§ 34-41-5.03 - Application for registration – Approval of uncompleted units.
SECTION 34-41-5.03
§ 34-41-5.03 Application for registration– Approval of uncompleted units. – (a) For the purposes of this section, "substantially completed" means that allstructural components and mechanical systems of all buildings constituting orcontaining any time-share units or portions thereof are finished in accordancewith the plans, as evidenced by a recorded certificate of completion executedby an independent registered engineer, surveyor, or architect.
(b) An application for registration must contain theinformation and be accompanied by any reasonable fees required by the agency. Adeveloper shall promptly file amendments to report any actual or expectedmaterial change in any document or information contained in his or herapplication.
(c) If a developer files with the agency the time-shareinstrument or proposed time-share instrument, or an amendment or proposedamendment to the time-share instrument, describing time-share units consistingin whole or in part of buildings or portions of buildings that have not beensubstantially completed, the developer shall also file with the agency:
(1) A verified statement showing all costs involved incompleting the time-share property;
(2) A verified estimate of the time of completion ofconstruction of the time-share property;
(3) Satisfactory evidence that he or she has sufficient fundsto cover all costs to complete the time-share property;
(4) A copy of the executed construction contract and anyother contracts for the completion of the time-share property;
(5) If purchasers' funds are to be utilized for theconstruction of the time-share property, the developer shall also file with theagency:
(i) Proof of a hundred percent (100%) payment and performancebond running to the developer covering the cost of construction of thetime-share property; and
(ii) An executed copy of the escrow agreement with an escrowcompany or financial institution authorized to do business within the statewhich provides:
(A) That disbursements of purchasers' funds may be made fromtime to time to pay for construction of the time-share property, architectural,engineering, finance, marketing and legal fees, and other costs for thecompletion of the time-share property in proportion to the value of the workcompleted by the contractor as certified by an independent registered architector engineer, on bills submitted and approved by the lender of constructionfunds or the escrow agent;
(B) That disbursement of the balance of purchasers' fundsremaining after completion of the time-share property may be made only afterthe escrow agent or lender receives satisfactory evidence that the period forfiling mechanics' and materialmen's liens has expired, the right to claim thoseliens has been waived, or adequate provision has been made for satisfaction ofany claimed mechanic's or materialman's lien.