[§514B-85]  Preregistration solicitation. 
(a)  Prior to the registration of the project by the developer with the
commission, the issuance of an effective date for the developer's public report
by the commission, and the delivery of the developer's public report to
prospective purchasers, and subject to the limitations set forth in subsection
(b), the developer may solicit prospective purchasers and enter into nonbinding
preregistration agreements with the prospective purchasers with respect to
units in the project.  As used in this section, "solicit" means to
advertise, to induce, or to attempt in whatever manner to encourage a person to
acquire a unit.



(b)  The solicitation activities authorized
under subsection (a) shall be subject to the following limitations:



(1)  Prior to registration of the project with the
commission and the issuance of an effective date for the developer's public
report, the developer shall not collect any moneys from prospective purchasers
or anyone on behalf of prospective purchasers, whether or not the moneys are to
be placed in an escrow account, or whether or not the moneys would be
refundable at the request of the prospective purchaser; and



(2)  The developer shall not require or request that a
prospective purchaser execute any document other than a nonbinding
preregistration agreement.  The preregistration agreement may, but need not,
specify the unit number of a unit in the project to be reserved and may, but
need not, include a price for the unit.  The preregistration agreement shall
not incorporate the terms and provisions of the sales contract for the unit
and, by its terms, shall not become a sales contract.  Notwithstanding anything
contained in the preregistration agreement to the contrary, the preregistration
agreement may be canceled at any time by either the developer or the
prospective purchaser by written notice to the other.  The commission may
prepare a form of preregistration agreement for use pursuant to this section,
and use of the commission-prepared form shall be deemed to satisfy the
requirements of the preregistration agreement as provided in this section. [L
2005, c 93, pt of §4]