SECTION 660:20-3-3. Public offering statement

(a)   Receipt for public offering statement. The subdivider shall use a Public Offering Statement as provided and required in Section 626.A of the Land Sales Act and prepared in the manner instructed by Form LRF-625.A, adopted by the Administrator as the "Public Offering Statement-Instruction Guide." The subdivider shall obtain and retain a receipt as provided and required therein. The receipt may be in such form as the subdivider chooses, but it shall not contain or constitute a release of any kind and shall cover and pertain only to the receipt of a copy of the Public Offering Statement by the purchaser. Also, the receipt shall state and disclose that the Oklahoma Public Offering Statement includes and consists of a Summary Disclosure Statement, a Property Report as defined hereinafter, and, if applicable, Oklahoma Supplement to the Property Report; and the receipt shall acknowledge that the purchaser received a copy of each of the documents and instruments comprising the Oklahoma Public Offering Statement. The receipt should also state the name of the person from whom the Oklahoma Public Offering Statement was received by the purchaser, the address where it was received and the date when it was received. There also should be a place for the purchaser to sign and a place separately provided for the purchaser to write in the date he signed the receipt. The failure to obtain and retain such a fully completed receipt in compliance with the requirements of Section 626.A of the Land Sales Act shall give rise to a presumption on the part of the Administrator that a Public Offering Statement was not delivered and provided to a purchaser according to law.

(b)   Federal Property Report. In cases where a full registration of the subdivided land is filed with the OILSR for use in Oklahoma, the federal Property Report used in connection with the OILSR filing shall be submitted accompanied by a Summary Disclosure Statement and, together, the two documents shall be used as the Oklahoma Public Offering Statement.

(c)   Summary Disclosure Statement. The Summary Disclosure Statement required by Section 626.B of the Land Sales Act should be prepared in a manner consistent with this Section and as instructed by FORM LRF-626.B, adopted by the Administrator as the "Summary Disclosure Statement Guide." The Summary Disclosure Statement should be on 8 1/2″ × 11,″ lettersize, white paper and the smallest lettering thereon should be no smaller than uppercase, "capital," standard, elite typewriter size type. The Summary Disclosure Statement may be typewritten, printed, mimeographed or otherwise produced, but it should be legible and should conform to the minimum standards set out herein. The Summary Disclosure Statement should be no more than four (4) pages long. It may be made by using both the front and back of two (2) sheets, which shall be counted as four (4) pages. The Summary Disclosure Statement should contain and set out in brief, succinct, and concise language, using plain English and emphasizing the most negative aspects and greatest risk factors to the purchaser, a summary of the information required in Section 626.B of the Land Sales Act, except that no financial statements of the subdivider shall be required in the Summary Disclosure Statement. In addition to the other information required to be contained in the Summary Disclosure Statement, it shall contain the following additional two items:

(1)   a statement of the kind of title the purchaser will have upon completion of payment for any of the subdivided land and a description of what happens if the purchaser defaults on any payments and all forfeitures which may occur; and

(2)   a schedule, in tabular, columnar form, showing the date on which the subdivided land was acquired by the subdivider, or the date on which each parcel of the subdivided lands was acquired if not all acquired at the same time and the number of acres in each parcel; a column showing the amounts paid for each parcel of the subdivided land; a column showing the cost of all improvements made by the subdivider on each parcel of the subdivided land; a column showing the total historical cost basis, adjusted for any depreciation of improvements, of each parcel of the subdivided land; and a column showing the proposed total sales price of all lots in each parcel of the subdivided lands. Every item in the Summary Disclosure Statement should be referenced to the part, section and page number, when applicable, of the Property Report, or main body of the Public Offering Statement, wherein elaboration, explanation and additional information regarding that item can be found. The questions which should be set out and answered in the Summary Disclosure Statement are as follows:

(A)   If I have any questions or there is trouble where do I find the seller and his representatives? Here include the name, principal address and telephone number of the subdivider, his offices and agents in this state.

(B)   What does this land look like and how large will the development be? Here include a general description of the subdivided lands including a statement of the total number of lots to be offered.

(C)   If a purchaser decides later to sell his lot, what kind of help can he get selling it and what kind of local property market can he expect? Here include the assistance, if any, that the subdivider, his agents or affiliates will provide to the purchaser in the resale of the property and the extent to which the subdivider, his agents or affiliates will be in competition in the event of resale.

(D)   What kind of rights or title to the land do I get immediately and what kind of title do I have after the lot is paid for? Here include material terms of any encumbrances, easements, mortgages and liens. Also include the plans and efforts to remove such liens, encumbrances or mortgages and the results of the success or failure thereof.

(E)   What kind of taxes and assessments will I have to pay? Here include the material terms of all existing taxes and existing or proposed special taxes or assessments, including required membership fees or dues, which affect the subdivided lands.

(F)   How can I use this property? Here include material zoning restrictions, restrictive covenants and other regulations affecting the use of the land. Also include the intended use for which the land is sold and material physical limitations and restrictions of the land relative to the intended use.

(G)   What kind of utilities and other improvements now exist on the land and what kind are promised for the future? Here include information about existing or proposed improvements including, but not limited to, streets, water supply, levees, drainage control systems, irrigation systems, sewage disposal systems and customary utilities and the estimated cost, date of completion and responsibility for construction and maintenance of existing and proposed improvements which are referred to in connection with the offering or disposition of any lot in the subdivided lands.

(H)   What is the soil and climate like? Here include topographic and climatic characteristics of the subdivided lands and adjacent area.

(I)   What hospitals, churches, fire stations, police protection and other community services are available? Here include the existing provisions for access of the subdivision to community fire protection, the location of primary and secondary schools, the proximity to the municipalities and the population thereof, the improvements installed or to be installed, including off-site and on-site community and recreational facilities, by whom they were or are to be installed, maintained or paid for, and an estimate of completion thereof.

(J)   What happens if I fail to make any payments, or if I make my payments but the seller fails to pay on his mortgage? Can any of my rights in the land be forfeited? Here include the kind of title the purchaser will have upon completion of payment for any of the subdivided land and what happens if the purchaser defaults on any payments and all forfeitures which may occur. Also describe any and all "take-out" provisions for all mortgages or state that there are none and state the possible consequences.

(K)   What kind of value did this land have prior of the present development and how much is being spent to improve it? Here provide a schedule, in tabular, columnar form, showing the date on which the subdivided lands were acquired by the subdivider, or the date on which each parcel of the subdivided land was acquired if all not acquired at the same time and the number of acres in each parcel; a column showing the amounts paid for each parcel of the subdivided land; a column showing the costs of all improvements made by the subdivider on each parcel of the subdivided land; a column showing the total historical cost basis, adjusted for any depreciation of improvements, of each parcel of the subdivided land; and a column showing the proposed total sales price of all lots in each parcel of subdivided land.

(d)   Supplement. In the event any item of information required by Section 626.B of the Land Sales Act is not contained in the format of the federal Property Report, or is not included in sufficient detail to constitute adequate disclosure, then a supplement to the Property Report shall be prepared, in the same format, in which additional sufficient information is provided and disclosed to satisfy the requirements of Section 626.B of the Land Sales Act in a form and manner acceptable to the Administrator; and such supplement shall be used with the Summary Disclosure Statement and the main body of the Property Report as part of the Oklahoma Public Offering Statement.