3. Type of lots being registered. If more than one type, so designate with number of each type.

Transcription

1 DBPR 312-B ADDENDUM FOR THE FLORIDA PUBLIC OFFERING STATEMENT IS FOR INFORMATION PURPOSES ONLY This addendum is correlated with the accompanying format for purposes of providing adequate information in the compilation of an acceptable Offering Statement. The numbers in parenthesis on the format correspond to the numbers on this addendum. 1. To be used only on Offering Statements which are to be distributed as a result of long distance telephone solicitations. If the promotional plan of sale includes long distance telephone operations, two Offering Statements will be required, one for long distance telephone with all appropriate disclosures therein and one for other types of sale. The letters must be in ten point black caps. 2. The total number of lots or parcels included in the registration. 3. Type of lots being registered. If more than one type, so designate with number of each type. 4. Range of sizes from smallest to largest. 5. Section, Township and Range. 6. Plat Book Number, Page Number and County within which the lands are platted. In the event that recorded plats are too lengthy to be enumerated on the Offering Statement cover page, alternative information acceptable to the Division may be placed therein. 7. This date is the date which appears on the Official Order of Registration. It must be placed on the Offering Statement cover prior to printing. This date will never change unless the registration is followed by a consolidation, refiling, or amended order. 8. This date is not used on the original Offering Statement and provision therefore is not needed. It will be incorporated, however, on all subsequent Offering Statements that are sent in for revision. The Division will inform you as to what date should be placed here. 9. All copy which is shown on the format must be done in precisely the same manner on your finished copy. Pay particular attention to the size of type, position on the Offering Statement and whether or not the copy is underlined. Headings which are shown in all caps must appear in the same manner on your copy just as any subheadings which are in lower case type. 10. Size should include a range from the smallest to the largest expressed in square footage for parcels smaller than one acre. For parcels larger than one acre, fractional parts thereof are acceptable. 11. Mortgages on the property should be enumerated so that the purchaser is informed as to the number of outstanding mortgages. A full explanation as to the effect these mortgages have on the purchaser's rights must be set forth. The name of the mortgagee should also appear, together with the mortgagee's address. Examples: Various portions of the property are encumbered by mortgages held by the First National Bank (address) and the Happy Valley Federal Savings and Loan Association (address). Provisions in these mortgages require the release of individual lots upon payments to the lending institution of specified release amounts. In case of default, the purchaser may pay the stipulated release price directly to the mortgagee, prior to final decree in the event of foreclosure. 1

2 DBPR 312-B The property is encumbered by mortgage(s) which is/are subordinated to the rights of purchasers, in case of default by the seller, provisions of the mortgage(s) allow the purchaser to continue payment on his contract and to be assured of a release by the mortgagee at no additional cost after the contract has been paid in full. If no default occurs, the release will be obtained by the seller when the purchaser pays his contract in full. There are provisions for non-contiguous releases. 12. Any deed restrictions or covenants on the property must be submitted as part of the original registration application in recorded form. These restrictions must be referred to in this section with either a copy of the contract or reference supplied, as to the record book and page number where they may be found in the public records. In the event book and page numbers are too lengthy to be enumerated, alternative information acceptable to the Division may be placed therein. Examples: Deed restrictions have been placed on the property to assure continuity and to preserve the appropriate uses thereon. The purchaser is supplied with a copy of these restrictions when he signs his contract. These restrictions may be found in Official Record Book 327, Pages 694 through 705 of the Public Records of Leon County. 13. Any gas, oil, mineral or other rights which normally pass with the title, but will not because of reservations of prior owners, including governmental authorities, must be disclosed. The disclosure should include the percentage of these rights reserved. 14. For unimproved acreage offerings which are still under registration, disclosure is required as to whether or not there is legal and/or physical access. Unplatted subdivisions currently registered with the Division must disclose that the subdivision is unplatted and is sold as part of a Township, Section and Range. 15. If a portion or all of the lots, units, or parcels within the subdivision are in an area designated as flood prone by the Federal Insurance Administration, Department of Housing and Urban Development, then appropriate disclosure regarding minimum floor elevations, cost to the purchaser of flood insurance and availability of local financing is required. Paradise Park has been designated by Brevard County, Florida as being located in a flood prone area or designated by the Federal Insurance Administration, Department of Housing and Urban Development, Washington, D.C. as a flood prone area. Brevard County if currently participating in this Federal Flood Program which provides for the availability of federally assisted flood insurance to individual homeowners. Minimum floor elevations required in order for the homeowner to qualify for flood insurance has been established at 9 feet above mean sea level. "OR... has not been established to date." Insurance is available at a current estimated rate of $2.50 per $1,000 for a dwelling and $1.50 per $100 for contents and may be obtained from local insurance agencies. The homeowner may be required to show proof of such insurance before he can get financing for construction. 16. The drainage plan should be adequate to prevent the flooding of every lot being offered for sale. It is the policy of the Division that lots be usable for the purpose for which they are offered for sale without required undue expense on the part of the purchaser to make it so. In cases where lots would require abnormally large amounts to fill in order to make them usable, the Division may require that the developer either fill them at his expense or remove them from the registration. It is recognized, however, that some fill will be required in many cases in order to provide an appropriate building pad for the construction of a house or building. 2

3 DBPR-312-B 17. The zoning designation disclosed here must be the zoning which has been placed on the property by the applicable municipal or local government authority. Also include an explanation of what the zoning designation means. 18. If the fire department is not a bona fide organized department or if they cannot obligate themselves in writing to answer calls for structural fires, or if they are an excessive distance from the subdivision, then appropriate disclosure is required under this section and possibly in the red letter area on page 3, front and back of the Offering Statement. 19. This disclosure is very important in that it will set forth the present status of promised improvements as well as completion dates. The paragraph will probably need updating each time the Offering Statement is revised in order to reflect the progress of development. Special attention should be given to those promised improvements which are partially complete so that accurate completion percentages will be set forth. Promised improvements consist of: paved streets, drainage, storm sewers, central sewer and water systems. Of these improvements, the streets are approxi-mately 50% complete to date and will be totally completed by January 30, The drainage system is 100% complete. Construction on the central sewer and water systems will begin on June 1, 1977 and will be complete on or before December 30, If water supply is by central water system then its current completion status should be set forth under existing proposed and completion date. The cost to the purchaser for hook-up to the system or any other charges should be included under this subheading. If water supply is by means of individual well and pump, then the current cost of the installation of this equipment must be set forth. If the cost is $500 or more, then disclosure in the red letter area on the front and back of the Offering Statement is necessary. If any other equipment is necessary in order to supply potable water to the purchaser, such as water softeners or conditioners, this also must be disclosed as to type of equipment needed, its cost and where it can be obtained. 21. If sewage is by central sewer system, then the current completion status should be covered under existing proposed and completion date. Any hook-up fees or other charges which will be borne by the purchaser must be set forth. If sewage disposal is by septic tank and drain field, the cost of this equipment must be set forth. If the cost is $500 or more, then disclosure in the red letter area on the Offering Statement is necessary. If there are any restrictions whatsoever placed on the use of the proposed system, then appropriate disclosure is required. Examples: Sewage disposal is by means of septic tank and drain field to be installed at the purchaser's expense. cost of such installation is $1,200. County ordinances require that a septic tank permit be obtained. Although the county has indicated that septic tanks are generally acceptable, each lot will be considered for a permit on its own merits and there is no guarantee that each lot will be issued a permit. When the population density of this subdivision reaches two dwellings per acre, septic tanks will no longer be permitted and a central sewage system will be installed. The purchaser shall pay his pro rata share of this system and will be required to hook into the system upon its completion. The developer will install a central sewage system which will be connected to the city system. All purchasers must tap into this system. Present tap-in fee is estimated at $700 per dwelling. A monthly utility charge will be levied by the city. The developer will install a central sewage system which will be connected to an on site sewage treatment plant. This plant has been approved by the county and will adequately serve the subdivision based upon projected density. Present tap-in fee is estimated at $500 and a monthly utility charge of $2.00 will be levied by the developer. 3

4 DBPR-312-b 22. As shown in the format, the heading "Drainage" is to be in caps. Any unusual conditions which may cost the purchaser, such as the construction of swales over drainage ditches, must be set forth along with approximate costs. 23. Proposed canals or lakes must be granted permits by appropriate governmental agencies prior to their construction. These permits must be granted prior to an order of registration being issued by this Division. Full disclosure as to the intended uses of the canal and whether they are navigable is required. 24. Any recreational facilities promised by the subdivider must be backed by assurances with the Division. Completion status, as with all promised improvements, must be set forth under existing proposed and completed date. In addition. a full explanation of the type of facilities, and whether or not the cost of the lot includes the use of the facilities must be disclosed. 25. Chapter 498, Florida Statutes, requires that the developer provide for perpetual maintenance of all roads in a manner acceptable to the Division. Provisions considered acceptable to the Division include the following: A. The developer turns over maintenance of all roads to the county or municipal government. B. The developer turns over maintenance of all roads to a Property Owners Association which has been duly organized and formed at the time of registration. Under Alternative A, the developer must maintain the roads for the interim period between completion and county acceptance. After acceptance, however, maintenance cost is included in the property taxes levied by the county. Consequently, a disclosure as to the above effect is in order. All roads will be maintained by the developer until the county accepts them for maintenance, after which the cost of such maintenance will be borne by the property owner through taxes levied by the appropriate governmental authority. The Property Owners Association is responsible for the maintenance of all roads in the subdivision. The purchaser will pay his pro rata cost for such maintenance to the association which cost is currently estimated at $30 per year per lot. The developer will participate in these assessments on a pro rata basis as owner of all unsold lots. Disclosure in the Offering Statement regarding maintenance by a property owners association should reveal the following: A. When the purchaser becomes a member of the Association. B. When the Association becomes viable. (i.e., when the purchasers obtain control). C. The amount of assessments levied, when the purchaser is expected to pay them and what happens if the purchaser fails to pay assessments (i.e., lien on the lot, foreclosure or cancellation of the contract, etc.) D. That the developer will participate in assessments on a pro rata basis as owner of all unsold lots. NOTE: After the Articles of Incorporation and By-Laws have been found acceptable to the Division, they must be recorded in the public records. Developer must provide purchaser with a copy or disclosure where documents may be found. 26. Some telephone and electric companies will not divulge their charges and deposits but reserve the right to charge each user on the basis of his pas performance. If such is the case, then appropriate disclosure is in order. Otherwise, installation and connection charges and assessments must be set forth. 4

5 DBPR-312-B 27. If there are homes and/or residents on contiguous portions of the subdivision which have been registered, then disclosure to that effect is permissible so long as there is also disclosure as to present development and occupancy for this particular offering. This heading is subject to change as development progresses. There are no homes in the subdivision or residents currently residing on the property covered by this offering. There are, however, fifty homes and two hundred residents occupying contiguous property which has been previously offered for sale. 28. The developer must also provide notice of any local or state land use regulation or plan and notice of any moratorium, the duration of which is 180 days or more, imposed by executive order, law, ordinance, regulation or proclamation adopted by any governmental body or agency when the moratorium prohibits or restricts the development or improvement of property which would otherwise not be prohibited or restricted by applicable law, and the effect thereof on the proposed use of the property. The Florida Keys Aqueduct Authority periodically imposes moratoriums on the availability of fresh water. In such cases, usability of the lot is restricted unless alternative sources of water acceptable to the County Health Department can be found. 29. Developer may use either or both types of conveyances. In whichever he uses, however, he must disclose when title will pass to the purchaser, the cost of such passing of title and who is responsible for these costs. If an Agreement for Deed is used, the developer must also disclose to the purchaser that such Agreement for Deed may be recorded in the public records of the county within which the subdivision is located, along with a statement as to what effect the recording of the agreement will have in providing the purchaser with legal protection. Standard wording currently required by the Division is as follows: 30. Refund privileges: The Agreement for Deed is in recordable form which enables the purchaser to record his agreement at his expense in the public records at the expiration of any refund privilege contained in the contract or Offering Statement. Such recording may affect the purchaser's rights under the contract. The purchaser is urged to consult his attorney to ascertain his rights and obligations in the event of such recording. If the subdivider wishes to offer a voluntary refund privilege to the purchaser, requirements as to the escrowing of funds must first be met. For purposes of disclosure, the length of time over which the privilege will extend and any conditions imposed on the purchaser must be clearly set forth. Instructions to the purchaser as to how he may get a refund must also be disclosed. Purchaser is entitled to a 60 day refund from the date he signs the contract provided the contract is not in default. Purchaser may obtain his refund by sending his request in writing to the subdivider during the refund period. If the subdivider offers land for sale by long distance telephone, Florida law requires an unconditional refund privilege of 30 days plus a six month visitation refund privilege. The disclosure set forth below is the only wording acceptable and must be set apart from any other copy and no wording may be added thereto. 5

6 DBPR-312-B Purchaser is entitled to a 30 day unconditional refund privilege from the date he signs the contract for any reason whatever. In addition, if the contract is not in default, purchaser is entitled to a six month visitation privilege from the date he signs the contract wherein he or his designated agent may personally visit the property, take a company guided tour of the subdivision and if not satisfied, may request in writing a refund of all monies paid in. NOTE: The developer who uses long distance telephone must prepare two Offering Statements, one to be used only for long distance telephone with the required disclosure and one for other methods of sale. 31. This date will be the date of the Order of Registration on the original Offering Statement (effective date) and the revised date on all subsequent Offering Statements. 32. This paragraph is to be placed on long distance Offering Statements only in place of Item 31. 6