N.H. Admin. Code § Jus 1404.17

Current through Register No. 50, December 12, 2024

Section Jus 1404.17 - Bulk Sales to Builders and Developers

(a) A declarant may dispose of some or all units or interests in a condominium otherwise subject to registration or exemption under RSA 356-B prior to registration or exemption of said units or interests under any other provision of these rules to persons who will further develop or improve them and offer and dispose of them to purchasers for residential use under the following conditions:

(1) The declarant shall, prior to disposing of any units or interests to such persons, apply to the bureau in writing for an exemption from RSA 356-B:50, I and II;

(2) The application to the bureau shall be by affidavit, captioned CPLC120-BULK SALE;

(3) The application shall be signed by the declarant or an officer or principal of the declarant authorized to sign such statement;

(4) The application shall be accompanied by a non-refundable fee in the amount of $200;

(5) The declarant shall provide in the application the following:

a. The names, addresses, and telephone numbers of the declarant, one of its principals, and its attorneys, if any;

b. The name and location of the condominium;

c. The total number of units or interests that are included in, or might eventually be included in the condominium;

d. The number of units or interests to be disposed of pursuant to the bulk sale;

e. The names, addresses, and telephone numbers of any and all persons or entities to which the disposition is made pursuant to the bulk sale;

f. If the disposition is made to a legally constituted entity, identification of the legal form of said entity, the location of its principal place of business, and the identity of each principal thereof;

g. A statement that no offers or dispositions of the units or interests for which exemption is sought pursuant to the bulk sale have been made prior to the date the notice was mailed or delivered to the bureau, except as provided by (b) below; and

h. A statement that the purchase agreement between the declarant and the persons or entities identified in clause e. above shall contain an acknowledgment that no offers or dispositions can be made to any purchaser for residential use until such time as the condominium and the subject units or interests have been registered or exempted by the bureau upon application by the purchaser thereof;

(6) All units or interests subject to Jus 1404.17 shall be registered or exempted by the bureau prior to offers or dispositions being made to purchasers for residential use, regardless of whether a subsequent declarant is to offer or dispose of fewer than 10 units therein; and

(7) The provisions of Jus 1404.17 shall not apply to any condominium involving time share interests.

(b) Within 30 days after receipt of an application for a bulk sale exemption, the bureau shall notify the applicant, either orally or in writing, that:

(1) The application contains apparent errors or omissions, which shall be identified by the bureau;

(2) The application has been denied in whole or in part;

(3) The exemption has been granted in whole or in part; or

(4) The applicant shall be required to submit additional information.

(c) The time limit imposed by Jus 1404.17(b) shall be extended by the bureau upon written agreement of the applicant.

(d) No person shall engage in any conduct with respect to which an exemption has been or should have been sought under this rule, until such time as the application for exemption has been granted.

(e) The bureau shall impose any condition of exemption for the protection of the purchasers pursuant to RSA 356-B.

(f) Any exemption granted pursuant to this section shall be limited to the disposition described in the notice submitted by declarant pursuant to this section.

(g) If the disposition of units or interests identified in an application submitted to the bureau pursuant to this section is not consummated as set forth in the application, the declarant shall so notify the bureau in writing.

(h) Neither this section, nor any other section of these rules or of RSA 356-B shall be construed to prohibit a declarant from soliciting or negotiating offers to purchase some or all units or interests in a condominium prior to registration or exemption of those units from persons or entities who will further develop or improve such units and offer or dispose of them to purchasers for residential use, provided that the declarant shall apply for, and receive exemption pursuant to this section prior to disposing of such units or interests.

N.H. Admin. Code § Jus 1404.17

(See Revision Note at chapter heading for Jus 1400) #9783-A, eff 9-11-10

Amended by Volume XXXIX Number 46, Filed November 14, 2019, Proposed by # 12910, Effective 10/24/2019, Expires 10/24/2029.