§ 34-41-4.02. Liability for public offering statement requirements. (a) Except as provided in subsection (b), a developer, prior to the offering of any interest in a unit to the public, shall prepare a public offering statement conforming to the requirements of §§ 34-41-4.03, 34-41-4.04 and 34-41-4.05.

(b) A developer may transfer responsibility for preparation of all or a part of the public offering statement to a successor developer (§ 34-41-3.04) or to a person in the business of selling real estate who intends to offer time shares in the time-share property for his or her own account. In the event of any such transfer, the transferor shall provide the transferee with any information necessary to enable the transferee to fulfill the requirements of subsection (a).

(c) Any developer or other person in the business of selling real estate who offers a time share for his or her own account to a purchaser shall deliver a public offering statement in the manner prescribed in § 34-41-4.06(a). The person who prepared all or a part of the public offering statement is liable under §§ 34-41-4.06, 34-41-4.15, 34-41-5.05 and 34-41-5.06 for any false or misleading statement set forth therein or for any omission of material fact therefrom with respect to that portion of the public offering statement which he or she prepared. If a developer did not prepare any part of a public offering statement that he or she delivers, he or she is not liable for any false or misleading statement set forth therein or for any omission of material fact therefrom unless he or she had actual knowledge of the statement or omission or, in the exercise of reasonable care, should have known of the statement or omission.

(d) If a time-share property is part of any other real estate regime in connection with the sale of which the delivery of a public offering statement is required under the laws of this state, a single public offering statement conforming to the requirements of §§ 34-41-4.03, 34-41-4.04 and 34-41-4.05 as those requirements relate to all real estate regimes in which the time-share property is located, and to any other requirements imposed under the laws of this state, may be prepared and delivered in lieu of providing two (2) or more public offering statements.

History of Section. (P.L. 1984, ch. 141, § 2.)