(a) An application for consolidation shall be prepared and submitted in the same format as an application for initial registration.
(b) Where there is no change in the information submitted by the developer for the initial registration, the documents required by Subsection (3) may be incorporated by reference to documents on file with the division.
(c) An incomplete application for consolidation shall be treated as provided in Subsection (6).
(d) New inventory added to a project through consolidation is subject to inspection by the division.
(6) Notice of defect.
(a) If an application is incomplete, or otherwise fails to comply with Section 57-19 et seq. or these rules, the director shall send a notice of defect to the developer or the developer's legal representative specifying:
(i) what additional information is required to cure the defect; and
(ii) the deadline by which the division must receive the additional information.
(b) After receipt of a notice of defect, the developer may not offer units to the public:
(i) until the defect is cured and a registration obtained; or
(ii) without obtaining a temporary permit pursuant to Section 57-19-6(3) and Subsection (8).
(c)(i) If the additional information is not received by the division by the deadline specified in the notice of defect, the director may deny the registration.
(ii) An order of denial may be appealed pursuant to Section 57-19-17.
(7) Standards for approval.
(a) The director may not approve an application for registration of a project unless:
(i) the documents submitted pursuant to Subsection (3) meet the requirements of Section 57-19 et seq. and these rules; and
(ii) the developer demonstrates the ability to convey or cause to be conveyed the interests offered for disposition.
(b) The division may not issue a project registration to a developer that has an officer, partner, director, or owner who has:
(i) been prosecuted for a felony that resulted in a:
(A) conviction within the five-year period preceding the date of application;
(B) plea agreement within the five-year period preceding the date of application; or
(C) jail or prison release date falling within the five-year period preceding the date of application; or
(ii) been prosecuted for a misdemeanor involving fraud, misrepresentation, theft, or dishonesty that resulted in a:
(A) conviction within the three-year period preceding the date of application; or
(B) jail or prison release date falling within the three-year period preceding the date of application.
(c) If the director determines that a registration application and supporting documentation meet the criteria for registration, the division shall issue:
(i) an order of registration designating the form of the property report that the developer is required to provide to a prospective purchaser pursuant to Section 57-19-11;
(ii) a property report cover sheet, which the developer shall attach to the property report as its first page; and
(iii) a receipt for property report, which the developer shall attach to the property report as its last page.
(8) Temporary permit.
(a) To apply for a temporary permit, a person shall:
(i) make application by submitting a written request to the director;
(ii) comply with Section 57-19-6(3); and
(iii) pay all fees required for registration.
(b) A temporary permit issued by the director is valid for a period of 30 days from the date of issue.
(c) A temporary permit may not be renewed.
(9) Notification of changes.
(a) A developer whose project is registered under Section 57-19 et seq. shall report to the division within 10 business days any change in:
(i) the developer's contact information;
(ii) the disclosures required under Section 57-19-11;
(iii) the information provided under this Subsection (3), including changes in salespersons employed or contracted to advertise, offer, or sell interests in the project;
(iv)(A) the bankruptcy of an entity controlled or owned by the developer that engages in the advertisement, offering, or sale of interests; and
(B) if the developer is an individual, the filing of a personal bankruptcy;
(v) the suspension, revocation, surrender, cancellation, or denial or a professional license or professional registration issued to the developer, whether the license or registration is issued by this state or another jurisdiction;
(vi) the entry of a cease and desist order, a temporary or permanent injunction, or a regulatory action:
(A) against the developer by a court or a government agency; and
(B) based on:
(I) conduct or a practice involving the advertisement, offering, or sale of interests; or
(II) conduct involving fraud, misrepresentation, or deceit; and
(vii) a finding of fraud, misrepresentation, or deceit entered against the developer in a judicial or administrative proceeding instituted by a purchaser and arising out of or relating to:
(A) the advertising or sale of an interest;
(B) disclosures required under Section 57-19-11; or