Section Jus 1308.03 - Non-binding Reservation Agreements(a) "Non-binding reservation agreement" means an agreement between the subdivider and a prospective purchaser which is in no way binding on the prospective purchaser and which can be canceled without penalty at the sole discretion of the prospective purchaser by written notice, hand delivered or sent by United States mail, return receipt requested, to the subdivider or to any agent of the subdivider at any time prior to the execution by all parties of a contract for the sale or lease of any lot, parcel, unit, or interest in a subdivision.(b) The bureau shall permit the use of non-binding reservation agreements under the following conditions:(1) Such agreement shall not contain any provision for waiver or any other provision in derogation of the rights of the prospective purchaser as contemplated by this paragraph, nor shall any such provision be a part of any ancillary agreement;(2) Offers made prior to registration or exemption from registration shall be permitted only to the extent that such offers are made by the subdivider solely in connection with efforts to obtain non-binding reservation agreements, provided however, that the subdivider shall first have notified the bureau in writing of its intention to conduct such offers;(3) Written notice to the bureau of the subdivider's intention to obtain non-binding reservation agreements shall be accompanied by a copy of the proposed form of the non-binding reservation agreement; and(4) Every non-binding reservation agreement shall:a. Be labeled as such in capital letters at the top of the agreement; andb. Include the following disclosures to the prospective purchaser:1. That the agreement is in no way binding on the prospective purchaser and may be canceled without penalty at the sole discretion of the prospective purchaser by written notice, hand delivered or sent by United States mail, return receipt requested, to the subdivider or to any agent of the subdivider at any time prior to the formation of the contract for the sale or lease of any lot, parcel, unit, or interest;2. That the subdivision is not yet registered by the New Hampshire attorney general's office, and until such registration is ordered, no binding contract for sale or lease of any lot, parcel, unit, or interest may be created;3. Any deposit made under the agreement shall be held in escrow and shall be returned by the subdivider no later than 10 days following receipt of cancellation of the agreement; and4. The name and address of the escrow agent.(c) For the purposes of (b)(4)b.3., above, the escrow agent shall be a person or entity unrelated to the declarant or any principal thereof and shall hold all escrowed funds within the state of New Hampshire.(d) The bureau shall not, as a matter of course, approve or disapprove the use or form of a non-binding reservation agreement. However, in addition to the exercise of any other statutory or common law authority, the bureau upon determination that any statutory requirement or rule has not been satisfied with respect to a non-binding reservation agreement, shall require the subdivider to amend the agreement to conform with the statutory requirement or rule.(e) Upon cancellation of a non-binding reservation agreement, any deposit made in connection with the agreement shall be returned with interest, unless the written agreement provides that the interest shall not be returned.(f) Unless the subdivider's right to cancel the agreement or to increase the price is expressly retained in the written reservation agreement, no subdivider shall cancel a non-binding reservation agreement, nor shall the purchase price be increased.(g) No subdivider shall state a price in a non-binding reservation agreement with intent to sell the lot, parcel, unit, or interest at a price other than the stated price.N.H. Admin. Code § Jus 1308.03
(See Revision Note at chapter heading for Jus 1300) #9782-A, eff 9-11-10
Amended by Volume XXXIX Number 46, Filed November 14, 2019, Proposed by # 12656, Effective 10/24/2019, Expires 10/24/2029.