and tax rate for the last three years;
19. A statement of all existing or proposed
				special taxes or assessments of record and who shall be responsible for payment
				thereof;
20. A statement of the
				estimated title closing or settlement costs to be paid by the purchaser that are
				charged by the developer or the agent of the developer;
21. A statement explaining the warranty or
				guarantee given by the developer and the rights and remedies of the
				purchaser;
22. A statement, printed in
				10-point bold face type or larger, conspicuously located and simply stated, 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 a written notice of cancellation to the developer or the agent of the
				developer by midnight of the seventh calendar day following the day on which such
				contract or agreement is executed and that all monies paid will be promptly
				refunded; and
23. A statement explaining
				the nature, type and amount of hazard and liability insurance supplied or to be
				supplied by the developer or association and what the insurance covers, an
				explanation of the nature and type of hazard and liability insurance recommended to
				be carried by the owner and a statement of the availability and necessity of flood
				hazard insurance.