Oklahoma Administrative Code › Title 660 - Department of Securities › Chapter 20 - Oklahoma Subdivided Land Sales Code › Subchapter 3 - Registration of Subdivided Land › Section 660:20-3-3 - Public offering statement

Current through Vol. 41, No. 20, July 1, 2024
(a)
Receipt for public offering statement.
The subdivider shall use a
				Public Offering Statement as provided and required in Section 626.A of the Land
				Sales Act and prepared in the manner instructed by Form LRF-625.A, adopted by
				the Administrator as the "Public Offering Statement-Instruction Guide." The
				subdivider shall obtain and retain a receipt as provided and required therein.
				The receipt may be in such form as the subdivider chooses, but it shall not
				contain or constitute a release of any kind and shall cover and pertain only to
				the receipt of a copy of the Public Offering Statement by the purchaser. Also,
				the receipt shall state and disclose that the Oklahoma Public Offering
				Statement includes and consists of a Summary Disclosure Statement, a Property
				Report as defined hereinafter, and, if applicable, Oklahoma Supplement to the
				Property Report; and the receipt shall acknowledge that the purchaser received
				a copy of each of the documents and instruments comprising the Oklahoma Public
				Offering Statement. The receipt should also state the name of the person from
				whom the Oklahoma Public Offering Statement was received by the purchaser, the
				address where it was received and the date when it was received. There also
				should be a place for the purchaser to sign and a place separately provided for
				the purchaser to write in the date he signed the receipt. The failure to obtain
				and retain such a fully completed receipt in compliance with the requirements
				of Section 626.A of the Land Sales Act shall give rise to a presumption on the
				part of the Administrator that a Public Offering Statement was not delivered
				and provided to a purchaser according to law.
(b)
Federal Property Report.
In
				cases where a full registration of the subdivided land is filed with the OILSR
				for use in Oklahoma, the federal Property Report used in connection with the
				OILSR filing shall be submitted accompanied by a Summary Disclosure Statement
				and, together, the two documents shall be used as the Oklahoma Public Offering
				Statement.
(c)
Summary
				Disclosure Statement.
The Summary Disclosure Statement required by
				Section 626.B of the Land Sales Act should be prepared in a manner consistent
				with this Section and as instructed by FORM LRF-626.B, adopted by the
				Administrator as the "Summary Disclosure Statement Guide." The Summary
				Disclosure Statement should be on 8 1/2" × 11," lettersize, white paper
				and the smallest lettering thereon should be no smaller than uppercase,
				"capital," standard, elite typewriter size type. The Summary Disclosure
				Statement may be typewritten, printed, mimeographed or otherwise produced, but
				it should be legible and should conform to the minimum standards set out
				herein. The Summary Disclosure Statement should be no more than four (4) pages
				long. It may be made by using both the front and back of two (2) sheets, which
				shall be counted as four (4) pages. The Summary Disclosure Statement should
				contain and set out in brief, succinct, and concise language, using plain
				English and emphasizing the most negative aspects and greatest risk factors to
				the purchaser, a summary of the information required in Section 626.B of the
				Land Sales Act, except that no financial statements of the subdivider shall be
				required in the Summary Disclosure Statement. In addition to the other
				information required to be contained in the Summary Disclosure Statement, it
				shall contain the following additional two items:
(1) a statement of the kind of title the
				purchaser will have upon completion of payment for any of the subdivided land
				and a description of what happens if the purchaser defaults on any payments and
				all forfeitures which may occur; and
(2) a schedule, in tabular, columnar form,
				showing the date on which the subdivided land was acquired by the subdivider,
				or the date on which each parcel of the subdivided lands was acquired if not
				all acquired at the same time and the number of acres in each parcel; a column
				showing the amounts paid for each parcel of the subdivided land; a column
				showing the cost of all improvements made by the subdivider on each parcel of
				the subdivided land; a column showing the total historical cost basis, adjusted
				for any depreciation of improvements, of each parcel of the subdivided land;
				and a column showing the proposed total sales price of all lots in each parcel
				of the subdivided lands. Every item in the Summary Disclosure Statement should
				be referenced to the part, section and page number, when applicable, of the
				Property Report, or main body of the Public Offering Statement, wherein
				elaboration, explanation and additional information regarding that item can be
				found. The questions which should be set out and answered in the Summary
				Disclosure Statement are as follows:
(A)
If I have any questions or there is trouble where do I find the seller
				and his representatives?
Here include the name, principal address and
				telephone number of the subdivider, his offices and agents in this
				state.
(B)
What does this
				land look like and how large will the development be?
Here include a
				general description of the subdivided lands including a statement of the total
				number of lots to be offered.
(C)
If a purchaser decides later to sell his lot, what kind of help can he
				get selling it and what kind of local property market can he expect?
Here include the assistance, if any, that the subdivider, his agents or
				affiliates will provide to the purchaser in the resale of the property and the
				extent to which the subdivider, his agents or affiliates will be in competition
				in the event of resale.
(D)
What kind of rights or title to the land do I get immediately and what
				kind of title do I have after the lot is paid for?
Here include material
				terms of any encumbrances, easements, mortgages and liens. Also include the
				plans and efforts to remove such liens, encumbrances or mortgages and the
				results of the success or failure thereof.
(E)
What kind of taxes and assessments
				will I have to pay?
Here include the material terms of all existing
				taxes and existing or proposed special taxes or assessments, including required
				membership fees or dues, which affect the subdivided lands.
(F)
How can I use this property?
Here include material zoning restrictions, restrictive covenants and other
				regulations affecting the use of the land. Also include the intended use for
				which the land is sold and material physical limitations and restrictions of
				the land relative to the intended use.
(G)
What kind of utilities and other
				improvements now exist on the land and what kind are promised for the
				future?
Here include information about existing or proposed improvements
				including, but not limited to, streets, water supply, levees, drainage control
				systems, irrigation systems, sewage disposal systems and customary utilities
				and the estimated cost, date of completion and responsibility for construction
				and maintenance of existing and proposed improvements which are referred to in
				connection with the offering or disposition of any lot in the subdivided
				lands.
(H)
What is the soil
				and climate like?
Here include topographic and climatic characteristics
				of the subdivided lands and adjacent area.
(I)
What hospitals, churches, fire
				stations, police protection and other community services are available?
Here include the existing provisions for access of the subdivision to community
				fire protection, the location of primary and secondary schools, the proximity
				to the municipalities and the population thereof, the improvements installed or
				to be installed, including off-site and on-site community and recreational
				facilities, by whom they were or are to be installed, maintained or paid for,
				and an estimate of completion thereof.
(J)
What happens if I fail to make any
				payments, or if I make my payments but the seller fails to pay on his mortgage?
				Can any of my rights in the land be forfeited?
Here include the kind of
				title the purchaser will have upon completion of payment for any of the
				subdivided land and what happens if the purchaser defaults on any payments and
				all forfeitures which may occur. Also describe any and all "take-out"
				provisions for all mortgages or state that there are none and state the
				possible consequences.
(K)
What kind of value did this land have prior of the present development
				and how much is being spent to improve it?
Here provide a schedule, in
				tabular, columnar form, showing the date on which the subdivided lands were
				acquired by the subdivider, or the date on which each parcel of the subdivided
				land was acquired if all not acquired at the same time and the number of acres
				in each parcel; a column showing the amounts paid for each parcel of the
				subdivided land; a column showing the costs of all improvements made by the
				subdivider on each parcel of the subdivided land; a column showing the total
				historical cost basis, adjusted for any depreciation of improvements, of each
				parcel of the subdivided land; and a column showing the proposed total sales
				price of all lots in each parcel of subdivided land.