NEW YORK STATE OFFICE OF THE ATTORNEY GENERAL REAL ESTATE FINANCE BUREAU 120 Broadway. 23 rd Floor New York. NY 10271-0332 Tel. 212 416 8121 Fax 212 416 8136 http://www.oag.state.ny.us/bureaus/real_estate_finance/pros.html
GUIDELINES FOR OFFERS TO SELL OR TO PURCHASE REAL ESTATE SECURITIES ON THE INTERNET
An offer for sale or purchase of a real estate security within the meaning of New York General Business Law (“GBL”) Article 23-A will not be deemed to be made within this state merely because an offer made on or through the Internet, the World Wide Web, or a similar proprietary or common carrier electronic system (such systems are hereinafter referred to collectively as the “Internet”) originating outside this state is received in this state where (a) the offer indicates, directly or indirectly, that the offer is not being made to residents of the State of New York; (b) the offer is not specifically directed to any person in the State of New York by, or on behalf of, the offeror; and (c) no sales or purchases of the security are made in the State of New York as a result of the offer until such time as all registration requirements pursuant to GBL Article 23-A are fulfilled. The term real estate securities includes cooperative, condominium, timeshare, homeowners association interests and real estate syndication offerings. Accordingly, you may advertise or offer real estate securities such as a timeshares or condominiums on the Internet without registering with the New York State Department of Law only if all the following conditions are met: (1) the company whose real estate securities are being offered is not incorporated in New York State and does not have any of its offices in New York State, (2) the person or entity making the offer is not incorporated or located in New York State, (3) the offer indicates, directly or indirectly, that the offer is not being made to residents of the State of New York, (4) the offer is not specifically directed to any person or entity in the State of New York by, or on behalf of, the offeror, and (5) no sales or purchases of the security are made in or from the State of New York as a result of the offer until such time as either an offering plan is accepted for filing pursuant to GBL §352-e, or a written exemption is obtained pursuant to GBL §359-f(2), or else an application is granted pursuant to and in accordance with Cooperative Policy Statement 1 or 7, or a “No-Action” request is granted. Nothing in these Guidelines shall preclude any person from relying on any available automatic exemption pursuant to GBL§359-f (1), nor shall these guidelines be deemed to relieve any person from liability under GBL §352-c or §353.
(Effective 4-15-97)