§ 34-41-4.02 - Liability for public offering statement requirements.
SECTION 34-41-4.02
§ 34-41-4.02 Liability for public offeringstatement requirements. – (a) Except as provided in subsection (b), a developer, prior to the offering ofany interest in a unit to the public, shall prepare a public offering statementconforming to the requirements of §§ 34-41-4.03, 34-41-4.04 and34-41-4.05.
(b) A developer may transfer responsibility for preparationof all or a part of the public offering statement to a successor developer(§ 34-41-3.04) or to a person in the business of selling real estate whointends to offer time shares in the time-share property for his or her ownaccount. In the event of any such transfer, the transferor shall provide thetransferee with any information necessary to enable the transferee to fulfillthe requirements of subsection (a).
(c) Any developer or other person in the business of sellingreal estate who offers a time share for his or her own account to a purchasershall deliver a public offering statement in the manner prescribed in §34-41-4.06(a). The person who prepared all or a part of the public offeringstatement is liable under §§ 34-41-4.06, 34-41-4.15, 34-41-5.05 and34-41-5.06 for any false or misleading statement set forth therein or for anyomission of material fact therefrom with respect to that portion of the publicoffering statement which he or she prepared. If a developer did not prepare anypart of a public offering statement that he or she delivers, he or she is notliable for any false or misleading statement set forth therein or for anyomission of material fact therefrom unless he or she had actual knowledge ofthe statement or omission or, in the exercise of reasonable care, should haveknown of the statement or omission.
(d) If a time-share property is part of any other real estateregime in connection with the sale of which the delivery of a public offeringstatement is required under the laws of this state, a single public offeringstatement conforming to the requirements of §§ 34-41-4.03, 34-41-4.04and 34-41-4.05 as those requirements relate to all real estate regimes in whichthe time-share property is located, and to any other requirements imposed underthe laws of this state, may be prepared and delivered in lieu of providing two(2) or more public offering statements.