TITLE XXXI
TRADE AND COMMERCE
Chapter 356-A
LAND SALES FULL DISCLOSURE ACT
Section 356-A:1
356-A:1 Definitions. –
As used in this chapter the following words shall have the following meanings unless the context clearly requires otherwise:
I. "Dispose" or "disposition" refers to any sale, contract, assignment, or any other voluntary transfer of a legal or equitable interest in a lot, parcel, unit or interest in subdivided lands, except as security for a debt;
II. "Offer" means any inducement, solicitation, or attempt to encourage any person or persons to acquire any legal or equitable interest in a lot, parcel, unit or interest in subdivided lands, except as security for a debt;
III. "Person" means a natural person, corporation, partnership, association, trust, or other entity capable of holding title to real property, or any combination thereof;
IV. "Purchaser" means any person or persons who acquire by means of a voluntary transfer a legal or equitable interest in a lot, parcel, unit or interest in subdivided lands, except as security for a debt;
V. "Subdivider" means a person who is an owner of subdivided land or one who offers it for disposition. Any successor of the person referred to in this paragraph who comes to stand in the same relation to the subdivided lands as his predecessor did shall also come within this definition; provided, however, the term "subdivider" shall not include any homeowners association which is not controlled by a subdivider;
VI. "Subdivision" and "subdivided lands" mean any land in this or another state which is, or has been, or is proposed to be, divided for the purpose of disposition into lots, parcels, units or interests and also include any land whether contiguous or not if said lots, parcels, units or interests are offered as a part of a common promotional plan of advertising and sale; provided, however, that the terms "subdivision" and "subdivided lands" shall not include condominiums;
VII. "Broker" means a real estate broker duly licensed in this state pursuant to RSA 331-A;
VIII. [Repealed.]
IX. "Agent" means any person who represents, or acts for or on behalf of, a subdivider in selling or leasing, or offering to sell or lease, any lot, parcel, unit or interest in a subdivision, but shall not include an attorney-at-law whose representation of another person consists solely of rendering legal services;
X. "Blanket encumbrance" means a trust, deed, mortgage, judgment, or any other lien or encumbrance, including but not limited to an option or contract to sell or a trust agreement, affecting a subdivision or affecting more than one lot, parcel, unit or interest offered within a subdivision, except that such term shall not include any lien or other encumbrance arising as the result:
(a) Of the imposition of any tax assessment by any public authority;
(b) Of easements; or
(c) Of conditions, covenants, and restrictions which affect the subdivisions;
XI. "Publicly held corporation" means a corporation
(a) Having more than 50 stockholders of record; or
(b) Which is actively traded on one of the major stock exchanges;
XII. "Subsidiary corporation" means any corporation, the stock of which is more than 50 percent owned by another corporation or corporations;
XIII. "Closely held corporation" means any corporation which is not a publicly held corporation as defined in paragraph XI nor a subsidiary corporation as defined in paragraph XII;
XIV. "Hearing" means a hearing open to the public;
XV. "Interest" includes, without limitation, any fee simple interest, leasehold interest for a term of more than 5 years, life estate and time sharing interest;
XVI. "Time sharing interest" means the exclusive right to occupy one or more lots, parcels, or units, including campground sites, for less than 60 days each year for a period of more than 5 years from the date of execution of an instrument for the disposition of such right, regardless of whether such right is accompanied by a fee simple interest or a leasehold, or neither of them, in said lots, parcels or units. Time sharing interest shall include "interval ownership interest," "vacation license," or any other similar term;
XVII. "Days" means calendar days, unless modified by the word "business", in which case said term shall include all days except Saturdays, Sundays and legal holidays in the state of New Hampshire.
Source. 1970, 55:1. 1977, 469:1-4. 1979, 171:1. 1985, 173:1; 300:29, IV. 1992, 278:4, eff. July 17, 1992.
Section 356-A:2
356-A:2 Administration. –
There is hereby added to the department of justice, consumer protection and antitrust bureau, such assistant attorneys general, investigators, clerical, stenographic and other staff as the attorney general may appoint within the appropriation made therefor. Said staff shall enforce and administer the provisions of this chapter, subject to the supervision of the attorney general, and perform such other duties as the attorney general may from time to time assign.
Source. 1970, 55:1. 1979, 171:1. 1985, 300:7, I(a).
Section 356-A:3
356-A:3 Exemptions. –
I. Unless the method of disposition is adopted for the purpose of evasion of this chapter, the provisions of this chapter shall not apply to any offer or disposition of:
(a) Subdivided lands if not more than 15 lots, parcels, units or interests are included in such subdivided lands; provided, however, this exemption shall not apply to subdivided lands involving time share interests;
(b) Subdivided lands pursuant to court order;
(c) Subdivided lands by any government or government agency;
(d) Subdivided lands if all lots, parcels, units and interests are restricted to commercial, industrial or other non-residential use;
(e) Cemetery lots;
(f) Securities or units of interest issued by a real estate investment trust regulated under any state or federal statute;
(g) Securities registered with the insurance commissioner of this state; and
(h) Any interest in oil, gas or other minerals or any royalty interest therein, if the offer or disposition of such interests are regulated as securities by any federal agency or by the insurance commissioner of this state.
I-a. (a) A subdivider of subdivided lands of no more than 50 lots, parcels, units, or interests may apply to the attorney general for an exemption from the registration and annual reporting requirements of RSA 356-A:4, I and RSA 356-A:5 through RSA 356-A:9. Within 60 days of receipt of an application for exemption, the attorney general shall issue a written notice to the subdivider stating that the exemption has either been granted or denied, or the attorney general may identify deficiencies in the application. The subdivider shall have 15 days to correct the deficiencies, or a longer period mutually agreed to by the subdivider and the attorney general. If the attorney general fails to respond to the application within 60 days, the subdivider shall be deemed to have been granted an exemption. The governing body of the municipality in which the subdivision is located shall be provided notice and an opportunity to submit comments to the attorney general on any application for exemption under this paragraph.
(b) A subdivider shall be entitled to an exemption from the registration and annual reporting requirements of RSA 356-A:4, I and RSA 356-A:5 through RSA 356-A:9 if the following conditions are met:
(1) The subdivision shall have no more than 50 lots, parcels, units, or interests, including any that might be added at any future time.
(2) Each lot offered or disposed of under the exemption shall be limited exclusively by:
(A) Enforceable covenants or restrictions; or
(B) Enforceable zoning ordinances applicable to single-family residences or duplexes. For purposes of this subparagraph, mobile homes, townhouses, and other residences intended for use by one family shall be considered single family residences.
(3) The city or town in which the subdivision lots are located has a population of at least 5,000 at the time the application is filed, based on the most recent decennial U.S. census. If the subdivision is located in more than one town or city, only those lots located in a town or city that has a population of at least 5,000 may be exempted.
(4) Each of the cities or towns in which lots are located shall have, prior to the time the application is filed:
(A) Established a planning board pursuant to RSA 673:1, I.
(B) Enacted a process for the enforcement of the state building code pursuant to RSA 674:51.
(C) Appointed a building inspector pursuant to RSA 673:1, III.
(D) Adopted a zoning ordinance pursuant to RSA 674:16.
(E) Adopted subdivision regulations pursuant to RSA 674:36.
(5) The contract of sale shall require delivery of a warranty deed, free from monetary liens and encumbrances, to the purchaser within 360 days after the signing of the sales contract.
(6) The contract of sale shall be voidable at the election of the purchaser, in the event the warranty deed has not been delivered within the required time period, and the contract shall state that it is so voidable.
(7) The purchaser or purchaser's agent shall make a personal, on-site inspection of the lot purchased prior to signing a contact or agreement to purchase.
(8) If the subdivider or the subdivider's agent represents in any manner that improvements, roads, sewers, water, gas or electric service, or recreational amenities will be provided or completed by the subdivider, the purchase and sale agreement shall contain provisions so obligating the subdivider.
(9) The purchase and sale agreement shall contain notice of the cancellation rights under RSA 356-A:4, II and shall identify the person or institution holding deposits in escrow by name and address.
(10) The subdivider shall not:
(A) Have been convicted of any crime within the past 10 years which, if committed in this state, would constitute a felony.
(B) Have been the subject of a cease and desist order, revocation, injunction, or similar enforcement order relating to illegal condominium or land sales activity in this state or elsewhere.
(C) Have as a principal, any person or entity who has been subject to such enforcement order or criminal conviction, or who has been a principal in an entity that has been subject to such enforcement order or criminal conviction.
(11) The subdivider shall provide, by certified mail, a copy of the request for exemption under this paragraph to the governing body of each city or town in which lots are located. Postal receipts verifying that the governing body has been so notified shall be submitted to the attorney general with the application for exemption.
II. The attorney general may from time to time, in accordance with rules adopted by it pursuant to RSA 541-A, exempt from any of the provisions of this chapter any subdivision or any lots, parcels, units or interests in a subdivision if it finds that the enforcement of all of the provisions of this chapter with respect to such subdivision or lots, parcels, units or interests is not necessary in the public interest and for the protection of purchasers by reason of the small amount involved or the limited character of the offering, or because such property, in the discretion of the attorney general, is otherwise adequately regulated by federal, state, county, municipal, or town statutes or ordinances, or because such property has been registered and approved pursuant to the laws of any other state. Applications for exemption shall be filed in a form prescribed by the attorney general and shall be accompanied by an application fee of $200.
Source. 1970, 55:1. 1971, 474:1. 1977, 469:5. 1979, 289:1. 1983, 469:79. 1985, 300:7, I, b. 2014, 291:1, eff. Sept. 26, 2014.
Section 356-A:4
356-A:4 Prohibition on Dispositions of Interests in Subdivisions. –
Unless the subdivided lands or the transaction is exempted by RSA 356-A:3:
I. No subdivider may offer or dispose of any lot, parcel, unit or interest in subdivided lands located in this state, nor offer or dispose in this state of any lot, parcel, unit or interest in subdivided lands located without this state prior to the time the subdivided lands are registered in accordance with this chapter;
II. No subdivider, except as provided in RSA 356-A:6, IV, may dispose of any lot, parcel, unit or interest in subdivided lands unless he delivers to the purchaser a current public offering statement by the time of such disposition and such disposition is expressly and without qualification or condition subject to cancellation by the purchaser within 5 days from the contract date of the disposition, or delivery of the current public offering statement, whichever is later. If the purchaser elects to cancel, he may do so by notice thereof hand-delivered or deposited in the United States mail, return receipt requested, within the 5 day period, to the declarant or to any agent of the subdivider; provided, however, that if the purchaser elects to mail the notice of cancellation, he must also provide the subdivider with telephonic notice of cancellation within the 5 day period. Such cancellation shall be without penalty, and any deposit made by the purchaser shall be refunded in its entirety no later than 10 days from the receipt of such written notice of cancellation. "Contract date" shall not refer to the closing or settlement date, but shall refer to the creation of a binding obligation for consideration;
III. No person, other than the owner, subdivider, or regular employee thereof, shall act in this state as an agent of said owner or subdivider for the sale or disposition of subdivisions subject to the provisions of this chapter unless he is licensed pursuant to RSA 331-A.
IV. No person shall, in connection with the offer or disposition of any lot, parcel, unit or interest in subdivided lands located in this state or in connection with the offer or disposition in this state of any lot, parcel, unit or interest in subdivided lands without this state, conduct or participate in any type of lottery or contest or offer prizes or gifts for the purpose of inducing or encouraging any person to visit a subdivision, attend any meeting at which a subdivision will be discussed, or purchase a lot, parcel, unit or interest in subdivided lands; provided, however, that this paragraph shall not prohibit the reimbursement of a prospective purchaser for reasonable travel expenses or the offering, in a manner not dependent upon or connected with chance, of tangible personal property which will be delivered to the offeree not later than the time of the offeree's visit to a subdivision or attendance at a meeting at which a subdivision will be discussed.
Source. 1970, 55:1. 1977, 469:6. 1979, 289:3, eff. Oct. 1, 1979.
Section 356-A:5
356-A:5 Application for Registration. –
I. The application for registration of subdivided lands shall be filed in a form prescribed by the attorney general and shall contain the following documents and information:
(a) An irrevocable appointment of the attorney general to receive service of any lawful process in any noncriminal proceeding arising under this chapter against the subdivider or his personal representative;
(b) A legal description of the perimeter of subdivided lands offered for registration, together with a map showing the division proposed or made, and the dimensions of the lots, parcels, units or interests and the relation of the subdivided lands to existing streets, roads, and other off-site improvements;
(c) The states or jurisdictions in which an application for registration or similar document has been filed, and any adverse order, judgment, or decree entered in connection with the subdivided lands by the regulatory authorities in each jurisdiction or by any court;
(d) The subdivider's name, address, and the form, date, and jurisdiction of organization; and the address of each of its offices in this state;
(e) The name, address, and principal occupation for the past 5 years of every director, president, vice president, treasurer, clerk, of the subdivider or person occupying a similar status or performing similar functions; the extent and nature of any interest of each in the subdivider or the subdivided lands as of a specified date within 30 days of the filing of the application;
(f) If the subdivider is a closely held corporation, partnership, joint stock company, trust or sole proprietorship, the name, address and principal occupation of each trustee, stockholder, partner, or person having any beneficial interest therein;
(g) If the subdivider is a publicly held corporation, the name, address and principal occupation of each stockholder owning more than 10 percent of the shares outstanding;
(h) If the subdivider is a subsidiary corporation, the name, address and principal occupation of each stockholder or person having a beneficial interest therein, and the name, address and principal occupation of each stockholder owning more than 10 percent of the shares outstanding in the corporation or corporations to which it is subsidiary;
(i) a statement of the condition of the title to the subdivided lands, including all easements, conditions, covenants, restrictions, liens and other encumbrances, if any, affecting subdivided lands owned by the subdivider, with appropriate recording data, as of a specified date within 30 days of the date of application, which statement shall be in the form of a title opinion of a licensed attorney, not under salary to the subdivider or owner, or other evidence of title acceptable to the attorney general;
(j) Copies of the instruments which will be delivered to a purchaser to evidence his interest in the subdivided lands and of the contracts and other agreements which a purchaser will be required to agree to or sign;
(k) [Repealed.]
(l) If there is a blanket encumbrance or lien affecting more than one lot, parcel, unit or interest, a statement of the consequences for a purchaser of failure to discharge the blanket encumbrance or lien and the steps, if any, taken to protect the purchaser in case of this eventuality;
(m) [Repealed.]
(n) A statement of the zoning, subdivision, and other governmental approvals, if any, affecting the subdivided lands and also, if known, any existing tax and existing or proposed special taxes or assessments which affect the subdivided lands;
(o) A statement of the existing provisions for access, sewage disposal, water, and other public utilities in the subdivided lands; a statement of any improvements or amenities which may be constructed, an estimate of their cost and the schedule for their completion; provided, however, that if the subdivider will give no assurances as to the construction or completion of said improvements or amenities, a statement that no assurance will be given must be included; and a statement of the plan for financing the construction of said improvements or amenities and the maintenance of the subdivided lands;
(p) A description of the promotional plan for the disposition of the subdivided lands;
(q) The proposed public offering statement;
(r) If the subdivider is a corporation, a copy of its articles of incorporation with all amendments thereto;
(s) If the subdivider is a trust, a copy of all instruments by which the trust is created together with all amendments thereto;
(t) If the subdivider is a partnership, unincorporated association, joint stock company, or any other form of organization, a copy of its articles of partnership or association and all other papers pertaining to its organization, including all amendments thereto;
(u) If the subdivider is not the holder of legal title, copies of the appropriate documents required by subparagraphs (r), (s) or (t) shall be submitted for the holder of legal title;
(v) Any other information, including any current financial statement, which the attorney general by reasonable rules requires for the protection of purchasers. If the subdivider is a limited liability company, corporation, or other entity, personal financial statements from all principals holding more than a 25 percent ownership interest in the subdivider, certified as true and complete by the individual principals, accompanied by federal income tax returns for the 2 most recent full calendar years, may be submitted in lieu of financial statements for the subdivider. Financial information filed with the attorney general shall not be disclosed publicly except in connection with a hearing, civil action, or criminal action involving the party who submitted the information.
II. For subdivisions not entitled to exemption under RSA 356-A:3, I-a, a subdivider of subdivided lands of no more than 50 lots, parcels, units or interests may make an abbreviated registration in lieu of these requirements, which shall contain only the documents and information required by RSA 356-A:5, I(a), (c)-(h), (j), (n)-(p) and (v); provided, however, that this section shall not apply to subdivided lands involving time share interests.
III. A subdivider of a subdivision which has been registered under the federal Interstate Land Sales Full Disclosure Act may file, in lieu of the documents and information required by RSA 356-A:5, I(b)-(e), and (i)-(u) and RSA 356-A:6, I, a copy of an effective statement of record, a property report, and any exhibits requested by the attorney general, filed with the Secretary of Housing and Urban Development.
IV. The submission of documents and information required by RSA 356-A:5, I, may be satisfied by the documents and information contained in or attached to the public offering statement.
V. If the subdivider registers additional subdivided lands to be offered for disposition, he may consolidate the subsequent registration with any earlier registration offering subdivided lands for disposition under the same promotional plan.
VI. At any time the attorney general has reasonable cause to believe that the subdivider may be unable to complete the development of the subdivided lands, or provide for its maintenance, if responsibility therefor is assumed by the subdivider, as represented in its application for registration due to:
(a) Its failure to commence or complete the development of the subdivided lands according to schedules set forth in the application;
(b) Its failure to commence or complete the development of any other subdivided lands or condominium according to representations authorized and made by the subdivider or declarant in connection with the offering or disposing of any interest therein;
(c) Its failure to set forth a reasonable plan to obtain adequate financing to commence or complete the development of the subdivided lands or provide for its maintenance; or
(d) Its commission of any false, deceptive or misleading acts in connection with the offering or disposing of any interest in any subdivided lands or condominium;
it may require the subdivider to post a bond, in favor of the state, or to provide evidence of financial security in such amount as the attorney general determines to be necessary to provide reasonable assurance of the commencement and completion of the development of the subdivision. Such bond shall not be accepted unless it is with a surety company authorized to do business in this state. Any person aggrieved by the failure of the subdivider to complete or maintain the subdivided lands may proceed on such bond against the subdivider or surety or both to recover damages.
VII. Every application shall be accompanied by a fee in an amount equal to $30 per lot, parcel, unit or interest, except that the initial application fee shall not be less than $300 nor more than $2,000, and the fee for any application for registration of additional lots, parcels, units or interests shall not be less than $200 nor more than $2,000.
VIII. The applicant of a subdivision to be converted within the meaning of RSA 356-C:1, II, shall, in addition to the requirements contained in this section, include with the application for registration a copy of the notices described in RSA 356-C:3, I or II and a certified statement that such notices comply with the provisions of RSA 356-C:3, I or II and have been or will be mailed to each of the tenants in the subdivisions for which registration is sought, in compliance with RSA 356-C:3, I or II.
Source. 1970, 55:1. 1977, 469:7-12. 1981, 568:25. 1983, 398:2, 469:80. 1985, 300:7, I(b). 1989, 408:102, eff. July 1, 1989. 2009, 144:240, eff. July 1, 2009. 2011, 224:319, eff. July 1, 2011. 2014, 291:2, eff. Sept. 26, 2014. 2015, 256:3, eff. Jan. 1, 2016.
Section 356-A:6
356-A:6 Public Offering Statement. –
I. A public offering statement shall be in a form prescribed by the attorney general and shall include the following:
(a) The name and principal address of the subdivider;
(b) A general description of the subdivided lands stating the total number of lots, parcels, units, or interests in the offering;
(c) The significant terms of any encumbrances, easements, liens, and restrictions, including zoning, water pollution and other regulations affecting the subdivided lands and each unit or lot, and a statement indicating whether or not any such zoning, water pollution and other regulations have been complied with;
(d) A statement of the use for which the property is offered;
(e) Information concerning improvements, including streets, water supply, levees, drainage control systems, irrigation systems, sewage disposal facilities and customary utilities, and the estimated cost, if any, to be borne by the purchaser, 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 interest in subdivided lands;
(f) Additional information reasonably required by rules adopted by the attorney general, pursuant to RSA 541-A, to assure full and fair disclosure to prospective purchasers, including a statement of the cancellation rights set forth in RSA 356-A:4, II.
II. The public offering statement shall not be used for any promotional purposes until it is approved by the attorney general. The attorney general may, in his discretion, authorize the use of such statement prior to his approval of the registration of the subdivided lands under such conditions as he deems appropriate. No person may advertise or represent that the attorney general approves or recommends the subdivided lands or disposition thereof. No portion of the public offering statement may be underscored, italicized, or printed in larger or heavier or different color type than the remainder of the statement unless the attorney general requires it, and no statement may be used unless in its entirety.
III. The attorney general may require the subdivider at any time to alter or amend the proposed public offering statement in order to assure full and fair disclosure to prospective purchasers. A public offering statement is not current unless all amendments are incorporated.
IV. Any subdivider which has been permitted to submit an abbreviated registration pursuant to RSA 356-A:5, II, and any subdivider or subdivided lands which has been registered under the federal Interstate Land Sales Full Disclosure Act is not required to prepare a public offering statement to be used in connection with the offer or disposition of any interest in the subdivided lands.
Source. 1970, 55:1. 1977, 469:13-15. 1985, 300:7, I(b), 15.
Section 356-A:7
356-A:7 Inquiry and Examination. –
I. Upon receipt of an application for registration in proper form, the attorney general shall forthwith initiate such examination as he shall deem necessary to determine:
(a) That the subdivider can convey or can reasonably be expected to be able to convey or cause to be conveyed the interest in subdivided lands offered for disposition if the purchaser complies with the terms of the offer and, when appropriate, that release clauses, conveyances in trust or other safeguards have been provided;
(b) That there is reasonable assurance that all proposed improvements will be completed as represented. Reasonable assurance includes, but is not limited to, institutional financing in the form of a revolving line of credit in an amount equal to one-fourth of the total cost of constructing the residential units being registered, so long as (i) the loan documents provide (a) that funds may be re-advanced during the term of the loan to construct the residential units, and (b) that the institutional lender shall notify the attorney general in the event that the revolving line of credit is cancelled and (ii) in addition to the funds allocated to residential unit construction, the applicant shall provide evidence of adequate funds to complete any infrastructure, such as roads and utilities, necessary to service the units being registered. This subparagraph shall not prohibit the attorney general from finding other forms of financing to provide reasonable assurance. If the attorney general determines that a revolving line of credit has been cancelled, or is no longer adequate to pay for the cost of constructing the units that have been registered, the attorney general may issue a temporary cease and desist order pursuant to RSA 356-A:12;
(c) That the general promotional plan is not false or misleading and complies with the standards prescribed by the attorney general in his rules and affords full and fair disclosure;
(d) Whether the subdivider has not, or if a corporation its officers, directors, and principals have not, been convicted of a crime involving land dispositions or any aspects of the land sales business or any other felony in this state, the United States, or any other state or foreign country within the past 10 years and has not been subject to any injunction or administrative order within the past 10 years restraining a false or misleading promotional plan involving land dispositions;
(e) That the public offering statement requirements of this chapter have been satisfied.
II. All reasonable expenses incurred by the attorney general in carrying out the examination required by paragraph I shall be paid by the subdivider and no order registering the subdivided lands shall be entered until such expenses have been fully paid.
Source. 1970, 55:1. 1977, 469:16. 1985, 300:7, I, b. 2015, 256:4, eff. Jan. 1, 2016.
Section 356-A:8
356-A:8 Notice of Filing and Registration. –
I. Upon receipt of the application for registration in proper form, the attorney general shall issue a notice of filing to the applicant. As soon as possible and within 60 days from the date of the notice of filing, the attorney general shall enter an order registering the subdivided lands or rejecting the registration. If no order or rejection is entered within 60 days from the date of notice of filing, the land shall be deemed registered unless the applicant has consented in writing to a delay. Notice of all registrations shall be recorded in the registry of deeds of each county in which said land is situated within 10 days of their receipt by the attorney general.
II. If the attorney general affirmatively determines, upon inquiry and examination, that the requirements of this chapter have been met, he shall enter an order registering the subdivided lands and shall designate the form of the public offering statement.
III. If the attorney general determines upon inquiry and examination that any of the requirements of this chapter have not been met, the attorney general shall notify the applicant that the application for registration must be corrected in the particulars specified within 15 days. If the requirements are not met within the time allowed, the attorney general shall enter an order rejecting the registration which shall include the findings of fact upon which the order is based. During the aforesaid 15 day period, the applicant may petition for reconsideration and shall be entitled to a hearing within 15 days of receipt by the attorney general of said petition. The attorney general shall enter his findings on said petition within 10 days of said hearing. The attorney general shall order a rejection of the registration until such time as the hearing, once requested, has taken place and the attorney general has entered his findings thereon, or such petition is withdrawn; provided, however, that if by the time that said findings are entered, all of the particulars specified in the attorney general's notice have been corrected or, as a result of the attorney general's reconsideration and hearing, have been met to the attorney general's satisfaction, the attorney general shall order registration of the subdivided lands.
IV. The fact that a statement of record with respect to a subdivision has been filed or is in effect shall not be deemed a finding by the attorney general that the statement of record is true and accurate on its face, or be held to mean the attorney general has in any way passed upon the merits of, or given approval to, such subdivision. It shall be unlawful to make, or cause to be made, to any prospective purchaser any representation contrary to this paragraph.
V. The subdivider shall not make any material change in the plan of disposition or development of the subdivided lands contained in the application for registration without notifying the attorney general, obtaining his prior approval and making appropriate amendment of the public offering statement.
Source. 1970, 55:1. 1977, 469:17, 18. 1985, 300:7, I, b. 1999, 100:2, eff. Jan. 1, 2000.
Section 356-A:9
356-A:9 Annual Report. –
I. On April 1 of each year following the registration of the subdivided lands, the subdivider shall, until such time as all of the improvements in the subdivided lands have been completed and all of the lots, parcels, units or interests have been disposed of by the subdivider, file a report in the form prescribed by the attorney general. The report shall reflect any material changes in information contained in the original application for registration, including but not limited to any change in the ownership of interests in the corporation or organization as required in RSA 356-A:5, I(f), (g) and (h).
II. The attorney general at his option may permit the filing of annual reports within 30 days after the anniversary date of the consolidated registration in lieu of the anniversary date of the original registration.
Source. 1970, 55:1. 1977, 469:19. 1985, 300:7, I, b.
Section 356-A:9-a
356-A:9-a Escrow of Deposits. –
Any deposit made in regard to any disposition of a lot, parcel, unit or interest in subdivided lands shall be held in escrow until settlement or closing. Such escrow funds shall be deposited in a separate account designated for this purpose; provided, however, if such funds are being held by a real estate broker or attorney licensed under the laws of this state, they may be placed in that broker's or attorney's regular escrow account and need not be placed in a separate designated account. Such escrow funds shall not be subject to attachment by the creditors of either the purchaser or the subdivider.
Source. 1977, 469:20, eff. Sept. 10, 1977.
Section 356-A:9-b
356-A:9-b Resale by Purchaser. –
I. In the event of any resale of a lot, parcel, unit or interest in subdivided lands by any person other than the subdivider, the prospective purchaser shall have a right to obtain from the property owners' association, if any, prior to the contract date of disposition, the following:
(a) A statement of any capital expenditures and major maintenance expenditures anticipated by the property owners' association within the current or succeeding 2 fiscal years;
(b) A statement of the status and amount of any reserve for the major maintenance or replacement fund and any portion of such fund earmarked for any specified project by the board of directors;
(c) A copy of the income statement and balance sheet of the property owners' association for the last fiscal year for which such statement is available;
(d) A statement of the status of any pending suits or judgments in which the property owners' association is a party defendant;
(e) A statement setting forth what insurance coverage is provided for all property owners by the property owners' association and what additional insurance coverage would normally be secured by each individual property owner; and
(f) A statement that any improvements or alterations made to the lot, parcel, unit or interest by the prior property owner are not known to be in violation of any restrictions and covenants imposed upon the subdivided lands.
II. The principal officer of the property owners' association, or such other officer or officers as the instruments creating such association may specify, shall furnish the statements prescribed by paragraph I upon the written request of any prospective purchaser within 10 days of the receipt of such request.
Source. 1977, 469:20, eff. Sept. 10, 1977.
Section 356-A:9-c
356-A:9-c Taxation. –
Each lot, parcel, or unit in which time sharing interests, as defined in RSA 356-A:1, XVI, have been created shall be valued for purposes of real property taxation as if such lot, parcel, or unit were owned by a single taxpayer. Condominium units in which time sharing interests have been created shall be taxed as wholly owned condominium units. The total cumulative purchase price paid for time sharing interests in any such lot, parcel, or unit shall not be determinative of its assessed value. No taxes shall be assessed against the individual owner of a time sharing interest but shall be assessed against the record owner of such lot, parcel, or unit; the owners' association; trustee; or managing agent, as appropriate.
Source. 1985, 107:1. 1989, 128:1, eff. May 15, 1989.
Section 356-A:10
356-A:10 General Powers and Duties. –
I. [Repealed.]
II. If it appears that any person has engaged or is about to engage in any false, deceptive or misleading advertising to offer or dispose of any lot, parcel, unit or interest in subdivided lands, the attorney general may require by written notice the filing of advertising material relating to such subdivided lands prior to its distribution.
III. If it appears that a person has engaged or is about to engage in an act or practice constituting a violation of a provision of this chapter or a rule or order hereunder, the attorney general, with or without prior administrative proceedings, may bring an action in the superior court to enjoin the acts or practices and to enforce compliance with this chapter or any rule or order hereunder. Upon proper showing, injunctive relief or temporary restraining orders shall be granted, and a receiver may be appointed pursuant to paragraph III-a. The attorney general is not required to post a bond in any court proceedings.
III-a. In connection with any action brought under paragraph III, the attorney general may also petition the court to appoint a receiver to take charge of the business of any person during the course of litigation when the attorney general has reason to believe that such an appointment is necessary to prevent such person from continuing to engage in any act or practice declared unlawful by this chapter and to preserve the assets of said person to restore to any other person any money or property, acquired by any unlawful act or practice. The receiver shall have the authority to sue for, collect, receive and take into his possession all the goods and chattels, rights and credits, moneys and effects, lands and tenements, books, records, documents, papers, choses in action, bills, notes and property of every description, including property with which such property has been mingled if it cannot be identified in kind because of such commingling, derived by means of any unlawful act or practice, and to sell, convey and assign the same and hold, dispose and distribute the proceeds thereof under the direction of the court. Any person who has suffered damages as a result of the use of any unlawful act or practice and submits proof to the satisfaction of the court that he has in fact been damaged may participate with general creditors in the distribution of the assets to the extent that he has sustained out-of-pocket losses. In the case of a partnership or business entity, the receiver shall settle the estate and distribute the assets under the direction of the court. The court shall have jurisdiction of all questions arising in such proceedings and may make such orders and judgments therein as may be required. In lieu of the foregoing procedure, the court may permit any person alleged to have violated this chapter to post a bond in a manner and in an amount to be fixed by the court. Said bond shall be made payable to the state and may be distributed by the court only after a decision on the merits and the process of appeals has been exhausted.
IV. The attorney general may intervene in any suit involving subdivided lands alleging violation of this chapter. In any such suit by or against a subdivider involving subdivided lands, the subdivider promptly shall furnish the attorney general notice of the suit and copies of all pleadings.
V. The attorney general may:
(a) Accept registrations filed in other states, in lieu of the filing required by this chapter upon the filing of a fee of $100;
(b) Contract with similar agencies in this state or other jurisdictions to perform investigative functions;
(c) Accept grants in aid from any source.
VI. The attorney general may cooperate with similar agencies in other jurisdictions to establish uniform filing procedures and forms, uniform public offering statements, advertising standards, rules and common administrative practices.
Source. 1970, 55:1. 1977, 469:21, 22. 1985, 300:7, I(b), 16, eff. Jan. 1, 1986; 300:30, eff. July 1, 1987.
Section 356-A:11
356-A:11 Investigations and Proceedings. –
I. The attorney general may:
(a) Make necessary public or private investigations within or outside of this state to determine whether any person has violated or is about to violate this chapter or any rule or order hereunder, or to aid in the enforcement of this chapter or in the prescribing of rules and forms hereunder;
(b) Require or permit any person to file a statement in writing, under oath and subject to the pains and penalties of perjury or otherwise as the agency determines, as to all the circumstances concerning matters under investigation.
II. For the purpose of any hearing under this chapter, the attorney general or any officer designated by rule may administer oaths or affirmations. Upon his own motion or upon request of any party, the attorney general or any officer designated by rule shall subpoena witnesses, issue subpoena duces tecum, compel their attendance, take evidence, and require the production of any matter which is relevant to such hearing, including the existence, description, nature, custody, condition, and location of any books, documents, or other tangible things and the identity and location of persons having knowledge of relevant facts or any other matter reasonably calculated to lead to the discovery of material evidence.
III. Upon failure to obey a subpoena or subpoena duces tecum or to answer questions propounded by the investigating officer, or to produce any material required by the investigating officer, and upon reasonable notice to all persons affected thereby, the attorney general may apply to the superior court for an order compelling compliance.
Source. 1970, 55:1. 1985, 300:7, I(b).
Section 356-A:12
356-A:12 Cease and Desist Orders. –
I. If the attorney general determines after notice and hearing that a person has:
(a) Violated any provisions of this chapter;
(b) Directly or through an agent or employee knowingly engaged in any false, deceptive, or misleading advertising, promotional, or sales methods to offer or dispose of any interest in subdivided lands;
(c) Made any material change in the plan of disposition and development of the subdivided lands subsequent to the order of registration without notifying the attorney general, obtaining his prior approval and making an appropriate amendment to the public offering statement;
(d) Disposed of any subdivided lands which have not been registered with the attorney general;
(e) Violated any lawful order or rule of the attorney general;
he may issue an order requiring the person to cease and desist from the unlawful practice and to take such affirmative action as in the judgment of the attorney general will carry out the purposes of this chapter.
II. If the attorney general determines that the public interest will be irreparably harmed by delay in issuing an order, he may, without hearing, issue a temporary cease and desist order. Prior to issuing the temporary cease and desist order, the attorney general shall attempt to give telephonic or other notice of the proposal to issue a temporary cease and desist order to the person. Every temporary cease and desist order shall include findings of fact in support of the attorney general's determination that the public interest will be irreparably harmed by delay in issuing the order and a provision that upon request a hearing will be held within 10 business days of the deposit in the United States mails or delivery in hand of said order to determine whether or not it becomes permanent.
Source. 1970, 55:1. 1977, 469:23, 24. 1985, 300:7, I(b).
Section 356-A:13
356-A:13 Revocation. –
I. A registration may be revoked after notice and hearing upon a written finding of fact that the subdivider has:
(a) Failed to comply with the terms of a cease and desist order;
(b) Been convicted after final appeal in any court subsequent to the filing of the application for registration for a crime involving fraud, deception, false pretenses, misrepresentation, false advertising, or dishonest dealing in real estate transactions;
(c) Disposed of, concealed, or diverted any funds or assets of any person so as to defeat the rights of subdivision purchasers;
(d) Failed to perform any stipulation or agreement made with the agency as an inducement to grant any registration, to reinstate any registration, or to approve any promotional plan or public offering statement;
(e) Made intentional misrepresentations or concealed material facts in an application for registration.
Findings of fact, if set forth in statutory language, shall be accompanied by a concise and explicit statement of the underlying facts supporting the findings.
II. If the attorney general finds after notice and hearing that the subdivider has been guilty of a violation for which revocation could be ordered, he may issue a cease and desist order instead.
III. If the attorney general makes a determination that the public interest will be irreparably harmed by delay in issuing an order, he may, without hearing, issue a temporary cease and desist order subject to the requirements of RSA 356-A:12, II.
Source. 1970, 55:1. 1977, 469:25, 26. 1985, 300:7, I(b).
Section 356-A:14
356-A:14 Judicial Review. –
I. Any person aggrieved by a decision or action of the attorney general may, by petition, appeal from said decision or action to the superior court for review. The superior court may affirm, reverse, or modify the decision or action of the attorney general as justice may require.
II. The filing of the petition does not itself stay enforcement of the attorney general's decision. The attorney general may grant, or the superior court may order, a stay upon appropriate terms.
III. Within 30 days after the service of the petition, or within further time allowed by the court, the attorney general shall transmit to the superior court the original or a certified copy of the entire record of the proceeding under review. By stipulation of all parties to the review proceedings, the record may be shortened. A party unreasonably refusing to stipulate to limit the record may be taxed by the court for the additional costs. The court may require or permit subsequent corrections or additions to the record.
IV. If, before the date set for a court hearing, application is made to the court for leave to present additional evidence, and it is shown to the satisfaction of the court that the additional evidence is material and that there were good reasons for failure to present it in the proceeding before the attorney general, the court may order that the additional evidence be taken before the attorney general upon conditions determined by the court. The attorney general may modify his findings and decision by reason of the additional evidence and shall file that evidence and any modifications, new findings, or decisions with the superior court.
Source. 1970, 55:1. 1977, 469:27. 1985, 300:7, I(b).
Section 356-A:15
356-A:15 Penalties. –
Any person who wilfully violates any provision of RSA 356-A or of a rule adopted under it or any person who wilfully, in an application for registration, makes any untrue statement of a material fact or omits to state a material fact shall be guilty of a class B felony if a natural person, or guilty of a felony if any other person.
Source. 1970, 55:1. 1973, 528:249, eff. Oct. 31, 1973 at 11:59 p.m.
Section 356-A:16
356-A:16 Civil Remedy. –
I. Any subdivider who disposes of any lot, parcel, unit or interest in subdivided lands in violation of this chapter, or who in disposing of any lot, parcel, unit or interest in subdivided lands makes an untrue statement of a material fact, or who in disposing of any lot, parcel, unit or interest in subdivided lands omits a material fact required to be stated in a registration statement or public offering statement or necessary to make the statements made not misleading, is liable to the purchaser of such lot, parcel, unit or interest, as set forth in paragraph II, unless, in the case of an untruth or omission, it is proved that the purchaser knew of the untruth or omission or that the subdivider did not know and in the exercise of reasonable care could not have known of the untruth or omission, or that the purchaser did not rely on the untruth or omission.
II. Any purchaser, who is eligible for relief under paragraph I, may bring an action to restrain by temporary or permanent injunction any act or practice declared unlawful by this chapter and may recover the consideration, including all finance charges, paid in connection with the purchase of the lot, parcel, unit or interest in subdivided lands together with interest at the rate of 6 percent per year from the date of all such payments, less the amount of any income received from such subdivided lands, upon tender of deed reconveying title to the subdivider which is as good and marketable as that which was conveyed to the purchaser by the subdivider. In the discretion of the court, exemplary damages of up to $5,000 may also be awarded. If the purchaser no longer owns the lot, parcel, unit or interest in subdivided lands, he may recover the amount that would be recoverable upon a tender of a reconveyance less the value of the lot, parcel, unit or interest in subdivided lands when disposed of and less interest at the rate of 6 percent per year on that amount from the date of disposition. If the purchaser prevails in any such action, he may be awarded all reasonable court costs and attorney's fees, as approved by the court.
III. Any person who materially participates in any disposition of a lot, parcel, unit or interest in subdivided lands in the manner specified in paragraph I and knew of the existence of the facts by reason of which the liability is alleged to exist is also liable jointly and severally with the subdivider if and to the extent such liability may exist at common law or under other statutory provision. A right to contribution exists among persons so liable.
IV. Every person whose occupation gives authority to a statement which with his consent has been used in an application for registration or public offering statement, if he is not otherwise associated with the subdivision and development plan in a material way, is liable only for false statements knowingly made.
V. At any time before the entry of an action under this section, and thereafter only with the approval of the court, a subdivider or any other person may limit his exposure herein by tendering a written offer to reimburse the injured person for all mandatory damages set forth in paragraph II, including reasonable attorney's fees and court costs, if any, to the date of such tender upon reconveyance of title as set forth in paragraph II.
VI. A person may not recover under this section in actions commenced more than 2 years from the date the purchaser knew or should have known of the existence of his cause of action, but in any case not more than 6 years after his first payment of money to the subdivider in the contested transaction.
VII. Any stipulation or provision purporting to bind any person acquiring subdivided lands to waive compliance with this chapter or any rule or order under it is void.
VIII. The owner, publisher, licensee or operator of any newspaper, magazine, visual or sound radio broadcasting station or network of stations or the agents or employees of any such owner, publisher, licensee or operator of such newspaper, magazine, station or network of stations shall not be liable under this chapter for any advertising of any subdivision, lot, parcel or unit in any subdivision carried in any such newspaper or magazine or by any such visual or sound radio broadcasting station or network of stations nor shall any of them be liable under this chapter for the contents of any such advertisement.
IX. Any broker or real estate salesman violating any provision of this chapter may, in addition to any other penalty imposed by this chapter, have his real estate broker's or salesman's license suspended or revoked by the real estate commission pursuant to RSA 331-A for such time as in the circumstances it considers justified.
Source. 1970, 55:1. 1977, 469:28, eff. Sept. 10, 1977.
Section 356-A:17
356-A:17 Jurisdiction. –
Dispositions of subdivided lands are subject to this chapter, and the superior courts of this state have jurisdiction in claims or causes of action arising under this chapter if:
I. The subdivided lands offered for disposition are located in this state; or
II. The subdivider's principal office is located in this state; or
III. Any offer or disposition of subdivided lands is made in this state, whether or not the offeror or offeree is then present in this state, if the offer originates within this state or is directed by the offeror to a person or place in this state and received by the person or at the place to which it is directed.
Source. 1970, 55:1, eff. May 4, 1970.
Section 356-A:18
356-A:18 Interstate Rendition. –
In the proceedings for extradition of a person charged with a crime under this chapter, it need not be shown that the person whose surrender is demanded has fled from justice or at the time of the commission of the crime was in the demanding or other state.
Source. 1970, 55:1, eff. May 4, 1970.
Section 356-A:19
356-A:19 Service of Process. –
I. Service may be made by delivering a copy of the process to the office of the attorney general but it is not effective unless the plaintiff (which may be the attorney general in a proceeding instituted by him):
(a) Forthwith sends a copy of the process and of the pleading by certified or registered mail to the defendant or respondent at his last known address, and
(b) The plaintiff's affidavit of compliance with this section is filed in the case on or before the date specified by the court on the summons, or within such further time as the court allows.
II. If any person, including any nonresident of this state, engages in conduct prohibited by this chapter or any rule or order hereunder, and has not filed a consent to service of process and personal jurisdiction over him cannot otherwise be obtained in this state, that conduct authorizes the attorney general to receive service of process in any noncriminal proceeding against him or his successor which grows out of that conduct and which is brought under this chapter or any rule or order hereunder, with the same force and validity as if served on him personally. Notice shall be given as provided in paragraph I.
Source. 1970, 55:1. 1985, 300:7, I(b). 2014, 204:13, eff. July 11, 2014.
Section 356-A:20
356-A:20 Conflict of Interests. –
No member of the consumer protection and antitrust bureau, department of justice or any partnership, firm or corporation with which a member is associated shall act as subdivider, agent, attorney or broker of a subdivision, lot, parcel, unit or interest therein or offer or dispose of a subdivision, lot, parcel, unit or interest therein required to be approved pursuant to RSA 356-A:4.
Source. 1970, 55:1. 1985, 300:7, I(b).
Section 356-A:21
356-A:21 Short Title. –
This chapter may be cited as the Land Sales Full Disclosure Act.
Source. 1970, 55:1, eff. May 4, 1970.
Section 356-A:22
356-A:22 Severability. –
If any provision of this chapter or the application thereof to any person or circumstances is held invalid, the invalidity does not affect other provisions or applications of the chapter which can be given effect without the invalid provisions or application, and to this end the provisions of this chapter are severable.
Source. 1970, 55:1, eff. May 4, 1970.