Section 203 – Required disclosures.

• (1) A sponsor or licensee who sells or offers to sell an undivided fractionalized long-term estate shall provide each prospective purchaser a written disclosure, related to the real property in which the undivided fractionalized long-term estate is offered, that:
  • (a) if applicable:
    • (i) includes a copy of any master lease agreement; and
    • (ii) states whether the sponsor is the master lease tenant or an affiliate of the master lease tenant;
  • (b) includes any material information that relates to a current lease or sublease that affects the real property in which the undivided fractionalized long-term estate is offered;
  • (c) includes a copy of:
    • (i) a tenants in common agreement; or
    • (ii) an agreement that forms the substance of the undivided fractionalized long-term estate and includes a definition of the undivided fractionalized interest;
  • (d) describes any improvements to the real property in which the undivided fractionalized long-term estate is offered;
  • (e) includes a copy of any management agreement;
  • (f) describes the relationship, if any, between each property manager and the sponsor; and
  • (g) includes any additional information that an ordinarily prudent purchaser would consider material to deciding whether to purchase the undivided fractionalized long-term estate, as determined by the commission, with concurrence by the division, by rule in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

• (2) A sponsor or licensee who sells or offers to sell an undivided fractionalized long-term estate shall provide the written disclosure described in Subsection (1) to the prospective purchaser before the prospective purchaser purchases the undivided fractionalized long-term estate.

Enacted by Chapter 381, 2016 General Session