Interstate Land Sales Full Disclosure Act

Interstate Land Sales Full Disclosure Act

Legislation in the United States, passed in 1968, that requires some sellers of land across state lines to register with the Department of Housing and Urban Development and provide potential buyers with reports on the state of the property. A seller is subject to the Act if he/she wishes to sell more than 100 lots in a subdivision. The Act is intended to protect buyers from dishonest practices in situations when the normal regulator (an individual state) does not have jurisdiction.

Interstate Land Sales Full Disclosure Act

A federal law passed in response to abuses in the sale and development of large subdivision projects. Developers often took large deposits or even sold lots and then did not begin development for many years.The law requires registration of the subdivision with the federal government and mandates certain disclosures and rescission (contract cancellation) periods to consumers.Subdivisions of less than various size limits or those that will be completed within specified time limits are exempt, as are subdivisions in states certified as having substantially similar laws.