32-2181. Notice to commissioner of intention to
subdivide lands; unlawful acting in concert; exceptions; deed
restrictions; definition
(L10, Ch. 244, sec. 18. Eff. 10/1/11)
A. Before offering subdivided lands for sale or lease, the subdivider shall notify
the commissioner in writing of the subdivider's intention. The notice shall contain:
1. The name and address of the owner. If the holder of any ownership interest in
the land is other than an individual, such as a corporation, partnership or trust, a
statement naming the type of legal entity and listing the interest and the extent of any
interest of each principal in the entity. For the purposes of this section, "principal"
means any person or entity having a ten per cent or more financial interest or, if the
legal entity is a trust, each beneficiary of the trust holding a ten per cent or more
beneficial interest.
2. The name and address of the subdivider.
3. The legal description and area of the land.
4. A true statement of the condition of the title to the land, including all
encumbrances on the land, and a statement of the provisions agreed to by the holder of
any blanket encumbrance enabling a purchaser to acquire title to a lot or parcel free of
the lien of the blanket encumbrance on completion of all payments and performance of all
of the terms and provisions required to be made or performed by the purchaser under the
real estate sales contract by which the purchaser has acquired the lot or parcel. The
subdivider shall file copies of documents acceptable to the department containing these
provisions with the commissioner before the sale of any subdivision lot or parcel subject
to a blanket encumbrance.
5. The terms and conditions on which it is intended to dispose of the land,
together with copies of any real estate sales contract, conveyance, lease, assignment or
other instrument intended to be used, and any other information the owner or the owner's
agent or subdivider desires to present.
6. A map of the subdivision that has been filed in the office of the county
recorder in the county in which the subdivision is located.
7. A brief but comprehensive statement describing the land on and the locality in
which the subdivision is located.
8. A statement of the provisions that have been made for permanent access and
provisions, if any, for health department approved sewage and solid waste collection and
disposal and public utilities in the proposed subdivision, including water, electricity,
gas and telephone facilities.
9. A statement as to the location of the nearest public common and high schools
available for the attendance of school age pupils residing on the subdivision property.
10. A statement of the use or uses for which the proposed subdivision will be
offered.
11. A statement of the provisions, if any, limiting the use or occupancy of the
parcels in the subdivision, together with copies of any restrictive covenants affecting
all or part of the subdivision.
12. The name and business address of the principal broker selling or leasing, within
this state, lots or parcels in the subdivision.
13. A true statement of the approximate amount of indebtedness that is a lien on the
subdivision or any part of the subdivision and that was incurred to pay for the
construction of any on-site or off-site improvement, or any community or recreational
facility.
14. A true statement or reasonable estimate, if applicable, of the amount of any
indebtedness that has been or is proposed to be incurred by an existing or proposed
special district, entity, taxing area or assessment district, within the boundaries of
which the subdivision, or any part of the subdivision, is located, and that is to pay for
the construction or installation of any improvement or to furnish community or
recreational facilities to the subdivision, and which amounts are to be obtained by ad
valorem tax or assessment, or by a special assessment or tax upon the subdivision or any
part of the subdivision.
15. A true statement as to the approximate amount of annual taxes, special
assessments or fees to be paid by the buyer for the proposed annual maintenance of common
facilities in the subdivision.
16. A statement of the provisions for easements for permanent access for irrigation
water where applicable.
17. A true statement of assurances for the completion of off-site improvements, such
as roads, utilities, community or recreational facilities and other improvements to be
included in the offering or represented as being in the offering, and approval of the
offering by the political subdivision with authority. This statement shall include a
trust agreement or any other evidence of assurances for delivery of the improvements and
a statement of the provisions, if any, for the continued maintenance of the improvements.
18. A true statement of the nature of any improvements to be installed by the
subdivider, the estimated schedule for completion and the estimated costs related to the
improvements that will be borne by purchasers of lots in the subdivision.
19. A true statement of the availability of sewage disposal facilities and other
public utilities, including water, electricity, gas and telephone facilities in the
subdivision, the estimated schedule for their installation, and the estimated costs
related to the facilities and utilities that will be borne by purchasers of lots in the
subdivision.
20. A true statement as to whether all or any portion of the subdivision is located
in an open range or area in which livestock may roam at large under the laws of this
state and what provisions, if any, have been made for the fencing of the subdivision to
preclude livestock from roaming within the subdivided lands.
21. If the subdivider is a subsidiary corporation, a true statement identifying the
parent corporation and any of the following in which the parent or any of its
subsidiaries is or has been involved within the past five years:
(a) Any subdivision in this state.
(b) Any subdivision, wherever located, for which registration is required pursuant
to the federal interstate land sales full disclosure act.
(c) Any subdivision, wherever located, for which registration would have been
required pursuant to the federal interstate land sales full disclosure act but for the
exemption for subdivisions whose lots are all twenty acres or more in size.
22. A true statement identifying all other subdivisions, designated in paragraph 21
of this subsection, in which any of the following is or, within the last five years, has
been directly or indirectly involved:
(a) The holder of any ownership interest in the land.
(b) The subdivider.
(c) Any principal or officer in the holder or subdivider.
23. A true statement as to whether all or any portion of the subdivision is located
in territory in the vicinity of a military airport or ancillary military facility as
defined in section 28-8461, in territory in the vicinity of a public airport as defined
in section 28-8486, on or after July 1, 2001, in a high noise or accident potential zone
as defined in section 28-8461 or on or after July 1 of the year in which the subdivision
becomes located in a high noise or accident potential zone. The statement required
pursuant to this paragraph does not require the amendment or refiling of any notice filed
before July 1, 2001 or before July 1 of the year in which the subdivision becomes located
in a high noise or accident potential zone.
24. If the subdivision is a conversion from multifamily rental to condominiums as
defined in section 33-1202, a true statement as to the following:
(a) That the property is a conversion from multifamily rental to condominiums.
(b) The date original construction was completed.
25. Other information and documents and certifications as the commissioner may
reasonably require provided that the subdivider shall not be required to disclose any
critical infrastructure information as defined in section 41-1801 or any information
contained in a report issued pursuant to section 41-4273.
B. The commissioner, on application, may grant a subdivider of lots or parcels
within a subdivision for which a public report was previously issued by the commissioner
an exemption from all or part of the notification requirements of subsection A of this
section. The subdivider shall file a statement with the commissioner indicating the
change of ownership in the lots or parcels together with any material changes occurring
subsequent to the original approval of the subdivision within which the lots or parcels
are located. The statement shall further refer to the original approval by the
commissioner.
C. If the subdivision is within an active management area, as defined in section
45-402, the subdivider shall accompany the notice with a certificate of assured water
supply issued by the director of water resources along with proof that all applicable
fees have been paid pursuant to sections 48-3772 and 48-3774.01, unless the subdivider
has obtained a written commitment of water service for the subdivision from a city, town
or private water company designated as having an assured water supply by the director of
water resources pursuant to section 45-576 or is exempt from the requirement pursuant to
section 45-576. If the subdivider has submitted a certificate of assured water supply to
a city, town or county prior to approval of the plat by the city, town or county and this
has been noted on the face of the plat, the submission constitutes compliance with this
subsection if the subdivider provides proof to the commissioner that all applicable fees
have been paid pursuant to sections 48-3772 and 48-3774.01.
D. It is unlawful for a person or group of persons acting in concert to attempt to
avoid this article by acting in concert to divide a parcel of land or sell subdivision
lots by using a series of owners or conveyances or by any other method that ultimately
results in the division of the lands into a subdivision or the sale of subdivided land.
The plan or offering is subject to this article. Unlawful acting in concert pursuant to
this subsection with respect to the sale or lease of subdivision lots requires proof that
the real estate licensee or other licensed professional knew or with the exercise of
reasonable diligence should have known that property which the licensee listed or for
which the licensee acted in any capacity as agent was subdivided land subject to this
article.
E. A creation of six or more lots, parcels or fractional interests in improved or
unimproved land, lots or parcels of any size is subject to this article except when:
1. Each of the lots, parcels or fractional interests represents, on a partition
basis, thirty-six acres or more in area of land located in this state, including to the
centerline of dedicated roads or easements, if any, contiguous to the land in which the
interests are held.
2. The lots, parcels or fractional interests are the result of a foreclosure sale,
the exercise by a trustee under a deed of trust of a power of sale or the grant of a deed
in lieu of foreclosure. This paragraph does not allow circumvention of the requirements
of this article.
3. The lots, parcels or fractional interests are created by a valid order or decree
of a court pursuant to and through compliance with title 12, chapter 8, article 7 or by
operation of law. This paragraph does not allow circumvention of the requirements of
this article.
4. The lots, parcels or fractional interests consist of interests in any oil, gas
or mineral lease, permit, claim or right therein and such interests are regulated as
securities by the United States or by this state.
5. The lots, parcels or fractional interests are registered as securities under the
laws of the United States or the laws of this state or are exempt transactions under
section 44-1844, 44-1845 or 44-1846.
6. The commissioner by special order exempts offerings or dispositions of any lots,
parcels or fractional interests from compliance with this article on written petition and
on a showing satisfactory to the commissioner that compliance is not essential to the
public interest or for the protection of buyers.
F. In areas outside of active management areas established pursuant to title 45,
chapter 2, article 2:
1. If the subdivision is located in a county that has adopted the provision
authorized by section 11-823, subsection A, or in a city or town that has enacted an
ordinance pursuant to section 9-463.01, subsection O, the subdivider shall accompany the
notice with a report issued by the director of water resources pursuant to section 45-108
stating that the subdivision has an adequate water supply, unless one of the following
applies:
(a) The subdivider submitted the report to a city, town or county before approval
of the plat by the city, town or county and this has been noted on the face of the plat.
(b) The subdivider has obtained a written commitment of water service for the
subdivision from a city, town or private water company designated as having an adequate
water supply by the director of water resources pursuant to section 45-108.
(c) The plat was approved pursuant to an exemption authorized by section 9-463.01,
subsection K, pursuant to an exemption authorized by section 11-823, subsection B,
paragraph 1, pursuant to an exemption granted by the director of water resources under
section 45-108.02 and the exemption has not expired or pursuant to an exemption granted
by the director under section 45-108.03. If the plat was approved pursuant to an
authorized exemption, the state real estate commissioner shall require that all
promotional material and contracts for the sale of lots in the subdivision adequately
display the following:
(i) The director of water resources' report or the developer's brief summary of the
report as approved by the commissioner on the proposed water supply for the subdivision.
(ii) A statement describing the exemption under which the subdivision was approved,
including the specific conditions of the exemption that were met. If the plat was
approved by the legislative body of a city or town pursuant to an exemption authorized by
section 9-463.01, subsection K or by the board of supervisors of a county pursuant to an
exemption authorized by section 11-823, subsection B, paragraph 1, the subdivider shall
record the document required by section 33-406.
(d) The subdivision received final plat approval from the city, town or county
before the requirement for an adequate water supply became effective in the city, town or
county, and there have been no material changes to the plat since the final plat
approval. If changes were made to the plat after the final plat approval, the director of
water resources shall determine whether the changes are material pursuant to the rules
adopted by the director to implement section 45-108. If this subdivision applies, the
state real estate commissioner shall require that all promotional materials and contracts
for the sale of lots in the subdivision adequately display the director of water
resources' report or the developer's brief summary of the report as approved by the
commissioner on the proposed water supply for the subdivision.
2. If the subdivision is not located in a county that has adopted the provision
authorized by section 11-823, subsection A or in a city or town that has enacted an
ordinance pursuant to section 9-463.01, subsection O, and if the director of water
resources, pursuant to section 45-108, reports an inadequate on-site supply of water to
meet the needs projected by the developer or if no water is available, the state real
estate commissioner shall require that all promotional material and contracts for the
sale of lots in subdivisions approved by the commissioner adequately display the director
of water resources' report or the developer's brief summary of the report as approved by
the commissioner on the proposed water supply for the subdivision.
G. The commissioner may require the subdivider to supplement the notice of
intention to subdivide lands and may require the filing of periodic reports to update the
information contained in the original notice of intention to subdivide lands.
H. The commissioner may authorize the subdivider to file as the notice of intention
to subdivide lands, in lieu of some or all of the requirements of subsection A of this
section, a copy of the statement of record filed with respect to the subdivision pursuant
to the federal interstate land sales full disclosure act if the statement complies with
the requirements of the act and the regulations pertinent to the act.
I. Neither a real estate sales contract, conveyance, lease, assignment or other
instrument to transfer any interest in subdivided land nor any covenant or restriction
affecting real property shall contain any provision limiting the right of any party to
appear or testify in support of or opposition to zoning changes, building permits or any
other official acts affecting real property before a governmental body or official
considering zoning changes, building permits or any other official acts affecting real
property, whether the property is located within or outside of the boundaries of the
subdivision. All contractual provisions that conflict with this subsection are declared
to be contrary to public policy. Nothing contained in this subsection shall prohibit
private restrictions on the use of any real property.
J. Before offering subdivided lands for lease or sale, the subdivider who makes any
promises through any form of advertising media that the subdivided lands will be
exclusively a retirement community or one that is limited to the residency of adults or
senior citizens shall include the promises in the deed restrictions affecting any
interest in real property within the subdivided lands.
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