Subchapter G. PROMOTIONAL LAND SALES

§ 35.371. General requirements.

 (a)  A broker, developer or subdivider referred to in this subchapter as ‘‘applicant,’’ who proposes to engage in sales of a promotional nature in this Commonwealth of property located outside of this Commonwealth shall submit to the Commission, for its approval before doing so, full particulars regarding the property and proposed terms of sale, and they and their salesmen shall comply with rules and regulations, restrictions and conditions pertaining thereto as the Commission may impose. Expenses reasonably incurred by the Commission in investigating and inspecting the property and proposed sale thereof in this Commonwealth shall be borne by the applicant. No broker, developer or salesman may refer to the Commission or to an official or employe of the Commission in selling, offering for sale or advertising, or otherwise promoting the sale, mortgage or lease of the property, nor make representation that the property has been inspected or approved or otherwise passed upon by the Commission, or by a State official, department or employe.

 (b)  An applicant approved to engage in sales set forth in this chapter shall notify the Commission at least 10 days in advance of the date, time and place of efforts to sell or advertise through parties or reception or other group media.

   The provisions of this §  35.371 issued under the Real Estate Licensing and Registration Act (63 P. S. § §  455.101—455.902).

   The provisions of this §  35.371 adopted February 24, 1989, effective February 25, 1989, 19 Pa.B. 781.

 (a)  A nonresident applicant shall also file an irrevocable consent that suits and actions may be commenced against the applicant in the proper court of a county of this Commonwealth in which a cause of action may arise, or in which plaintiff may reside, by the service of a process or pleadings authorized by the laws of the Commonwealth on the Commission in Harrisburg, Pennsylvania. The consent shall stipulate and agree that the service of process or pleadings on the Commission shall be taken and held in all courts to be as valid and binding as if service had been made upon the applicant personally within this Commonwealth.

 (b)  If process or pleadings are served upon the Commission, they shall be by duplicate copy, one of which shall be filed in the office of the Commission and the other immediately forwarded by certified mail to the main office of the applicant against which the process or pleadings are directed.

   The provisions of this §  35.372 issued under the Real Estate Licensing and Registration Act (63 P. S. § §  455.101—455.902).

   The provisions of this §  35.372 adopted February 24, 1989, effective February 25, 1989, 19 Pa.B. 781.

 (a)  The Commission also requires the applicant to prepare and deliver at its own expense, to each prospective purchaser in this Commonwealth an offering statement which shall be revised annually. The offering statement shall be approved by the Commission and shall contain a detailed description, price and terms of the offer as well as financial information disclosing assets and liabilities of the applicant. The offering statement shall also inform prospective purchasers of the following:

   (1)  Tax liabilities.

   (2)  Basis for guarantees.

   (3)  Public transportation facilities.

   (4)  Terrain details.

   (5)  Climate.

   (6)  Proposed and existing improvements.

   (7)  Roads.

   (8)  Water supply.

   (9)  Public utilities.

   (10)  An objectionable condition of air, sight or terrain.

   (11)  Sewage disposal facilities.

   (12)  Recreational and community facilities.

   (13)  The distances to a nearby populated area.

 (b)  The offering statement shall also set forth on the front page in large bold face type or italics, the following statement:

   ‘‘The State Real Estate Commission’s requirements of this broker, developer or subdivider does not constitute approval of the land being offered for sale or lease. The State Real Estate Commission has not in any way passed upon the merits of such offer.’’

   The provisions of this §  35.373 issued under the Real Estate Licensing and Registration Act (63 P. S. § §  455.101—455.902).

 The following information and documents shall be furnished annually to the Commission in report form for its review and approval:

   (1)  Name of owner, including the following:

     (i)   Names and addresses of the owners or partners.

     (ii)   Lists of the officers and holders of 10% or more of total subscribed or issued stock of the corporation.

     (iii)   Copy of most recent certified audit of records including financial statements.

   (2)  Names of subsidiary organizations or companies.

   (3)  Name of development.

   (4)  Address of development.

   (5)  Addresses of administrative offices.

   (6)  Representative of the Commonwealth, including a list of the sales offices and personnel in this Commonwealth.

   (7)  Status of property, including the following:

     (i)   Owner of the land.

     (ii)   Whether land is free and clear.

     (iii)   If land is mortgaged, whether the mortgage is assignable, including the following:

       (A)   Whether individual lots can be released.

       (B)   Cost per lot.

     (iv)   Whether there are judgments against or unpaid taxes due on the land.

     (v)   Whether abstracts or title policies will be furnished.

     (vi)   Copy of type of deed used.

     (vii)   Whether deeds are issued in fee simple.

     (viii)   Whether there is additional charge for issuing a deed.

   (8)  Improvements completed, including the following:

     (i)   Paved streets.

     (ii)   Sidewalks.

     (iii)   Street lights.

     (iv)   Public utilities.

     (v)   Whether improvements are paid for.

     (vi)   Tax rates.

     (vii)   If no improvements, plans for completion.

     (viii)   If FHA approved, copy of approval.

   (9)  Whether bond has been posted with a governmental authority to guarantee completion of promised improvements, including the following:

     (i)   Specification for what purpose.

     (ii)   Amount.

     (iii)   Name of bonding company.

     (iv)   How this bond will protect the purchasers from the Commonwealth.

     (v)   Certified copy of the bonds used.

   (10)  Sewage, including the following:

     (i)   Sanitary sewers.

     (ii)   Storm sewers.

     (iii)   Whether water mains or individual wells are necessary.

     (iv)   Whether septic tanks are necessary.

     (v)   If septic tanks are necessary, whether they are authorized by appropriate government authorities.

     (vi)   Whether level of land and type of soil is suitable for septic tanks.

   (11)  Drainage, including the following:

     (i)   Whether land is dry.

     (ii)   Copy of the drainage plan of the engineer.

     (iii)   Depth of water table.

     (iv)   Depth of average well.

   (12)  Zoning restrictions, including the following:

     (i)   Copy of topographical map.

     (ii)   Copy of State Board of Health Percolation Test one hole per 5 acres where septic tanks are used.

   (13)  Advertising, including the following:

     (i)   Size of lots offered.

     (ii)   Price and terms of sale.

     (iii)   Whether these lots are large enough for building purposes that would comply with zoning requirements.

     (iv)   If and where plot is recorded.

   (14)  Location, including the following:

     (i)   Aerial photo showing exact area with at least 1 mile of bordering properties.

     (ii)   How far property is presently from the following:

       (A)   Highway.

       (B)   Incorporated town.

       (C)   Major shopping center.

       (D)   Industrial area including type and size.

       (E)   Transportation including bus and train.

       (F)   Schools—public, trade, parochial or private.

       (G)   Lighted streets.

       (H)   Type of pavement and curbs.

       (I)   Fire protection.

       (J)   Garbage and trash removal.

       (K)   Police protection.

       (L)   Airport and airlines operated therefrom.

   (15)  Current selling price of lots in adjoining area and owners of these lots.

   (16)  Financial arrangements, including the following:

     (i)   Whether the down payment will be placed in escrow and terms of release of the down payment.

     (ii)   Type of financing obtainable and percent of interest charged.

     (iii)   Closing costs, specifying for what.

     (iv)   Specific listing of carrying charges.

     (v)   Types of contracts used.

   The provisions of this §  35.374 issued under the Real Estate Licensing and Registration Act (63 P. S. § §  455.101—455.902).

 The following affidavit of consent to service of jurisdiction is exemplary of the requirements of §  35.372 (relating to nonresident requirements):

 AFFIDAVIT OF CONSENT TO SERVICE OF
JURISDICTION

 That the undersigned

 Personally appeared

   The provisions of this §  35.375 issued under the Real Estate Licensing and Registration Act (63 P. S. § §  455.101—455.902).

   The provisions of this §  35.375 adopted February 24, 1989, effective February 25, 1989, 19 Pa.B. 781.