- 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 not be released if the encumbrance is in default because of a cross-default provision contained in the encumbrance.
- 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). Amended by final rulemaking at 31 A.A.R. 4267 (November 7, 2025), effective December 13, 2025 (Supp. 25-4).