PROPERTY IN GENERAL
SALE OR DISPOSITION OF LAND LOCATED OUTSIDE THE STATE
55-1806. Application for registration. (1) The application for registration of subdivided lands shall be filed as prescribed by the commission and shall contain the following documents and information:
(a) An irrevocable appointment of the commission to receive service of any lawful process in any noncriminal proceeding arising under this chapter against the applicant or his personal representative;
(b) A legal description of the subdivided lands offered for registration, together with a map showing the division proposed or made, the dimensions of the lots, parcels, units or interests, and the relation of the subdivided lands to existing streets, roads, waterways, schools, churches, shopping centers, public transportation facilities in existence or under construction and other off-site improvements, in existence or under construction;
(c) The state 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 applicant’s name, address, and the form, date and jurisdiction of organization and the address of each of its offices in this state;
(e) If a corporation, partnership or other legal entity, the name, address and principal occupation for the past five (5) years of every director, officer, general partner, member, manager or person occupying a similar status or performing similar functions; the extent and nature of his interest in the applicant or the subdivided lands as of a specified date within thirty (30) days of the filing of the application;
(f) A statement indicating whether, within the past ten (10) years, the applicant, its individual directors, officers, general partners, members or managers have been:
(i) Convicted of a crime involving land dispositions or any aspect of the land sales business in this state, the United States or any other state or foreign country;
(ii) Adjudicated liable and had a civil judgment entered against him for making a false or misleading promotional plan involving land dispositions; or
(iii) Subject to any injunction or administrative order restraining a false or misleading promotional plan involving land dispositions.
(g) A statement, in a form acceptable to the commission, of the condition of the title to the subdivided lands including encumbrances as of a specified date within thirty (30) days of the date of application by a title opinion of a licensed attorney, not a salaried employee, officer or director of the applicant or owner, or by other evidence of title acceptable to the commission;
(h) 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 that a purchaser will be required to agree to or sign;
(i) Copies of the instruments by which the interest in the subdivided lands was acquired and a statement of any lien or encumbrance upon the title and copies of the instruments creating the lien or encumbrance, if any, with data as to recording;
(j) If there is a lien or encumbrance affecting more than one (1) lot, parcel, unit or interest, a statement of the consequences for a purchaser of failure to discharge the lien or encumbrance and the steps, if any, taken to protect the purchaser in case of this eventuality;
(k) Copies of instruments creating easements, restrictions or other encumbrances affecting the subdivided lands;
(l) A statement of the zoning and other governmental regulations affecting the use of the subdivided lands and also of any existing tax and existing or proposed special taxes or assessments that affect the subdivided lands;
(m) A statement of the existing provisions for legal and physical access or, if none exists, a statement to that effect; a statement of the existing or proposed provisions for sewage disposal, water and other public utilities in the subdivision; a statement of the improvements to be installed, the schedule for their completion and a statement as to the provisions for improvement maintenance;
(n) A narrative description of the promotional plan for the disposition of the subdivided lands, including the range of selling prices or rents at which it is proposed to dispose of the lots in the subdivision, together with copies of all advertising material that has been prepared for public distribution by any means of communication;
(o) A copy of its articles of incorporation, with all amendments thereto, if the subdivider is a corporation; copies of all instruments by which the trust is created or declared, if the subdivider is a trust; copies of its articles of partnership or association and all other papers pertaining to its organization, if the subdivider is a partnership, unincorporated association or any other legal or commercial entity; and if the purported holder of legal title is a person other than the subdivider, copies of the above documents for such person;
(p) The proposed public offering statement;
(q) Such current financial statements, certified or otherwise, as the commission may require; and
(r) Such other information and such other documents and certifications as the commission may require as being reasonably necessary or appropriate for the protection of purchasers.
(2) 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.
(3) The subdivider shall immediately report to the commission any material changes in the information contained in an application for registration.
(4) As a condition precedent to the registration of any subdivided lands, the commission shall require that the subdivider file a bond executed to the state of Idaho for the protection of any person and conditioned for the faithful compliance by the subdivider, his agents and his employees with all of the provisions of this chapter and with all rules and orders made pursuant thereto and for the faithful performance and payment of all obligations of the subdivider, his agents and his employees in connection with the registration, including any order to pay the costs and attorney’s fees incurred by the commission or by any other agency of this state, in an administrative or judicial proceeding to enforce the provisions of this chapter or the provisions of chapter 6, title 48, Idaho Code. The bond shall be of such type and in such form as the commission shall deem necessary to comply with the provisions of this subsection and shall be in the amount of one hundred thousand dollars ($100,000). Any such bond shall have as surety thereon a surety company authorized to do business in this state. Such bond shall remain in effect for one (1) calendar year after the earlier to occur of the following:
(a) The subdivision is no longer required to be registered pursuant to this chapter;
(b) The subdivider elects to discontinue offering for disposition interests in the subdivision and therefor elects not to renew the registration of the subdivision pursuant to this chapter;
(c) The provisions of this chapter no longer require the subdivider to post any bond; or
(d) The subdivider deposits sufficient funds in an approved escrow account or trust fund in lieu of the bond; provided, the bond shall continue to insure any covered claim filed against the subdivider, and of which the commission received written notice during the time the bond was in effect and until the claim has been finally resolved, including any appeal process.
(5) In lieu of filing a bond, the commission may accept funds deposited by the subdivider into an escrow depository acceptable to the commission or into a trust account acceptable to the commission. The deposited funds shall be maintained for the same purposes and upon the same terms and conditions as set forth in subsection (4) of this section.
[55-1806, added 1972, ch. 276, sec. 6, p. 667; am. 2010, ch. 214, sec. 7, p. 470.]