ADRE LAW BOOK 2025

such statement misleading in light of the circumstances under which such statement was made. 2. Any statement or representation that the lot or parcels are offered without risk or that loss is impossible. 3. Any statement or representation or pictorial representation of proposed improvements or nonexistent scenes without clearly indicating the improvements are proposed and the scenes do not exist. 4. Any statement or representation that the lot or parcels are suitable as homesites or build ing lots unless either of the following is true: (a) Potable water is available from a certificated public utility or a municipal cor poration and either an individual sewage disposal system will operate or a sewer system is available from a certified public utility or a municipal corporation. (b) Facts to the contrary are clearly and conspicuously included in each advertise ment pertaining to the property. C. All advertising and sales literature shall be consistent with the information contained in the notice of intention pursuant to section 32-2181 and the public report pursuant to section 32-2183. The subdivider shall retain and have available for department review copies of all advertising ma terials used in marketing lots in the subdivision for three years after the last use of the advertising materials. D. If it appears to the commissioner that any person is or has engaged in advertising or promotion al practices in violation of this article, the commissioner may hold a hearing as a contested case under title 41, chapter 6, article 10 and issue such order or orders as he deems necessary to protect the public interest, or the commissioner may bring an action in any court of competent jurisdiction against such person to enjoin such person from continuing such violation. E. The commissioner may adopt such rules and guidelines as the commissioner deems necessary to protect the public interest and to assure that all advertising and promotional practices with respect to land subject to the provisions of this article are not false or misleading. F. It is unlawful for any owner, subdivider, agent or employee of any subdivision or other person with intent directly or indirectly to sell or lease lots or parcels subject to the provisions of this ar ticle to authorize, use, direct or aid in any advertising, communication, sales literature or promo tional practice which violates this section. G. Nothing contained in this section shall apply to the owner or publisher of a newspaper or mag azine or to any other publication of printed matter wherein such advertisement appears or to the owner or operator of a radio or television station which disseminates such advertisement when the owner, publisher or operator has no knowledge of the intent, design or purpose of the advertiser. H. For any subdivision investigation made under section 32-2183 of an out-of-state subdivision or any in-state subdivision to which the commissioner issues any order necessary to protect the public interest and insure compliance with the law, rules or public report, the subdivider shall reimburse travel and subsistence expenses incurred by the department. I. A subdivider may hold a drawing or contest to induce prospective buyers to visit a subdivision if all of the following requirements are met: 1. The subdivision has in effect a current public report. 2. The subdivider is not the subject of an ongoing investigation by the department. The department may give permission to hold a drawing or contest to a subdivider who is the subject of an ongoing investigation.

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