N.J. Admin. Code § 5:26-4.2

Current through Register Vol. 56, No. 8, April 15, 2024

Section 5:26-4.2 - Contents of public offering statement

(a) The public offering statement shall contain the following information:

1. The name and principal address of the developer;

2. A narrative description of the interest to be offered including but not limited to the rights and obligations of purchasers in their lots, parcels, units or interests and in the common elements;

3. A narrative description of the development including but not limited to the total number of lots, parcels, units, or interests in the offering, the total number of lots, parcels, units, or interests to be constructed in the entire project, the present and proposed access to the development and the anticipated completion date of the present offering and of the entire development;

4. Relevant community information including but not limited to the existence and location of hospitals, health and recreational facilities, schools, fire and police protection, places of worship, streets, water supplies, levees, drainage control systems, irrigation systems, customary utilities, etc.;

5. A statement of the nature, type and capacity of improvements to be installed by the developer and the estimated date of completion and whether they will be dedicated to the public use. In the event the developer is to construct common recreation or community facilities a statement, together with any plans, of the nature, size, capacity and amenities of such recreational and community facilities such as, but not limited to, air conditioning, furniture, supplies, carpet or drapes, their location within the development and whether or not the use thereof will be limited to owners of the lots, parcels, units or interests, or whether the common recreational or community facilities will be available for use by the general public;

6. A statement of the proposed method of operation and management of the common elements and facilities;

7. The following documents:

i. A statement as to who will control the operation and management of the common elements and facilities and when control will be vested in any association, trust or other entity;

ii. Copies of any actual or proposed management or service contract, lease or agreement affecting the use, maintenance or access of or to any or all of the common elements or facilities;

8. A copy of the proposed budget for the operation and maintenance of the common elements and facilities based on full occupancy, together with the proposed annual assessment and the monthly charges to be assessed to each type of unit. The budget shall specifically state the amount set aside as reserves for the replacement of the common elements and facilities and shall be accompanied by a letter of adequacy certified by an independent public accountant or other independent expert and by a letter of adequacy of the hazard and liability insurance coverage certified by an independent insurance agent or broker;

9. The following documents:

i. A description of any management or service contract, lease or other contract or agreement affecting the use, maintenance or access of or to any or all of the common elements or community facilities together with a statement as to the effect of each upon the purchaser;

ii. Copies of any management or services contract, lease or agreement affecting the use, maintenance or access of or to any or all of the common elements or facilities;

10. A statement of the relationship, if any, between the developer and the management or servicing agent or firm;

11. A copy of the master deed, declaration of covenants and restrictions and/or any other documents of creation that have been or will be recorded, and the date and book and page thereof;

12. A statement explaining any restrictions on occupancy, the right of alienation and the right of alteration of the lot, parcel, unit or interest;

13. Copies of the instruments that will be delivered to purchasers to evidence their interest in the development;

14. A statement that all monies paid to the developer prior to closing will be held in a separate trust account and the name and location of the institution where the trust account is maintained and the name and address of any trust or escrow agent, until closing or termination of the contract or until a bond or other guarantee acceptable to the Agency is provided. In no event shall the escrow be released before the expiration of the seven-day rescission period;

15. The significant terms of any encumbrances, easements, liens and restrictions, including but not limited to zoning regulations, affecting such lands and each lot, parcel, unit or interest, as well as the use and zoning of adjoining lands;

16. A statement as to whether the property or any portion thereof is regularly or periodically subject to natural forces that would tend to adversely affect the use or enjoyment of the property and whether the property or any portion thereof is located in a Federally designated flood hazard area;

17. A statement as to whether the property or any portion thereof is subject to man made forces that would tend to adversely affect the use or enjoyment of the property such as, but not limited to, the property's proximity to airports or flight paths, railroads, noisy or polluting industrial use or other similar forces. This statement shall also include the text of the notice required to be given to new home purchasers pursuant to 46:3C-8 and shall indicate that the rights of the purchaser set forth in that notice are in addition to, and not in lieu of, the rights established by the Planned Real Estate Development Full Disclosure Act and these rules;

18. A statement of all existing taxes affecting any lot, parcel, unit or interest, as well as the estimated real estate tax on each lot, parcel, unit or interest, showing the value thereof and the tax ratio and tax rate for the last three years;

19. A statement of all existing or proposed special taxes or assessments of record and who shall be responsible for payment thereof;

20. A statement of the estimated title closing or settlement costs to be paid by the purchaser that are charged by the developer or the agent of the developer;

21. A statement explaining the warranty or guarantee given by the developer and the rights and remedies of the purchaser;

22. A statement, printed in 10-point bold face type or larger, conspicuously located and simply stated, that the purchaser has the right to cancel any contract or agreement for the purchase of any lot, parcel, unit or interest in the development, without cause, by sending or delivering a written notice of cancellation to the developer or the agent of the developer by midnight of the seventh calendar day following the day on which such contract or agreement is executed and that all monies paid will be promptly refunded; and

23. A statement explaining the nature, type and amount of hazard and liability insurance supplied or to be supplied by the developer or association and what the insurance covers, an explanation of the nature and type of hazard and liability insurance recommended to be carried by the owner and a statement of the availability and necessity of flood hazard insurance.

N.J. Admin. Code § 5:26-4.2

As amended, R.1979 d.439, eff. 11/1/1979.
See: 11 New Jersey Register 497(a), 11 New Jersey Register 610(b).
As amended, R.1981 d.130, eff. 5/7/1981.
See: 12 New Jersey Register 631(b), 13 New Jersey Register 259(a).
(a)8, 13, 17 and 25 amended.
As amended, R.1983 d.446, eff. 10/17/1983.
See: 15 New Jersey Register 1055(a), 15 New Jersey Register 1758(b).
Substantially amended text.
Amended by R.1996 d.94, effective 2/20/1996.
See: 27 New Jersey Register 4478(a), 28 New Jersey Register 1226(a).
Amended by R.2001 d.228, effective 7/16/2001.
See: 33 New Jersey Register 1247(a), 33 New Jersey Register 2474(a).
In (a)17, added the last sentence.