N.Y. Real Property Law 337-B – Offering statement; contents; prohibitions
§ 337-b. Offering statement; contents; prohibitions. 1. Contents. The offering statement shall contain (a) the names, addresses, business background of the subdivider, and if such subdivider is a partnership or corporation, the names, addresses and business background of each of the partners, officers and principal stockholders, the nature of their fiduciary relationship and their financial relationship, past, present and future, to the subdivider; (b) a duly certified financial statement of the assets and liabilities of the subdivider, as of a date not more than three months prior to the date of the filing, in such detail as the department may require; (c) a description of the subdivision and each unit or lot into which it has or will be divided, in such detail as the department may require; (d) the material terms of any encumbrances, liens and restrictions upon the subdivision and each such unit or lot; (e) data and information concerning improvements, including streets, water supply and sewerage disposal facilities, in existence on the subdivision, and the estimated cost, date of completion and responsibility for construction of improvements to be made which are referred to in connection with the sale or lease or offering for sale or lease of the subdivision or any unit or lot thereon; (f) each of the terms and conditions under which each such unit or lot is offered for sale; and (g) such additional data and information as the department may require as being necessary or appropriate in the public interest or for the protection of purchasers or lessees.
Terms Used In N.Y. Real Property Law 337-B
- Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Fiduciary: A trustee, executor, or administrator.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- subdivider: shall include every person, partnership, corporation, company or association who or which engages directly or through an agent in the business of selling, leasing or offering for sale or lease subdivided lands and subdivisions to the public in this state. See N.Y. Real Property Law 337
2. There may be omitted from any offering statement any of the information required under subdivision one of this section which the department may by rules and regulations designate as not being necessary or appropriate in the public interest or for the protection of purchasers.
3. Limitations. No offer to sell or lease subdivided lands by means of advertisements in periodicals or newspapers, or on television or radio, or by motion picture or otherwise shall be made unless each such advertisement contains reference to the fact that an offering statement has been filed with the department and that a copy of such statement is available, upon request, from the subdivider.
4. Except as provided in subdivision three of this section, no offer of sale or lease of subdivided lands shall be made unless such offer is accompanied by a copy of the current offering statement filed pursuant to this article.
5. The first page of the offering statement and the face of all advertising and literature employed in the sale or lease or offer for sale or lease of subdivided lands shall contain a statement in easily readable print, that the filing of the verified statement and offering statement with the department of state does not constitute approval of the sale or lease or offer for sale or lease by the department of state or any officer thereof, or that the department of state has in any way passed upon the merits of such offering.
6. No sale or lease of subdivided lands shall be made unless accompanied or preceded by the delivery to the prospective purchaser of an offering statement complying with the provisions of this section.
7. No change or amendment of an offering statement shall be made unless a copy of such change or amendment has first been filed with the department.
8. The subdivider, within thirty days after the anniversary date of the filing of an offering statement, shall file with the department of state a new current and up-to-date offering statement setting forth therein all changes which have taken place during the preceding year with respect to any and all data and information required to be set forth in such offering statement. Only a current offering statement shall be used to sell or lease or offer to sell or lease any of the subdivided lands.
9. The offering statement shall include the following statement in easily readable capital letters of not less than nine-point type: "THE OFFEROR HAS FILED ADDITIONAL INFORMATION ON THIS LAND OFFERING WITH THE DEPARTMENT OF STATE PURSUANT TO SECTION 337-A OF THE REAL PROPERTY LAW. THIS INFORMATION INCLUDES A DESCRIPTION AND MAPS OF THE PROPERTIES BEING OFFERED; A CERTIFICATE STATING IN DETAIL ALL LIENS, ENCUMBRANCES OR CLOUDS UPON THE TITLE TO THE LAND; AND STATEMENTS OF ANY PRIOR CRIMINAL CONVICTIONS OF THE PRINCIPALS MAKING THIS OFFERING WHICH INVOLVED THE SALE OR OFFERING FOR SALE OF SUBDIVIDED LANDS. INFORMATION FILED PURSUANT TO SECTION 337-A OF THE REAL PROPERTY LAW IS AVAILABLE PURSUANT TO THE FREEDOM OF INFORMATION LAW FROM THE DEPARTMENT OF STATE AT THE FOLLOWING ADDRESS: THE DEPARTMENT OF STATE, SUBDIVIDED LANDS SECTION, ALBANY, NEW YORK 12231-0001."