57-11-4 — Exemptions.
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57-11-4. Exemptions.
(1) Unless the method of disposition is adopted for the purpose of evasion of this chapter or the federal act, this chapter does not apply to offers or dispositions of an interest in land:
(a) by a purchaser of subdivided lands for his own account in a single or isolated transaction;
(b) on each unit of which there is a residential, commercial, or industrial building, or on each unit of which there is a legal obligation on the part of the seller to complete construction of such a building within two years from date of disposition;
(c) to any person who acquires that interest for use in the business of constructing residential, commercial, or industrial buildings, or to any person who acquires that type of land for the purpose of disposition to a person engaged in that business, unless the person who acquires land for these purposes sells that land to individuals as unimproved lots with no legal obligation on the part of the seller to construct a residential, commercial, or industrial building on that lot within two years from the date of disposition;
(d) pursuant to court order;
(e) by any government or government agency;
(f) if at the time of the offer or disposition the subdivider furnishes satisfactory assurance of completion of the improvements described in Subsections (1)(f)(ii) and (iii) and the interest lies within the boundaries of a city or a county which:
(i) has a planning and zoning board utilizing or employing at least one professional planner;
(ii) enacts ordinances that require approval of planning, zoning, and plats, including the approval of plans for streets, culinary water, sanitary sewer, and flood control; and
(iii) in which the interest in land will have the improvements described in Subsection (1)(f)(ii) plus telephone and electricity;
(g) in an industrial park;
(h) as cemetery lots; or
(i) if the interest is offered as part of a camp resort as defined in Section 57-19-2 or a timeshare development as defined in Section 57-19-2.
(2) Unless the method of disposition is adopted for the purpose of evasion of this chapter or the provisions of the federal act, the provisions of this chapter, except as specifically designated, do not apply to:
(a) offers or dispositions of evidences of indebtedness secured by a mortgage or deed of trust on real estate;
(b) offers or dispositions of securities or units of interest issued by a real estate investment trust regulated under any state or federal statute;
(c) offers or dispositions of subdivided lands registered under the federal act and which the division finds to be in the public interest to exempt from the registration requirements of this chapter. A subdivider seeking to qualify under this exemption shall file with the division a copy of an effective statement of record filed with the secretary of the Department of Housing and Urban Development together with a filing fee of $100. In the event the subdivider does not qualify under this exemption, this amount shall be credited to the filing fee required for registration under this chapter. Nothing in this Subsection (2)(c) exempts a subdivider from the provisions of Sections 57-11-16 and 57-11-17 or the requirement to file an annual report with the division under Section 57-11-10;
(d) offers or dispositions of securities currently registered with the Securities Division; or
(e) offers or dispositions of any interest in oil, gas, or other minerals or any royalty interest in these assets if the offers or dispositions of those interests are regulated as securities by the United States or by the Securities Division.
(3) (a) Notwithstanding the exemptions in Subsections (1) and (2), any person making an offer or disposition of an interest in land which is located in Utah shall apply to the division for an exemption before the offer or disposition is made if:
(i) the person is representing, in connection with the offer or disposition, the availability of culinary water service to or on the subdivided land; and
(ii) the culinary water service is provided by a water corporation as defined in Section 54-2-1.
(b) A subdivider seeking to qualify under this exemption shall file with the division an application for exemption together with a filing fee of $50 and an application containing:
(i) information required by the division to show that the offer or disposition is exempt under the provisions of this section;
(ii) a statement as to what entity will be providing culinary water service and the nature of that entity; and
(iii) a copy of the entity's certificate of convenience and necessity issued by the Public Service Commission, or evidence that the entity providing water service is exempt from the jurisdiction of the Public Service Commission.
(4) The director may by rule or order exempt any person from any requirement of this chapter if the director finds that the offering of an interest in a subdivision is essentially noncommercial. For purposes of this section, the bulk sale of subdivided lands by a subdivider to another person who will become the subdivider of those lands is considered essentially noncommercial.
(1) Unless the method of disposition is adopted for the purpose of evasion of this chapter or the federal act, this chapter does not apply to offers or dispositions of an interest in land:
(a) by a purchaser of subdivided lands for his own account in a single or isolated transaction;
(b) on each unit of which there is a residential, commercial, or industrial building, or on each unit of which there is a legal obligation on the part of the seller to complete construction of such a building within two years from date of disposition;
(c) to any person who acquires that interest for use in the business of constructing residential, commercial, or industrial buildings, or to any person who acquires that type of land for the purpose of disposition to a person engaged in that business, unless the person who acquires land for these purposes sells that land to individuals as unimproved lots with no legal obligation on the part of the seller to construct a residential, commercial, or industrial building on that lot within two years from the date of disposition;
(d) pursuant to court order;
(e) by any government or government agency;
(f) if at the time of the offer or disposition the subdivider furnishes satisfactory assurance of completion of the improvements described in Subsections (1)(f)(ii) and (iii) and the interest lies within the boundaries of a city or a county which:
(i) has a planning and zoning board utilizing or employing at least one professional planner;
(ii) enacts ordinances that require approval of planning, zoning, and plats, including the approval of plans for streets, culinary water, sanitary sewer, and flood control; and
(iii) in which the interest in land will have the improvements described in Subsection (1)(f)(ii) plus telephone and electricity;
(g) in an industrial park;
(h) as cemetery lots; or
(i) if the interest is offered as part of a camp resort as defined in Section 57-19-2 or a timeshare development as defined in Section 57-19-2.
(2) Unless the method of disposition is adopted for the purpose of evasion of this chapter or the provisions of the federal act, the provisions of this chapter, except as specifically designated, do not apply to:
(a) offers or dispositions of evidences of indebtedness secured by a mortgage or deed of trust on real estate;
(b) offers or dispositions of securities or units of interest issued by a real estate investment trust regulated under any state or federal statute;
(c) offers or dispositions of subdivided lands registered under the federal act and which the division finds to be in the public interest to exempt from the registration requirements of this chapter. A subdivider seeking to qualify under this exemption shall file with the division a copy of an effective statement of record filed with the secretary of the Department of Housing and Urban Development together with a filing fee of $100. In the event the subdivider does not qualify under this exemption, this amount shall be credited to the filing fee required for registration under this chapter. Nothing in this Subsection (2)(c) exempts a subdivider from the provisions of Sections 57-11-16 and 57-11-17 or the requirement to file an annual report with the division under Section 57-11-10;
(d) offers or dispositions of securities currently registered with the Securities Division; or
(e) offers or dispositions of any interest in oil, gas, or other minerals or any royalty interest in these assets if the offers or dispositions of those interests are regulated as securities by the United States or by the Securities Division.
(3) (a) Notwithstanding the exemptions in Subsections (1) and (2), any person making an offer or disposition of an interest in land which is located in Utah shall apply to the division for an exemption before the offer or disposition is made if:
(i) the person is representing, in connection with the offer or disposition, the availability of culinary water service to or on the subdivided land; and
(ii) the culinary water service is provided by a water corporation as defined in Section 54-2-1.
(b) A subdivider seeking to qualify under this exemption shall file with the division an application for exemption together with a filing fee of $50 and an application containing:
(i) information required by the division to show that the offer or disposition is exempt under the provisions of this section;
(ii) a statement as to what entity will be providing culinary water service and the nature of that entity; and
(iii) a copy of the entity's certificate of convenience and necessity issued by the Public Service Commission, or evidence that the entity providing water service is exempt from the jurisdiction of the Public Service Commission.
(4) The director may by rule or order exempt any person from any requirement of this chapter if the director finds that the offering of an interest in a subdivision is essentially noncommercial. For purposes of this section, the bulk sale of subdivided lands by a subdivider to another person who will become the subdivider of those lands is considered essentially noncommercial.
Amended by Chapter 292, 2003 General Session