The Interstate Land Sales Full Disclosure Act
The Interstate Land Sales Full Disclosure (Act) prohibits developers and their real estate brokers and agents from selling or leasing, by means of interstate commerce, a lot in a subdivision of 100 or more nonexempt lots unless a Statement of Record is filed with the U.S. Department of Housing and Urban Development (HUD) that discloses and documents current information about the ownership of the land; the state of, title to the land; Certain physical characteristics; the planned availability of streets, services and utilities; and other matters.
The Statement of Record must be delivered to each purchaser or lessee in advance of signing the contract.
The Act also contains antifraud provisions that apply to subdivisions with 25 or more lots.
The willful violation of the Act will subject the offender to fines, civil damages, and possibly imprisonment.