In 1968, Congress enacted the Interstate Land Sales Full Disclosure Act, 15 U.S.C.S. § 1701. In enacting the law, it was Congress’ purpose to eliminate fraud in interstate sales of land. Briefly stated, the law requires certain disclosures in connection with the sale of vacant land. Despite numerous challenges since its enactment, the Interstate Land Sales Full Disclosure Act has passed constitutional muster.
The law requires land developers to register subdivisions of 100 or more non-exempt lots with the United States Department of Housing and Urban Development (HUD) and to provide each purchaser with a disclosure document known as a “Property Report.” The Property Report contains relevant information about the subdivision and must be delivered to each purchaser before the signing of the contract or agreement.
The law sets forth numerous exemptions from its scope. The exemptions include offerings that involve fewer than 25 lots that are part of a common promotional plan.
In interpreting the Interstate Land Sales Full Disclosure Act, courts have accorded the law a liberal construction in order to fully effectuate Congress’ purpose.
If you believe that your rights under the Interstate Land Sales Full Disclosure Act have been violated, you may send a complaint to:
Office of RESPA and Interstate Land Sales
U.S. Department of Housing and Urban Development
451 7th Street, SW
Washington, DC 20410
Copyright 2012 LexisNexis, a division of Reed Elsevier Inc.