Section 455.605 - Promotional land sales; approval(a) Any person who proposes to engage in real estate transactions of a promotional nature in this Commonwealth for a property located inside or outside of this Commonwealth, shall first register with the commission for its approval before so doing, and shall comply with such restrictions and conditions pertaining thereto as the commission may impose by rule or regulation. Registration shall not be required for property located within or outside of this Commonwealth which is subject to a statutory exemption under the Federal Interstate Land Sales Full Disclosure Act (Public Law 90-448, 82 Stat. 590, 15 U.S.C. § 1702 ).(b) As used in this section the term "promotional real estate" means an interest in property as defined in this act which is a part of a common promotional plan undertaken by a single developer or group of developers acting together to offer interests in real estate for sale or lease through advertising by mail, newspaper or periodical, by radio, television, telephone or other electronic means which is contiguous, known, designated or advertised as a common unit or by a common name: Provided, however, That the term shall not mean real estate interest involving less than 50 lots or shares, cemetery lots and land involving less than 25 acres.(c) A person may apply to the commission for registration of promotional land sales by filing a statement of record and meeting the requirements of this section. Each registration shall be renewed annually. In lieu of registration or renewal, the commission shall accept registrations, property reports or similar disclosure documents filed in other states or with the Federal Government: Provided, That the commission may suspend or revoke the registration when the Federal Government or a registering state suspends or revokes a regulation. The commission shall, by rule and regulation, cooperate with similar jurisdictions in other states to establish uniform filing procedures and forms, public offering statements and similar forms. The commission shall charge an application fee as determined by regulation to cover costs associated with processing applications for registrations and renewals.(d) Unless prior approval has been granted by the commission or the promotional plan is currently registered with the Department of Housing and Urban Development pursuant to the Federal Interstate Land Sales Full Disclosure Act or pursuant to State law, the statement of record shall contain the information and be accompanied by documents specified as follows: (1) The name and address of each person having an interest in the property to be covered by the statement of record and the extent of such interest, except that in the case of a corporation the statement shall list all officers and all holders of 10% or more of the subscribed or issued stock of the corporations.(2) A legal description of, and a statement of the total area included in the property and a statement of the topography thereof, together with a map showing the division proposed and the dimensions of the property to be covered by the statement of record and their relation to existing streets and roads.(3) A statement of the condition of the title to the land comprising the property including all encumbrances, mortgages, judgments, liens or unpaid taxes and deed restrictions and covenants applicable thereto.(4) A statement of the general terms and conditions, including the range of selling prices or rents at which it is proposed to dispense of the property.(5) A statement of the present condition of access to the property, the existence of any unusual conditions relating to safety which are known to the developer, completed improvements including, but not limited to, streets, sidewalks, sewage disposal facilities and other public utilities, the proximity in miles of the subdivision to nearby municipalities and the nature of any improvements to be installed by the developer and his estimated schedule for completion.(6) A statement of any encumbrance, a statement of the consequences for the purchaser of a failure by the person or persons bound to fulfill obligations under any instrument or instruments creating such encumbrance and the steps, if any, taken to protect the purchaser in such eventuality.(7) A copy of the articles of incorporation with all amendments thereto, if the developer is a corporation, copies of all instruments by which a deed of trust is created or declared, if the developer is a trust, copies of articles of partnership or association and all other papers pertaining to its organization if the developer is a partnership, unincorporated association, joint stock company or other form of organization and if the purported holder of legal title is a person other than the developer, copies of the above documents for such person.(8) Copies of the deed or other instrument establishing title to the property in the developer or other person and copies of any instrument creating a lien or encumbrance upon the title of the developer or other person or copies of the opinion or opinions of counsel in respect to the title to the subdivision in the developer or other person or copies of the title insurance policy guaranteeing such title.(9) Copies of all forms of conveyance to be used in selling or leasing lots to purchasers.(10) Copies of instruments creating easements or other restrictions.(11) Certified financial statements of the developer or an uncertified financial statement if a certified statement is not available as may be required by the commission.(12) Such other information and such other documents and certifications as the commission may require as being reasonably necessary or appropriate to assure that prospective purchasers have access to truthful and accurate information concerning the offering.(13) Consent to submit to the jurisdiction of the Commonwealth Court with respect to any action arising under this section.(e) If at any time subsequent to the date of filing of a statement of record with the commission, a change shall occur affecting any material facts required to be contained in the statement, the developer shall promptly file an amendment thereto.(f) If it appears to the commission that the statement of record or any amendment thereto, is on its face incomplete or inaccurate in any material respect, the commission shall so advise the developer within a reasonable time after the filing of the statement or amendment. Failure of the developer to provide the information requested by the commission within 90 days shall result in an automatic denial of an application or a suspension of registration.(g) If it appears to the commission that a statement of record includes any untrue statement of material facts or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading, the commission may reject such application. The commission shall make an investigation of all consumer complaints concerning real estate promotions in the absence of a reciprocal agreement to handle on-site inspections. Under no circumstances shall a member or an employee of the commission perform an on-site inspection. If the commission determines that a violation of this section has occurred, the commission may: (1) suspend or revoke any registration;(2) refer the complaint to the Consumer Protection Bureau of the Office of Attorney General; or(3) seek an injunction or temporary restraining order to prohibit the complained of activity in the Commonwealth Court.(h) Upon rejection of an application or amendment, the applicant may within 20 days after such notice request a hearing before the commission. Prior to, and in conjunction with such hearing, the commission, or its designee, shall have access to and may demand the production of any books and papers of, and may examine, the developer, any agents or any other person in respect of any matter relevant to the application. If the developer or any agents fail to cooperate or obstruct or refuse to permit the making of an investigation, such conduct shall be grounds for the denial of the application. 1980, Feb. 19, P.L. 15, No. 9, § 605, imd. effective. Amended 1984, March 29, P.L. 162, No. 32, § 13, effective in 90 days.