N.Y. Real Property Law § 337-b: Offering statement; contents; prohibitions

§ 337-b. Offering statement; contents; prohibitions. 1. Contents. The

offering statement shall contain (a) the names, addresses, business

background of the subdivider, and if such subdivider is a partnership or

corporation, the names, addresses and business background of each of the

partners, officers and principal stockholders, the nature of their

fiduciary relationship and their financial relationship, past, present

and future, to the subdivider; (b) a duly certified financial statement

of the assets and liabilities of the subdivider, as of a date not more

than three months prior to the date of the filing, in such detail as the

department may require; (c) a description of the subdivision and each

unit or lot into which it has or will be divided, in such detail as the

department may require; (d) the material terms of any encumbrances,

liens and restrictions upon the subdivision and each such unit or lot;

(e) data and information concerning improvements, including streets,

water supply and sewerage disposal facilities, in existence on the

subdivision, and the estimated cost, date of completion and

responsibility for construction of improvements to be made which are

referred to in connection with the sale or lease or offering for sale or

lease of the subdivision or any unit or lot thereon; (f) each of the

terms and conditions under which each such unit or lot is offered for

sale; and (g) such additional data and information as the department may

require as being necessary or appropriate in the public interest or for

the protection of purchasers or lessees.

2. There may be omitted from any offering statement any of the

information required under subdivision one of this section which the

department may by rules and regulations designate as not being necessary

or appropriate in the public interest or for the protection of

purchasers.

3. Limitations. No offer to sell or lease subdivided lands by means of

advertisements in periodicals or newspapers, or on television or radio,

or by motion picture or otherwise shall be made unless each such

advertisement contains reference to the fact that an offering statement

has been filed with the department and that a copy of such statement is

available, upon request, from the subdivider.

4. Except as provided in subdivision three of this section, no offer

of sale or lease of subdivided lands shall be made unless such offer is

accompanied by a copy of the current offering statement filed pursuant

to this article.

5. The first page of the offering statement and the face of all

advertising and literature employed in the sale or lease or offer for

sale or lease of subdivided lands shall contain a statement in easily

readable print, that the filing of the verified statement and offering

statement with the department of state does not constitute approval of

the sale or lease or offer for sale or lease by the department of state

or any officer thereof, or that the department of state has in any way

passed upon the merits of such offering.

6. No sale or lease of subdivided lands shall be made unless

accompanied or preceded by the delivery to the prospective purchaser of

an offering statement complying with the provisions of this section.

7. No change or amendment of an offering statement shall be made

unless a copy of such change or amendment has first been filed with the

department.

8. The subdivider, within thirty days after the anniversary date of

the filing of an offering statement, shall file with the department of

state a new current and up-to-date offering statement setting forth

therein all changes which have taken place during the preceding year

with respect to any and all data and information required to be set

forth in such offering statement. Only a current offering statement

shall be used to sell or lease or offer to sell or lease any of the

subdivided lands.

9. The offering statement shall include the following statement in

easily readable capital letters of not less than nine-point type: "THE

OFFEROR HAS FILED ADDITIONAL INFORMATION ON THIS LAND OFFERING WITH THE

DEPARTMENT OF STATE PURSUANT TO SECTION 337-A OF THE REAL PROPERTY LAW.

THIS INFORMATION INCLUDES A DESCRIPTION AND MAPS OF THE PROPERTIES BEING

OFFERED; A CERTIFICATE STATING IN DETAIL ALL LIENS, ENCUMBRANCES OR

CLOUDS UPON THE TITLE TO THE LAND; AND STATEMENTS OF ANY PRIOR CRIMINAL

CONVICTIONS OF THE PRINCIPALS MAKING THIS OFFERING WHICH INVOLVED THE

SALE OR OFFERING FOR SALE OF SUBDIVIDED LANDS. INFORMATION FILED

PURSUANT TO SECTION 337-A OF THE REAL PROPERTY LAW IS AVAILABLE PURSUANT

TO THE FREEDOM OF INFORMATION LAW FROM THE DEPARTMENT OF STATE AT THE

FOLLOWING ADDRESS: THE DEPARTMENT OF STATE, SUBDIVIDED LANDS SECTION,

ALBANY, NEW YORK 12231-0001."