(1) Every person who is required to register as a developer under this part 5 shall submit to the commission an application that contains the information described in subsections (2) and (3) of this section. If the information is not submitted, the commission may deny the application for registration. If a developer is currently regulated in another state that has registration requirements substantially equivalent to the requirements of this part 5 or that provide substantially comparable protection to a purchaser, the commission may accept proof of the registration along with the developer's disclosure or equivalent statement from the other state in full or partial satisfaction of the information required by this section. In addition, the applicant shall be under a continuing obligation to notify the commission within ten days of any change in the information so submitted, and a failure to do so shall be a cause for disciplinary action. (2) (a) Registration information concerning the developer shall include: (I) The principal office of the applicant wherever situate; (II) The location of the principal office and the branch offices of the applicant in this state; (III) The names and residence and business addresses of all natural persons who have a twenty-four percent or greater financial or ultimate beneficial interest in the business of the developer, either directly or indirectly, as principal, manager, member, partner, officer, director, or stockholder, specifying each such person's capacity, title, and percentage of ownership. If no natural person has a twenty-four percent or greater financial or beneficial interest in the business of the developer, the information required in this subsection (2)(a)(III) shall be submitted regarding the natural person having the largest single financial or beneficial interest. (IV) The length of time and the locations where the applicant has been engaged in the business of real estate sales or development; (V) Any felony of which the applicant has been convicted within the preceding ten years. In determining whether a certificate of registration shall be issued to an applicant who has been convicted of a felony within such period of time, the commission shall be governed by the provisions of section 24-5-101. (VI) The states in which the applicant has had a license or registration similar to the developer's registration in this state granted, refused, suspended, or revoked or is currently the subject of an investigation or charges that could result in refusal, suspension, or revocation; (VII) Whether the developer or any other person financially interested in the business of the developer as principal, partner, officer, director, or stockholder has engaged in any activity that would constitute a violation of this part 5. (b) If the applicant is a corporate developer, a copy of the certificate of authority to do business in this state or a certificate of incorporation issued by the secretary of state shall accompany the application. (3) Registration information concerning the subdivision shall include: (a) The location of each subdivision from which sales are intended to be made; (b) The name of each subdivision and the trade, corporate, or partnership name used by the developer; (c) Evidence or certification that each subdivision offered for sale or lease is registered or will be registered in accordance with state or local requirements of the state in which each subdivision is located; (d) Copies of documents evidencing the title or other interest in the subdivision; (e) If there is a blanket encumbrance upon the title of the subdivision or any other ownership, leasehold, or contractual interest that could defeat all possessory or ownership rights of a purchaser, a copy of the instruments creating the liens, encumbrances, or interests, with dates as to the recording, along with documentary evidence that any beneficiary, mortgagee, or trustee of a deed of trust or any other holder of the ownership, leasehold, or contractual interest will release any lot or time share from the blanket encumbrance or has subordinated its interest in the subdivision to the interest of any purchaser or has established any other arrangement acceptable to the commission that protects the rights of the purchaser; (f) A statement that standard commission-approved forms will be used for contracts of sale, notes, deeds, and other legal documents used to effectuate the sale or lease of the subdivision or any part thereof, unless the forms to be used were prepared by an attorney representing the developer; (g) A true statement by the developer that, in any conveyance by means of an installment contract, the purchaser shall be advised to record the contract with the proper authorities in the jurisdiction in which the subdivision is located. In no event shall any developer specifically prohibit the recording of the installment contract. (h) A true statement by the developer of the provisions for and availability of legal access, sewage disposal, and public utilities, including water, electricity, gas, and telephone facilities, in the subdivision offered for sale or lease, including whether such are to be a developer or purchaser expense; (i) A true statement as to whether or not a survey of each lot, site, or tract offered for sale or lease from the subdivision has been made and whether survey monuments are in place; (j) A true statement by the developer as to whether or not a common interest community is to be or has been created within the subdivision and whether or not the common interest community is or will be a small cooperative or small and limited expense planned community created pursuant to section 38-33.3-116; (k) A true statement by the developer concerning the existence of any common interest community association, including whether the developer controls funds in the association. (4) The commission may disapprove the form of the documents submitted pursuant to subsection (3)(f) of this section and may deny an application for registration until such time as the applicant submits the documents in a form that is satisfactory to the commission. (5) Each registration shall be accompanied by fees established pursuant to section 12-10- 215.
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