[CLC-Discussion] Is a contract to build a home in a residential subdivision that is not developed a security

[Gibbons, Michael]

Depends in part on  how the developer markets the homes. If they are marketed as end user/buyer occupied, then not sale of security.  However, if the marketing emphasizes ROI and use of the property as a rental unit to be managed by others with periodic payments of rental income, then it may be considered  a security.

Michael R. Gibbons  (Bio<http://lowndes-law.com/our-people/michael-r-gibbons>)
Shareholder
Lowndes, Drosdick, Doster, Kantor & Reed, P.A.
215 N. Eola Drive
Orlando, FL 32801
Phone: 407-418-6378
Fax: 407-843-4444
email: michael.gibbons at lowndes-law.com<mailto:michael.gibbons at lowndes-law.com>
website: http://www.lowndes-law.com<http://www.lowndes-law.com/>

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From: clc-discussion-bounces at lists.flabarrpptl.org [mailto:clc-discussion-bounces at lists.flabarrpptl.org] On Behalf Of Thomas M Dillon
Sent: Monday, March 30, 2015 1:22 AM
To: CLC-Discussion at lists.flabarrpptl.org
Subject: [CLC-Discussion] Is a contract to build a home in a residential subdivision that is not developed a security

A residential developer advertises homes for sale.  The homes have not been constructed, the subdivision has not been developed, and the land has not been cleared.  Is this activity the offering of a security?  If so, is there an exemption from registration of the security?

Thomas M Dillon
Email: lawtmd at gmail.com<mailto:lawtmd at gmail.com>
Florida Bar No. 673064
Thomas M Dillon, PA
1477 Park Beach Cir. Apt. 32
Punta Gorda, FL 33950-5252
Phone: 941-626-6832

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