THE NEW JERSEY REAL ESTATE LICENSE ACT Page 26

accommodations located in the State or which are sold or offered for sale to any individual located in the State.
b. Upon the submission of an application approved by the commission, the commission may grant a 90-day preliminary registration to allow the developer to begin offering and selling timeshare interests in a timeshare plan regardless of whether the accommodations of the timeshare plan are located within or outside of the State. Upon submission of a substantially complete application for an abbreviated or comprehensive registration under this act, including all appropriate fees, to the commission prior to the expiration date of the pieliminary registration, the preliminary registration will be automatically extended during the registration review period provided that the developer is actively and diligently pursuing registration under this act. The preliminary registration shall automatically terminate with respect to those timeshare interests covered by a final public offering statement that is issued before the scheduled termination date of the preliminary registration. The preliminary registration shall also terminate upon the issuance of any notice of rejection due to the developer’s failure to comply with the provisions of this act.
To obtain a preliminary registration, the developer shall provide all of the following:
(1) Submit the reservation instrument to be used in a form previously approved by the department with at least the following provisions:
(a)The right of both the developer and the potential purchaser to unilaterally cancel the reservation at any time;
(b)The payment to the potential purchaser of his or her total deposit following cancellation of the reservation by either party;
(c)The placing of the deposit into an escrow account; and (3)Submit the filing fee for a preliminary registration asprovided for by regulation. The filing fee shall be in addition tothe filing fees for an abbreviated or comprehensive registrationas established by this act;
(4)File all advertisements to be utilized by the developer under the preliminary registration with the commission before use.
All advertisements and advertising literature shall contain thefollowing, or substantially similar, disclaimer:
“This advertising material is being used for the purpose ofsoliciting sales of timeshare interests.”;
(5)Such other information as the commission may requirein order to further the provisions of this act, to assure full andfair disclosure and for the protection of purchaser interests.
c. Prior to the issuance of an order of registration for an abbreviated or comprehensive registration, the commission mayissue a conditional registration approval for a timeshare plan ifthe filing is deemed to be substantially complete by the commission and the commission determines that the deficiencies arelikely to be corrected by the applicant in a reasonable time andmanner. Once the commission issues a conditional registrationapproval, the applicant may begin entering into purchasecontracts with the purchaser and provide the purchaser with themost current version of the public offering statement; however,no rescission period may begin to run until the final approvedpublic offering statement is delivered to the purchaser. If thereis no material difference between the documents provided to thepurchaser pursuant to the conditional registration and thedocuments approved as part of the final order of approval, thenthose documents need not be delivered again to the purchaser.All purchase contracts that are executed under the authority of aconditional registration approval shall contain the followingprovisions:
(d)A statement to the effect that the offering has not yet received final approval from the commission, and that no offering can be made until an offering plan has been filed with, and accepted by, the commission;
(2)Agree to provide each potential purchaser with a copy of the preliminary public offering statement and an executed receipt for a copy before any money or other thing of value has been accepted by or on behalf of the developer in connection with the reservation;
(3)Agree to provide a copy of the reservation instrument signed by the potential purchaser and by or on behalf of the developer to the potential purchaser;
(4)Provide evidence acceptable to the commission that all funds received by the developer will be placed into an independent escrow account with instructions that no funds will be released until a final order of registration has been granted;
26 (1)No escrow will close, funds will not be released from escrow, and the interest contracted for will not be conveyed until afinal approved public offering statement for the timeshare plan isfurnished to the purchaser.
(2)The contract may be rescinded, in which event the entire sum of money paid or advanced by the purchaser shall bereturned if the purchaser or lessee is dissatisfied with the finalpublic offering statement.
(3)The term for a conditional registration approval shall besix months from the date of approval by the commission, andmay be extended upon application to the commission for an additional six month period.
d. A developer shall include in its application for registrationwith the commission, the following information:
(1) The developer’s legal name, any assumed names used bythe developer, and the developer’s principal office location,mailing address, primary contact person and telephone number;
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