Upon receipt of an application for registration in proper form, the commission shall forthwith initiate an examination of the application for registration to determine that:
(1) The requirements of section 55-1806, Idaho Code, have been satisfied, the subdivider can convey or cause to be conveyed the interest in subdivided lands offered for disposition if the purchaser complies with the terms of the offer and, when appropriate, that release clauses, conveyances in trust, escrow and impoundage provisions and other safeguards have been provided;
(2) There is reasonable assurance that all proposed improvements will be completed as represented;
(3) There is no evidence which would reasonably lead the commission to believe that the subdivider, or if a corporation, partnership or other legal entity, its individual officers, directors, general partners, members, managers or other such principals are contemplating a fraudulent or misleading sales promotion; and
(4) The public offering statement requirements of this chapter have been satisfied.