57-19-26. Exemptions.

362 words·~2 min read·/ut/title-57/chapter-19/57-19-26

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Effective 5/10/2016

(1)Unless entered into for the purpose of evading the provisions of this chapter, the following transactions are exempt from registration:

(a)an isolated transaction by an owner of an interest in a development or by a person holding the owner's executed power of attorney;

(b)an offer or sale by a governmental entity; and

(c)a resale of an interest that is:

(i)acquired:

(A)by the developer who initially registered the development or by the managing association of the development; and

(B)through a foreclosure, quitclaim deed, deed in lieu of foreclosure, or equivalent means;

(ii)not offered as part of a development that includes one or more interests that are unregistered or have been registered by a different developer or as part of a different development; and

(iii)closed after the developer or managing association provides a purchaser the disclosures required by Section 57-19-11 and the right to rescind required by Section 57-19-12 .

(2)After a resale by a developer or managing association that is claimed to be exempt under Subsection (1)(c) , the division retains jurisdiction to:

(a)investigate a complaint regarding the resale; and

(b)if applicable, take an administrative action against the developer or managing association on the basis of unprofessional conduct, as described in Section 57-19-13 .

(a)The director may, by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act , or by order, exempt any person from any requirement of this chapter if the director finds that the offering of an interest in a development is essentially noncommercial.

(b)The offering of an interest in a development that has 10 or fewer interests is considered essentially noncommercial.

(c)A person who does not meet the requirements described in Subsection (3)(b) , but believes that a proposed offering of more than 10 interests in a development is essentially noncommercial, may request an order of exemption from the director.

(d)To request an order of exemption under this section, a person shall submit to the director a request for agency action in accordance with Section 63G-4-201 .

Amended by Chapter 255 , 2016 General Session