Section R4-28-B1209. Options; Blanket Encumbrances; Releases

A.      The Department shall not issue or amend a public report for any lot held under option or subject to a blanket encumbrance if a condition precedent to the optionee’s right to acquire the lot or to release from the blanket encumbrance shows that the lot shall:

1.        Be acquired or released in a particular sequence,

2.        Be acquired or released only after one or more additional lots have been acquired or released, or

3.        Not be released if the encumbrance is in default because of a cross-default provision contained in the encum- brance,

B.       The developer may require payment of a premium to permit the acquisition or release of the lot.

C.      When a blanket encumbrance clouds title to a development, the developer shall place a written statement from the holder of the blanket encumbrance in the public report application, quoting the provisions that enable a buyer to acquire title to a lot, free of the blanket encumbrance.

Historical Note

Section R4-28-B1209 adopted by final rulemaking at 5

A.A.R. 650, effective February 3, 1999 (Supp. 99-1).