Wednesday, July 22, 2009

Economic Conditions Increase Claims to Rescind Real Estate Puchase Contracts

Here's an interesting topical CLE by the ABA: "The Land Sales Battle: Sellers and Purchasers Spar Over the Interstate Land Sales Full Disclosure Act."

According to the CLE's promotional email: "As the economy has worsened, a tremendous number of claims to rescind purchase contracts have been filed in connection with the Interstate Land Sales Full Disclosure Act "ILSA" and its exemptions from registration."

The ILSA is administered by the U.S. Department of Housing and Urban Development ("HUD"). The intent of Congress was to protect consumers from fraud and abuse in the sale or lease of land. The ILSA was enacted by Congress in 1968 and patterned after the Securities Law of 1933. Among other things, the ILSA requires land developers to register subdivisions of 100 or more non-exempt lots with HUD and to provide each purchaser with a disclosure document called 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.

For more information see HUD's Interstate Land Sales web site.

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