US (United States) Code. Title 15. Chapter 42: Interestate land sales

Codificación normativa de EEUU (Estados Unidos). Legislación federal estadounidense # Commerce and Trade

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publicidad

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15 USC CHAPTER 42 - INTERSTATE LAND SALES 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 42 - INTERSTATE LAND SALES

.

-HEAD-

CHAPTER 42 - INTERSTATE LAND SALES

-MISC1-

Sec.

1701. Definitions.

1702. Exemptions.

(a) Sale or lease of lots generally.

(b) Sale or lease of lots subject to other statutory

registration and disclosure requirements.

(c) Rules and regulations.

1703. Requirements respecting sale or lease of lots.

(a) Prohibited activities.

(b) Revocation of nonexempt contract or agreement at

option of purchaser or lessee; time limit.

(c) Revocation of contract or agreement at option of

purchaser or lessee where required property

report not supplied.

(d) Additional authority for revocation of nonexempt

contract or agreement at option of purchaser or

lessee; time limit; applicability.

(e) Repayment of purchaser or lessee upon revocation

of all money paid under contract or agreement

to seller or lessor.

1704. Registration of subdivisions.

(a) Filing of statement of record.

(b) Payment of fees; use by Secretary.

(c) Filing deemed to have taken place upon receipt of

statement of record accompanied by fee.

(d) Availability of information to public.

1705. Information required in statement of record.

1706. Effective date of statements of record and amendments

thereto.

(a) Thirtieth day after filing or such earlier date

as determined by Secretary; consolidation of

subsequent statement with earlier recording.

(b) Incomplete or inaccurate statements of record.

(c) Amendment of statement of record.

(d) Suspension of statement of record containing

untrue statement or omission to state material

fact; notice and hearing; termination of order

of suspension.

(e) Examination to determine issuance of order;

access to records; order suspending statement

of record upon failure to cooperate.

(f) Service of notices.

1707. Property report.

(a) Contents of report.

(b) Promotional use.

1708. Certification of substantially equivalent State law.

(a) Criteria; request by State.

(b) Filing of State disclosure materials and related

documentation for purposes of Federal statement

of record and property report requirements;

acceptance by Secretary.

(c) Notice to State upon failure to meet requirements

and remedial action necessary for

certification.

(d) Periodic review of certified States' laws,

regulations, and administration; withdrawal of

certification.

(e) State and local governmental authorities

affected; cooperation with State authorities.

1709. Civil liabilities.

(a) Violations; relief recoverable.

(b) Enforcement of rights by purchaser or lessee.

(c) Amounts recoverable.

(d) Contributions.

1710. Court review of orders.

(a) Petition; jurisdiction; findings of Secretary;

additional evidence; finality.

(b) Stay of Secretary's order.

1711. Limitation of actions.

(a) Section 1703(a) violations.

(b) Section 1703(b) to (e) violations.

1712. Contrary stipulations void.

1713. Additional remedies.

1714. Investigations, injunctions, and prosecution of offenses.

(a) Permanent or temporary injunction or restraining

order; jurisdiction.

(b) Investigations; publication of information

concerning violations.

(c) Oaths and affirmations; subpena power.

(d) Contempt; court order requiring attendance and

testimony of witnesses; jurisdiction.

1715. Administration.

(a) Delegation of functions, duties, and powers;

scope of delegations; appointment, etc., of

delegates; right of appeal.

(b) Hearings.

(c) Procedures applicable.

1716. Unlawful representations.

1717. Penalties for violations.

1717a. Civil money penalties.

(a) In general.

(b) Agency procedures.

(c) Judicial review of agency determination.

(d) Action to collect penalty.

(e) Settlement by Secretary.

(f) ''Knowingly'' defined.

(g) Regulations.

(h) Use of penalties for administration.

1718. Rules, regulations, and orders.

1719. Jurisdiction of offenses and suits.

1719a. Repealed.

1720. Authorization of appropriations.

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15 USC Sec. 1701 01/06/03

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TITLE 15 - COMMERCE AND TRADE

CHAPTER 42 - INTERSTATE LAND SALES

-HEAD-

Sec. 1701. Definitions

-STATUTE-

For the purposes of this chapter, the term -

(1) ''Secretary'' means the Secretary of Housing and Urban

Development;

(2) ''person'' means an individual, or an unincorporated

organization, partnership, association, corporation, trust, or

estate;

(3) ''subdivision'' means any land which is located in any

State or in a foreign country and is divided or is proposed to be

divided into lots, whether contiguous or not, for the purpose of

sale or lease as part of a common promotional plan;

(4) ''common promotional plan'' means a plan, undertaken by a

single developer or a group of developers acting in concert, to

offer lots for sale or lease; where such land is offered for sale

by such a developer or group of developers acting in concert, and

such land is contiguous or is known, designated, or advertised as

a common unit or by a common name, such land shall be presumed,

without regard to the number of lots covered by each individual

offering, as being offered for sale or lease as part of a common

promotional plan;

(5) ''developer'' means any person who, directly or indirectly,

sells or leases, or offers to sell or lease, or advertises for

sale or lease any lots in a subdivision;

(6) ''agent'' means any person who represents, or acts for or

on behalf of, a developer in selling or leasing, or offering to

sell or lease, any lot or lots in a subdivision; but shall not

include an attorney at law whose representation of another person

consists solely of rendering legal services;

(7) ''blanket encumbrance'' means a trust deed, mortgage,

judgment, or any other lien or encumbrance, including an option

or contract to sell or a trust agreement, affecting a subdivision

or affecting more than one lot offered within a subdivision

except that such term shall not include any lien or other

encumbrance arising as the result of the imposition of any tax

assessment by any public authority;

(8) ''interstate commerce'' means trade or commerce among the

several States or between any foreign country and any State;

(9) ''State'' includes the several States, the District of

Columbia, the Commonwealth of Puerto Rico, and the territories

and possessions of the United States;

(10) ''purchaser'' means an actual or prospective purchaser or

lessee of any lot in a subdivision; and

(11) ''offer'' includes any inducement, solicitation, or

attempt to encourage a person to acquire a lot in a subdivision.

-SOURCE-

(Pub. L. 90-448, title XIV, Sec. 1402, Aug. 1, 1968, 82 Stat. 590;

Pub. L. 93-383, title VIII, Sec. 812(a), Aug. 22, 1974, 88 Stat.

736; Pub. L. 96-153, title IV, Sec. 401, Dec. 21, 1979, 93 Stat.

1122; Pub. L. 100-628, title X, Sec. 1089(a), Nov. 7, 1988, 102

Stat. 3283.)

-MISC1-

AMENDMENTS

1988 - Par. (10). Pub. L. 100-628 inserted ''and'' after

semicolon.

1979 - Par. (3). Pub. L. 96-153 substituted provisions defining

''subdivision'' as the division or proposed division of land into

lots for the purpose of sale or lease as part of a common

promotional plan, for provisions defining ''subdivision'' as the

division or proposed division of land into fifty or more lots for

the purpose of sale or lease as part of a common promotional plan

and presumptions respecting activities as being deemed part of such

common promotional plan.

Pars. (4) to (11). Pub. L. 96-153 added par. (4) and redesignated

former pars. (4) to (10) as (5) to (11), respectively.

1974 - Par. (3). Pub. L. 93-383, Sec. 812(a)(1), inserted '',

located in any State or in a foreign country'' after ''any land''.

Par. (7). Pub. L. 93-383, Sec. 812(a)(2), inserted ''or between

any foreign country and any State'' after ''States''.

EFFECTIVE DATE OF 1979 AMENDMENT

Section 410 of title IV of Pub. L. 96-153 provided that: ''The

amendments made by this title (enacting section 1719a of this title

and amending this section and sections 1702, 1703, 1708, 1709,

1711, 1715, and 1717 of this title) shall become effective on the

effective date of regulations implementing such amendments, but in

no case later than six months following the date of enactment of

this Act (Dec. 21, 1979), except that section 1403(b)(7) of the

Interstate Land Sales Full Disclosure Act (section 1702(b)(7) of

this title), contained in the amendment made by section 402, shall

become effective on the date of enactment.''

EFFECTIVE DATE

Section 1423, formerly Sec. 1422, of title XIV of Pub. L. 90-448,

as renumbered by Pub. L. 96-153, title IV, Sec. 409, Dec. 21, 1979,

93 Stat. 1132, provided that: ''This title (enacting this chapter)

shall take effect upon the expiration of two hundred and seventy

days after the date of its enactment (Aug. 1, 1968).''

SHORT TITLE

Section 1401 of title XIV of Pub. L. 90-448 provided that: ''This

title (enacting this chapter) may be cited as the 'Interstate Land

Sales Full Disclosure Act'.''

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15 USC Sec. 1702 01/06/03

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TITLE 15 - COMMERCE AND TRADE

CHAPTER 42 - INTERSTATE LAND SALES

-HEAD-

Sec. 1702. Exemptions

-STATUTE-

(a) Sale or lease of lots generally

Unless the method of disposition is adopted for the purpose of

evasion of this chapter, the provisions of this chapter shall not

apply to -

(1) the sale or lease of lots in a subdivision containing less

than twenty-five lots;

(2) the sale or lease of any improved land on which there is a

residential, commercial, condominium, or industrial building, or

the sale or lease of land under a contract obligating the seller

or lessor to erect such a building thereon within a period of two

years;

(3) the sale of evidence of indebtedness secured by a mortgage

or deed of trust on real estate;

(4) the sale of securities issued by a real estate investment

trust;

(5) the sale or lease of real estate by any government or

government agency;

(6) the sale or lease of cemetery lots;

(7) the sale or lease of lots to any person who acquires such

lots for the purpose of engaging in the business of constructing

residential, commercial, or industrial buildings or for the

purpose of resale or lease of such lots to persons engaged in

such business; or

(8) the sale or lease of real estate which is zoned by the

appropriate governmental authority for industrial or commercial

development or which is restricted to such use by a declaration

of covenants, conditions, and restrictions which has been

recorded in the official records of the city or county in which

such real estate is located, when -

(A) local authorities have approved access from such real

estate to a public street or highway;

(B) the purchaser or lessee of such real estate is a duly

organized corporation, partnership, trust, or business entity

engaged in commercial or industrial business;

(C) the purchaser or lessee of such real estate is

represented in the transaction of sale or lease by a

representative of its own selection;

(D) the purchaser or lessee of such real estate affirms in

writing to the seller or lessor that it either (i) is

purchasing or leasing such real estate substantially for its

own use, or (ii) has a binding commitment to sell, lease, or

sublease such real estate to an entity which meets the

requirements of subparagraph (B), is engaged in commercial or

industrial business, and is not affiliated with the seller,

lessor, or agent thereof; and

(E) a policy of title insurance or a title opinion is issued

in connection with the transaction showing that title to the

real estate purchased or leased is vested in the seller or

lessor, subject only to such exceptions as may be approved in

writing by such purchaser or the lessee prior to recordation of

the instrument of conveyance or execution of the lease, but (i)

nothing herein shall be construed as requiring the recordation

of a lease, and (ii) any purchaser or lessee may waive, in

writing in a separate document, the requirement of this

subparagraph that a policy of title insurance or title opinion

be issued in connection with the transaction.

(b) Sale or lease of lots subject to other statutory registration

and disclosure requirements

Unless the method of disposition is adopted for the purpose of

evasion of this chapter, the provisions requiring registration and

disclosure (as specified in section 1703(a)(1) of this title and

sections 1704 through 1707 of this title) shall not apply to -

(1) the sale or lease of lots in a subdivision containing fewer

than one hundred lots which are not exempt under subsection (a)

of this section;

(2) the sale or lease of lots in a subdivision if, within the

twelve-month period commencing on the date of the first sale or

lease of a lot in such subdivision after the effective date of

this subsection, or on such other date within that twelve-month

period as the Secretary may prescribe, not more than twelve lots

are sold or leased, and the sale or lease of the first twelve

lots in such subdivision in any subsequent twelve-month period,

if not more than twelve lots have been sold or leased in any

preceding twelve-month period after the effective date of this

subsection;

(3) the sale or lease of lots in a subdivision if each

noncontiguous part of such subdivision contains not more than

twenty lots, and if the purchaser or lessee (or spouse thereof)

has made a personal, on-the-lot inspection of the lot purchased

or leased, prior to signing of the contract or agreement to

purchase or lease;

(4) the sale or lease of lots in a subdivision in which each of

the lots is at least twenty acres (inclusive of easements for

ingress and egress or public utilities);

(5) the sale or lease of a lot which is located within a

municipality or county where a unit of local government specifies

minimum standards for the development of subdivision lots taking

place within its boundaries, when -

(A)(i) the subdivision meets all local codes and standards,

and (ii) each lot is either zoned for single family residences

or, in the absence of a zoning ordinance, is limited

exclusively to single family residences;

(B)(i) the lot is situated on a paved street or highway which

has been built to standards applicable to streets and highways

maintained by the unit of local government in which the

subdivision is located and is acceptable to such unit, or,

where such street or highway is not complete, a bond or other

surety acceptable to the municipality or county in the full

amount of the cost of completing such street or highway has

been posted to assure completion to such standards, and (ii)

the unit of local government or a homeowners association has

accepted or is obligated to accept the responsibility of

maintaining such street or highway, except that, in any case in

which a homeowners association has accepted or is obligated to

accept such responsibility, a good faith written estimate of

the cost of carrying out such responsibility over the first ten

years of ownership or lease is provided to the purchaser or

lessee prior to the signing of the contract or agreement to

purchase or lease;

(C) at the time of closing, potable water, sanitary sewage

disposal, and electricity have been extended to the lot or the

unit of local government is obligated to install such

facilities within one hundred and eighty days, and, for

subdivisions which do not have a central water or sewage

disposal system, rather than installation of water or sewer

facilities, there must be assurances that an adequate potable

water supply is available year-round and that the lot is

approved for the installation of a septic tank;

(D) the contract of sale requires delivery of a warranty deed

(or, where such deed is not commonly used in the jurisdiction

where the lot is located, a deed or grant which warrants that

the grantor has not conveyed the lot to another person and that

the lot is free from encumbrances made by the grantor or any

other person claiming by, through, or under him) to the

purchaser within one hundred and eighty days after the signing

of the sales contract;

(E) at the time of closing, a title insurance binder or a

title opinion reflecting the condition of the title shall be in

existence and issued or presented to the purchaser or lessee

showing that, subject only to such exceptions as may be

approved in writing by the purchaser or lessee at the time of

closing, marketable title to the lot is vested in the seller or

lessor;

(F) the purchaser or lessee (or spouse thereof) has made a

personal, on-the-lot inspection of the lot purchased or leased,

prior to signing of the contract or agreement to purchase or

lease; and

(G) there are no offers, by direct mail or telephone

solicitation, of gifts, trips, dinners, or other such

promotional techniques to induce prospective purchasers or

lessees to visit the subdivision or to purchase or lease a lot;

(6) the sale or lease of a lot, if a mobile home is to be

erected or placed thereon as a residence, where the lot is sold

as a homesite by one party and the home by another, under

contracts that obligate such sellers to perform, contingent upon

the other seller carrying out its obligations so that a completed

mobile home will be erected or placed on the completed homesite

within a period of two years, and provide for all funds received

by the sellers to be deposited in escrow accounts (controlled by

parties independent of the sellers) until the transactions are

completed, and further provide that such funds shall be released

to the buyer on demand without prejudice if the land with the

mobile home erected or placed thereon is not conveyed within such

two-year period. Such homesite must conform to all local codes

and standards for mobile home subdivisions, if any, must provide

potable water, sanitary sewage disposal, electricity, access by

roads, the purchaser must receive marketable title to the lot,

and where common facilities are to be provided, they must be

completed or fully funded;

(7)(A) the sale or lease of real estate by a developer who is

engaged in a sales operation which is intrastate in nature. For

purposes of this exemption, a lot may be sold only if -

(i) the lot is free and clear of all liens, encumbrances, and

adverse claims;

(ii) the purchaser or lessee (or spouse thereof) has made a

personal on-the-lot inspection of the lot to be purchased or

leased;

(iii) each purchase or lease agreement contains -

(I) a clear and specific statement describing a good faith

estimate of the year of completion of, and the party

responsible for, providing and maintaining the roads, water

facilities, sewer facilities and any existing or promised

amenities; and

(II) a nonwaivable provision specifying that the contract

or agreement may be revoked at the option of the purchaser or

lessee until midnight of the seventh day following the

signing of such contract or agreement or until such later

time as may be required pursuant to applicable State laws;

and

(iv) the purchaser or lessee has, prior to the time the

contract or lease is entered into, acknowledged in writing the

receipt of a written statement by the developer containing good

faith estimates of the cost of providing electric, water,

sewer, gas, and telephone service to such lot.

(B) As used in subparagraph (A)(i) of this paragraph, the terms

''liens'', ''encumbrances'', and ''adverse claims'' do not

include United States land patents and similar Federal grants or

reservations, property reservations which land developers

commonly convey or dedicate to local bodies or public utilities

for the purpose of bringing public services to the land being

developed, taxes and assessments imposed by a State, by any other

public body having authority to assess and tax property, or by a

property owners' association, which, under applicable State or

local law, constitute liens on the property before they are due

and payable or beneficial property restrictions which would be

enforceable by other lot owners or lessees in the subdivision, if

-

(i) the developer, prior to the time the contract of sale or

lease is entered into, has furnished each purchaser or lessee

with a statement setting forth in descriptive and concise terms

all such liens, reservations, taxes, assessments and

restrictions which are applicable to the lot to be purchased or

leased; and

(ii) receipt of such statement has been acknowledged in

writing by the purchaser or lessee.

(C) For the purpose of this paragraph, a sales operation is

''intrastate in nature'' if the developer is subject to the laws

of the State in which the land is located, and each lot in the

subdivision, other than those which are exempt under subsection

(a), (b)(6), or (b)(8) of this section, is sold or leased to

residents of the State in which the land is located; or

(8) the sale or lease of a lot in a subdivision containing

fewer than three hundred lots if -

(A) the principal residence of the purchaser or lessee is

within the same standard metropolitan statistical area, as

defined by the Office of Management and Budget, as the lot

purchased or leased;

(B) the lot is free and clear of liens (such as mortgages,

deeds of trust, tax liens, mechanics liens, or judgments) at

the time of the signing of the contract or agreement and until

a deed is delivered to the purchaser or the lease expires. As

used in this subparagraph, the term ''liens'' does not include

(i) United States land patents and similar Federal grants or

reservations, (ii) property reservations which land developers

commonly convey or dedicate to local bodies or public utilities

for the purpose of bringing public services to the land being

developed, (iii) taxes and assessments imposed by a State, by

any other public body having authority to assess and tax

property, or by a property owners' association, which, under

applicable State or local law, constitute liens on the property

before they are due and payable or beneficial property

restrictions which would be enforceable by other lot owners or

lessees in the subdivision, or (iv) other interests described

in regulations prescribed by the Secretary;

(C) the purchaser or lessee (or spouse thereof) has made a

personal on-the-lot inspection of the lot to be purchased or

leased;

(D) each purchase or lease agreement contains (i) a clear and

specific statement describing a good faith estimate of the year

of completion of and the party responsible for providing and

maintaining the roads, water facilities, sewer facilities and

any existing or promised amenities; and (ii) a nonwaivable

provision specifying that the contract or agreement may be

revoked at the option of the purchaser or lessee until midnight

of the seventh day following the signing of such contract or

agreement or until such later time as may be required pursuant

to applicable State laws;

(E) the purchaser or lessee has, prior to the time the

contract or lease is entered into, acknowledged in writing

receipt of a written statement by the developer setting forth

(i) in descriptive and concise terms all liens, reservations,

taxes, assessments, beneficial property restrictions which

would be enforceable by other lot owners or lessees in the

subdivision, and adverse claims which are applicable to the lot

to be purchased or leased, and (ii) good faith estimates of the

cost of providing electric, water, sewer, gas, and telephone

service to such lot;

(F) the developer executes and supplies to the purchaser a

written instrument designating a person within the State of

residence of the purchaser as his agent for service of process

and acknowledging that the developer submits to the legal

jurisdiction of the State in which the purchaser or lessee

resides; and

(G) the developer executes a written affirmation to the

effect that he has complied with the provisions of this

paragraph, such affirmation to be given on a form provided by

the Secretary, which shall include the following: the name and

address of the developer; the name and address of the purchaser

or lessee; a legal description of the lot; an affirmation that

the provisions of this paragraph have been complied with; a

statement that the developer submits to the jurisdiction of

this title with regard to the sale or lease; and the signature

of the developer.

(c) Rules and regulations

The Secretary may from time to time, pursuant to rules and

regulations issued by him, exempt from any of the provisions of

this chapter any subdivision or any lots in a subdivision, if he

finds that the enforcement of this chapter with respect to such

subdivision or lots is not necessary in the public interest and for

the protection of purchasers by reason or the small amount involved

or the limited character of the public offering.

-SOURCE-

(Pub. L. 90-448, title XIV, Sec. 1403, Aug. 1, 1968, 82 Stat. 590;

Pub. L. 91-152, title IV, Sec. 411, Dec. 24, 1969, 83 Stat. 398;

Pub. L. 93-383, title VIII, Sec. 812(b), Aug. 22, 1974, 88 Stat.

736; Pub. L. 95-557, title IX, Sec. 907, Oct. 31, 1978, 92 Stat.

2127; Pub. L. 96-153, title IV, Sec. 402, Dec. 21, 1979, 93 Stat.

1123.)

-REFTEXT-

REFERENCES IN TEXT

The effective date of this subsection, referred to in subsec.

(b)(2), probably means the effective date of title IV of Pub. L.

96-153, section 402 of which amended subsec. (b) of this section

generally. For the effective date of title IV, see section 410 of

Pub. L. 96-153, set out as an Effective Date of 1979 Amendment note

under section 1701 of this title.

-MISC2-

AMENDMENTS

1979 - Subsec. (a). Pub. L. 96-153 revised existing provisions

formerly set out as pars. (1) to (11) into pars. (1) to (8) and, as

so revised, substituted provisions relating to sale or lease of

lots in a subdivision containing less than twenty-five lots, etc.,

for provisions relating to sale or lease of real estate not

pursuant to a common promotional plan to offer or sell fifty or

more lots in a subdivision, etc.

Subsec. (b). Pub. L. 96-153 revised existing provisions formerly

set out as pars. (1) to (7) into pars. (1) to (8) and, as so

revised, substituted provisions setting forth criteria respecting

sale or lease of lots subject to other statutory registration and

disclosure requirements, for provisions setting forth criteria

respecting sale or lease of lots in municipality or county with

minimum standards.

1978 - Subsec. (a)(3). Pub. L. 95-557, Sec. 907(a)(1), inserted

''condominium'' after ''commercial''.

Subsec. (a)(10). Pub. L. 95-557, Sec. 907(a)(2), inserted

''United States land patents or Federal grants and reservations

similar to United States land patents, nor to'' after ''do not

refer to''.

Subsec. (a)(11). Pub. L. 95-557, Sec. 907(a)(3), inserted ''or

which is restricted to such use by a declaration of covenants,

conditions, and restrictions which has been recorded in the

official records of the city or county in which such real estate is

located'' before ''when''.

Subsecs. (b), (c). Pub. L. 95-557, Sec. 907(b)(1), (2), added

subsec. (b) and redesignated former subsec. (b) as (c).

1974 - Subsec. (a)(11). Pub. L. 93-383 added par. (11).

1969 - Subsec. (a)(10). Pub. L. 91-152 substituted provisions

requiring a personal on-the-lot inspection of the real estate for

provisions requiring a personal inspection of the lot and

restricted definition of terms ''liens'', ''encumbrances'', and

''adverse claims'' so as not to include taxes and assessments

imposed by a State, a public body having authority to assess and

tax property, or a property owners' association, which, under the

applicable law, constitute liens before they are due and payable,

and so as not to include beneficial property restrictions

enforceable by other lot owners or lessees in the subdivision under

the specified conditions.

EFFECTIVE DATE OF 1979 AMENDMENT

Amendment by Pub. L. 96-153 effective on effective date of

regulations implementing such amendment, but in no case later than

six months following Dec. 21, 1979, except that subsec. (b)(7)

shall be effective on Dec. 21, 1979, see section 410 of Pub. L.

96-153, set out as a note under section 1701 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1703, 1708 of this title.

-CITE-

15 USC Sec. 1703 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 42 - INTERSTATE LAND SALES

-HEAD-

Sec. 1703. Requirements respecting sale or lease of lots

-STATUTE-

(a) Prohibited activities

It shall be unlawful for any developer or agent, directly or

indirectly, to make use of any means or instruments of

transportation or communication in interstate commerce, or of the

mails -

(1) with respect to the sale or lease of any lot not exempt

under section 1702 of this title -

(A) to sell or lease any lot unless a statement of record

with respect to such lot is in effect in accordance with

section 1706 of this title;

(B) to sell or lease any lot unless a printed property

report, meeting the requirements of section 1707 of this title,

has been furnished to the purchaser or lessee in advance of the

signing of any contract or agreement by such purchaser or

lessee;

(C) to sell or lease any lot where any part of the statement

of record or the property report contained an untrue statement

of a material fact or omitted to state a material fact required

to be stated therein pursuant to sections 1704 through 1707 of

this title or any regulations thereunder; or

(D) to display or deliver to prospective purchasers or

lessees advertising and promotional material which is

inconsistent with information required to be disclosed in the

property report; or

(2) with respect to the sale or lease, or offer to sell or

lease, any lot not exempt under section 1702(a) of this title -

(A) to employ any device, scheme, or artifice to defraud;

(B) to obtain money or property by means of any untrue

statement of a material fact, or any omission to state a

material fact necessary in order to make the statements made

(in light of the circumstances in which they were made and

within the context of the overall offer and sale or lease) not

misleading, with respect to any information pertinent to the

lot or subdivision;

(C) to engage in any transaction, practice, or course of

business which operates or would operate as a fraud or deceit

upon a purchaser; or

(D) to represent that roads, sewers, water, gas, or electric

service, or recreational amenities will be provided or

completed by the developer without stipulating in the contract

of sale or lease that such services or amenities will be

provided or completed.

(b) Revocation of nonexempt contract or agreement at option of

purchaser or lessee; time limit

Any contract or agreement for the sale or lease of a lot not

exempt under section 1702 of this title may be revoked at the

option of the purchaser or lessee until midnight of the seventh day

following the signing of such contract or agreement or until such

later time as may be required pursuant to applicable State laws,

and such contract or agreement shall clearly provide this right.

(c) Revocation of contract or agreement at option of purchaser or

lessee where required property report not supplied

In the case of any contract or agreement for the sale or lease of

a lot for which a property report is required by this chapter and

the property report has not been given to the purchaser or lessee

in advance of his or her signing such contract or agreement, such

contract or agreement may be revoked at the option of the purchaser

or lessee within two years from the date of such signing, and such

contract or agreement shall clearly provide this right.

(d) Additional authority for revocation of nonexempt contract or

agreement at option of purchaser or lessee; time limit;

applicability

Any contract or agreement which is for the sale or lease of a lot

not exempt under section 1702 of this title and which does not

provide -

(1) a description of the lot which makes such lot clearly

identifiable and which is in a form acceptable for recording by

the appropriate public official responsible for maintaining land

records in the jurisdiction in which the lot is located;

(2) that, in the event of a default or breach of the contract

or agreement by the purchaser or lessee, the seller or lessor (or

successor thereof) will provide the purchaser or lessee with

written notice of such default or breach and of the opportunity,

which shall be given such purchaser or lessee, to remedy such

default or breach within twenty days after the date of the

receipt of such notice; and

(3) that, if the purchaser or lessee loses rights and interest

in the lot as a result of a default or breach of the contract or

agreement which occurs after the purchaser or lessee has paid 15

per centum of the purchase price of the lot, excluding any

interest owed under the contract or agreement, the seller or

lessor (or successor thereof) shall refund to such purchaser or

lessee any amount which remains after subtracting (A) 15 per

centum of the purchase price of the lot, excluding any interest

owed under the contract or agreement, or the amount of damages

incurred by the seller or lessor (or successor thereof) as a

result of such breach, whichever is greater, from (B) the amount

paid by the purchaser or lessee with respect to the purchase

price of the lot, excluding any interest paid under the contract

or agreement,

may be revoked at the option of the purchaser or lessee for two

years from the date of the signing of such contract or agreement.

This subsection shall not apply to the sale of a lot for which,

within one hundred and eighty days after the signing of the sales

contract, the purchaser receives a warranty deed (or, where such

deed is not commonly used in the jurisdiction where the lot is

located, a deed or grant that warrants at least that the grantor

has not conveyed the lot to another person and that the lot is free

from encumbrances made by the grantor or any other person claiming

by, through, or under him or her).

(e) Repayment of purchaser or lessee upon revocation of all money

paid under contract or agreement to seller or lessor

If a contract or agreement is revoked pursuant to subsection (b),

(c), or (d) of this section, if the purchaser or lessee tenders to

the seller or lessor (or successor thereof) an instrument conveying

his or her rights and interests in the lot, and if the rights and

interests and the lot are in a condition which is substantially

similar to the condition in which they were conveyed or purported

to be conveyed to the purchaser or lessee, such purchaser or lessee

shall be entitled to all money paid by him or her under such

contract or agreement.

-SOURCE-

(Pub. L. 90-448, title XIV, Sec. 1404, Aug. 1, 1968, 82 Stat. 591;

Pub. L. 93-383, title VIII, Sec. 812(c)(1), Aug. 22, 1974, 88 Stat.

737; Pub. L. 96-153, title IV, Sec. 403, Dec. 21, 1979, 93 Stat.

1127.)

-MISC1-

AMENDMENTS

1979 - Subsec. (a). Pub. L. 96-153 substituted provisions setting

forth criteria in par. (1) with respect to the sale or lease of any

lot not exempt under section 1702 of this title, for provisions

relating to the sale or lease of any lot in any subdivision with

accompanying required statement of record and printed property

report, and in par. (2) with respect to the sale or lease, or offer

to sell or lease, any lot not exempt under section 1702(a) of this

title, for provisions relating to the sale or lease, or offer to

sell or lease, any lot in a subdivision through the use of

specified prohibited activities.

Subsec. (b). Pub. L. 96-153 substituted provisions relating to

revocation of contracts or agreements for the sale or lease of a

lot not exempt under section 1702 of this title, for provisions

relating to voidability of contracts or agreements for the purchase

or lease of lots in subdivisions covered by this chapter.

Subsecs. (c) to (e). Pub. L. 96-153 added subsecs. (c) to (e).

1974 - Subsec. (b). Pub. L. 383 substituted ''until midnight of

the third business day following the consummation of the

transaction'' for ''within forty-eight hours'' and struck out

provisions relating to exceptions of contracts or agreements

stipulating to the nonapplicability of the revocation authority to

certain purchasers.

EFFECTIVE DATE OF 1979 AMENDMENT

Amendment by Pub. L. 96-153 effective on effective date of

regulations implementing such amendment, but in no case later than

six months following Dec. 21, 1979, see section 410 of Pub. L.

96-153, set out as a note under section 1701 of this title.

EFFECTIVE DATE OF 1974 AMENDMENT

Section 812(c)(2) of Pub. L. 93-383 provided that: ''The

amendments made by paragraph (1) (amending this section) shall be

effective sixty days after the date of the enactment of this Act

(Aug. 22, 1974).''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1702, 1709, 1711 of this

title.

-CITE-

15 USC Sec. 1704 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 42 - INTERSTATE LAND SALES

-HEAD-

Sec. 1704. Registration of subdivisions

-STATUTE-

(a) Filing of statement of record

A subdivision may be registered by filing with the Secretary a

statement of record, meeting the requirements of this chapter and

such rules and regulations as may be prescribed by the Secretary in

furtherance of the provisions of this chapter. A statement of

record shall be deemed effective only as to the lots specified

therein.

(b) Payment of fees; use by Secretary

At the time of filing a statement of record, or any amendment

thereto, the developer shall pay to the Secretary a fee, not in

excess of $1,000, in accordance with a schedule to be fixed by the

regulations of the Secretary, which fees may be used by the

Secretary to cover all or part of the cost of rendering services

under this chapter, and such expenses as are paid from such fees

shall be considered nonadministrative.

(c) Filing deemed to have taken place upon receipt of statement of

record accompanied by fee

The filing with the Secretary of a statement of record, or of an

amendment thereto, shall be deemed to have taken place upon the

receipt thereof, accompanied by payment of the fee required by

subsection (b) of this section.

(d) Availability of information to public

The information contained in or filed with any statement of

record shall be made available to the public under such regulations

as the Secretary may prescribe and copies thereof shall be

furnished to every applicant at such reasonable charge as the

Secretary may prescribe.

-SOURCE-

(Pub. L. 90-448, title XIV, Sec. 1405, Aug. 1, 1968, 82 Stat. 592.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1702, 1703, 1708 of this

title.

-CITE-

15 USC Sec. 1705 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 42 - INTERSTATE LAND SALES

-HEAD-

Sec. 1705. Information required in statement of record

-STATUTE-

The statement of record shall contain the information and be

accompanied by the documents specified hereinafter in this section

-

(1) the name and address of each person having an interest in

the lots in the subdivision to be covered by the statement of

record and the extent of such interest;

(2) a legal description of, and a statement of the total area

included in, the subdivision and a statement of the topography

thereof, together with a map showing the division proposed and

the dimensions of the lots to be covered by the statement of

record and their relation to existing streets and roads;

(3) a statement of the condition of the title to the land

comprising the subdivision, including all encumbrances and deed

restrictions and covenants applicable thereto;

(4) a statement of the general terms and conditions, including

the range of selling prices or rents at which it is proposed to

dispose of the lots in the subdivision;

(5) a statement of the present condition of access to the

subdivision, the existence of any unusual conditions relating to

noise or safety which affect the subdivision and are known to the

developer, the availability of sewage disposal facilities and

other public utilities (including water, electricity, gas, and

telephone facilities) in the subdivision, the proximity in miles

of the subdivision to nearby municipalities, and the nature of

any improvements to be installed by the developer and his

estimated schedule for completion;

(6) in the case of any subdivision or portion thereof against

which there exists a blanket encumbrance, a statement of the

consequences for an individual purchaser of a failure, by the

person or persons bound, to fulfill obligations under the

instrument or instruments creating such encumbrance and the

steps, if any, taken to protect the purchaser in such

eventuality;

(7)(A) copy of its articles of incorporation, with all

amendments thereto, if the developer is a corporation; (B) copies

of all instruments by which the trust is created or declared, if

the developer is a trust; (C) copies of its articles of

partnership or association and all other papers pertaining to its

organization, if the developer is a partnership, unincorporated

association, joint stock company, or any other form of

organization; and (D) if the purported holder of legal title is a

person other than developer, copies of the above documents for

such person;

(8) copies of the deed or other instrument establishing title

to the subdivision in the developer or other person and copies of

any instrument creating a lien or encumbrance upon the title of

developer or other person or copies of the opinion or opinions of

counsel in respect to the title to the subdivision in the

developer or other person or copies of the title insurance policy

guaranteeing such title;

(9) copies of all forms of conveyance to be used in selling or

leasing lots to purchasers;

(10) copies of instruments creating easements or other

restrictions;

(11) such certified and uncertified financial statements of the

developer as the Secretary may require; and

(12) such other information and such other documents and

certifications as the Secretary may require as being reasonably

necessary or appropriate for the protection of purchasers.

-SOURCE-

(Pub. L. 90-448, title XIV, Sec. 1406, Aug. 1, 1968, 82 Stat. 592;

Pub. L. 91-609, title IX, Sec. 909, Dec. 31, 1970, 84 Stat. 1811.)

-MISC1-

AMENDMENTS

1970 - Par. (5). Pub. L. 91-609 required the statement of record

to contain a statement of the existence of any unusual conditions

relating to noise or safety which affect the subdivision and are

known to the developer.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1702, 1707, 1708 of this

title.

-CITE-

15 USC Sec. 1706 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 42 - INTERSTATE LAND SALES

-HEAD-

Sec. 1706. Effective date of statements of record and amendments

thereto

-STATUTE-

(a) Thirtieth day after filing or such earlier date as determined

by Secretary; consolidation of subsequent statement with

earlier recording

Except as hereinafter provided, the effective date of a statement

of record, or any amendment thereto, shall be the thirtieth day

after the filing thereof or such earlier date as the Secretary may

determine, having due regard to the public interest and the

protection of purchasers. If any amendment to any such statement

is filed prior to the effective date of the statement, the

statement shall be deemed to have been filed when such amendment

was filed; except that such an amendment filed with the consent of

the Secretary, or filed pursuant to an order of the Secretary,

shall be treated as being filed as of the date of the filing of the

statement of record. When a developer records additional lands to

be offered for disposition, he may consolidate the subsequent

statement of record with any earlier recording offering subdivided

land for disposition under the same promotional plan. At the time

of consolidation the developer shall include in the consolidated

statement of record any material changes in the information

contained in the earlier statement.

(b) Incomplete or inaccurate statements of record

If it appears to the Secretary that a statement of record, or any

amendment thereto, is on its face incomplete or inaccurate in any

material respect, the Secretary shall so advise the developer

within a reasonable time after the filing of the statement or the

amendment, but prior to the date the statement or amendment would

otherwise be effective. Such notification shall serve to suspend

the effective date of the statement or the amendment until thirty

days after the developer files such additional information as the

Secretary shall require. Any developer, upon receipt of such

notice, may request a hearing, and such hearing shall be held

within twenty days of receipt of such request by the Secretary.

(c) Amendment of statement of record

If, at any time subsequent to the effective date of a statement

of record, a change shall occur affecting any material fact

required to be contained in the statement, the developer shall

promptly file an amendment thereto. Upon receipt of any such

amendment, the Secretary may, if he determines such action to be

necessary or appropriate in the public interest or for the

protection of purchasers, suspend the statement of record until the

amendment becomes effective.

(d) Suspension of statement of record containing untrue statement

or omission to state material fact; notice and hearing;

termination of order of suspension

If it appears to the Secretary at any time that a statement of

record, which is in effect, includes any untrue statement of a

material fact or omits to state any material fact required to be

stated therein or necessary to make the statements therein not

misleading, the Secretary may, after notice, and after opportunity

for hearing (at a time fixed by the Secretary) within fifteen days

after such notice, issue an order suspending the statement of

record. When such statement has been amended in accordance with

such order, the Secretary shall so declare and thereupon the order

shall cease to be effective.

(e) Examination to determine issuance of order; access to records;

order suspending statement of record upon failure to cooperate

The Secretary is hereby empowered to make an examination in any

case to determine whether an order should issue under subsection

(d) of this section. In making such examination, the Secretary or

anyone designated by him shall have access to and may demand the

production of any books and papers of, and may administer oaths and

affirmations to and examine, the developer, any agents or any other

person, in respect of any matter relevant to the examination. If

the developer or any agents shall fail to cooperate, or shall

obstruct or refuse to permit the making of an examination, such

conduct shall be proper ground for the issuance of an order

suspending the statement of record.

(f) Service of notices

Any notice required under this section shall be sent to or served

on the developer or his authorized agent.

-SOURCE-

(Pub. L. 90-448, title XIV, Sec. 1407, Aug. 1, 1968, 82 Stat. 593.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1702, 1703, 1708 of this

title.

-CITE-

15 USC Sec. 1707 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 42 - INTERSTATE LAND SALES

-HEAD-

Sec. 1707. Property report

-STATUTE-

(a) Contents of report

A property report relating to the lots in a subdivision shall

contain such of the information contained in the statement of

record, and any amendments thereto, as the Secretary may deem

necessary, but need not include the documents referred to in

paragraphs (7) to (11), inclusive, of section 1705 of this title.

A property report shall also contain such other information as the

Secretary may by rules or regulations require as being necessary or

appropriate in the public interest or for the protection of

purchasers.

(b) Promotional use

The property report shall not be used for any promotional

purposes before the statement of record becomes effective and then

only if it is used in its entirety. No person may advertise or

represent that the Secretary approves or recommends the subdivision

or the sale or lease of lots therein. No portion of the property

report shall be underscored, italicized, or printed in larger or

bolder type than the balance of the statement unless the Secretary

requires or permits it.

-SOURCE-

(Pub. L. 90-448, title XIV, Sec. 1408, Aug. 1, 1968, 82 Stat. 594.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1702, 1703, 1708 of this

title.

-CITE-

15 USC Sec. 1708 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 42 - INTERSTATE LAND SALES

-HEAD-

Sec. 1708. Certification of substantially equivalent State law

-STATUTE-

(a) Criteria; request by State

(1) A State shall be certified if the Secretary determines -

(A) that, when taken as a whole, the laws and regulations of

the State applicable to the sale or lease of lots not exempt

under section 1702 of this title require the seller or lessor of

such lots to disclose information which is at least substantially

equivalent to the information required to be disclosed by section

1707 of this title; and

(B) that the State's administration of such laws and

regulations provides, to the maximum extent practicable, that

such information is accurate.

(2) In the case of any State which is not certified under

paragraph (1), such State shall be certified if the Secretary

determines -

(A) that, when taken as a whole, the laws and regulations of

the State applicable to the sale or lease of lots not exempt

under section 1702 of this title provide sufficient protection

for purchasers and lessees with respect to the matters for which

information is required to be disclosed by section 1707 of this

title but which is not required to be disclosed by such State's

laws and regulations; and

(B) that the State's administration of such laws and

regulations provides, to the maximum extent practicable, that (i)

information required to be disclosed by such laws and regulations

is accurate, and (ii) sufficient protection for purchasers and

lessees is made available with respect to the matters for which

information is not required to be disclosed.

(3) Any State requesting certification must agree to accept a

property report covering land located in another certified State

but offered for sale or lease in the State requesting certification

if the property report has been approved by the other certified

State. Such property report shall be the only property report

required by the State with respect to the sale or lease of such

land.

(b) Filing of State disclosure materials and related documentation

for purposes of Federal statement of record and property report

requirements; acceptance by Secretary

After the Secretary has certified a State under subsection (a) of

this section, the Secretary shall accept for filing under sections

1704 through 1707 of this title (and declare effective as the

Federal statement of record and property report which shall be used

in all States in which the lots are offered for sale or lease)

disclosure materials found acceptable, and any related

documentation required, by State authorities in connection with the

sale or lease of lots located within the State. The Secretary may

accept for such filing, and declare effective as the Federal

statement of record and property report, such materials and

documentation found acceptable by the State in connection with the

sale or lease of lots located outside that State. Nothing in this

subsection shall preclude the Secretary from exercising the

authority conferred by subsections (d) and (e) of section 1706 of

this title.

(c) Notice to State upon failure to meet requirements and remedial

action necessary for certification

If a State fails to meet the standards for certification pursuant

to subsection (a) of this section, the Secretary shall notify the

State in writing of the changes in State law, regulation, or

administration that are needed in order to obtain certification.

(d) Periodic review of certified States' laws, regulations, and

administration; withdrawal of certification

The Secretary shall periodically review the laws and regulations,

and the administration thereof, of States certified under

subsection (a) of this section, and may withdraw such certification

upon a determination that such laws, regulations, and the

administration thereof, taken as a whole, no longer meet the

requirements of subsection (a) of this section.

(e) State and local governmental authorities affected; cooperation

with State authorities

Nothing in this chapter may be construed to prevent or limit the

authority of any State or local government to enact and enforce

with regard to the sale of land any law, ordinance, or code not in

conflict with this chapter. In administering this chapter, the

Secretary shall cooperate with State authorities charged with the

responsibility of regulating the sale or lease of lots which are

subject to this chapter.

-SOURCE-

(Pub. L. 90-448, title XIV, Sec. 1409, Aug. 1, 1968, 82 Stat. 594;

Pub. L. 96-153, title IV, Sec. 404, Dec. 21, 1979, 93 Stat. 1129.)

-MISC1-

AMENDMENTS

1979 - Subsec. (a). Pub. L. 96-153 substituted provisions setting

forth criteria for determinations respecting certifications of

substantially equivalent State law for purposes of disclosure

requirements of this chapter, for provisions relating to

cooperation with State authorities in administering this chapter.

Subsec. (b). Pub. L. 96-153 substituted provisions relating to

filing requirements for State disclosure materials and related

documentation for purposes of Federal statement of record and

property report requirements, for provisions relating to the

jurisdiction of the particular State real estate commission or

similar body.

Subsecs. (c) to (e). Pub. L. 96-153 added subsecs. (c) to (e).

EFFECTIVE DATE OF 1979 AMENDMENT

Amendment by Pub. L. 96-153 effective on effective date of

regulations implementing such amendment, but in no case later than

six months following Dec. 21, 1979, see section 410 of Pub. L.

96-153, set out as a note under section 1701 of this title.

-CITE-

15 USC Sec. 1709 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 42 - INTERSTATE LAND SALES

-HEAD-

Sec. 1709. Civil liabilities

-STATUTE-

(a) Violations; relief recoverable

A purchaser or lessee may bring an action at law or in equity

against a developer or agent if the sale or lease was made in

violation of section 1703(a) of this title. In a suit authorized

by this subsection, the court may order damages, specific

performance, or such other relief as the court deems fair, just,

and equitable. In determining such relief the court may take into

account, but not be limited to, the following factors: the contract

price of the lot or leasehold; the amount the purchaser or lessee

actually paid; the cost of any improvements to the lot; the fair

market value of the lot or leasehold at the time relief is

determined; and the fair market value of the lot or leasehold at

the time such lot was purchased or leased.

(b) Enforcement of rights by purchaser or lessee

A purchaser or lessee may bring an action at law or in equity

against the seller or lessor (or successor thereof) to enforce any

right under subsection (b), (c), (d), or (e) of section 1703 of

this title.

(c) Amounts recoverable

The amount recoverable in a suit authorized by this section may

include, in addition to matters specified in subsections (a) and

(b) of this section, interest, court costs, and reasonable amounts

for attorneys' fees, independent appraisers' fees, and travel to

and from the lot.

(d) Contributions

Every person who becomes liable to make any payment under this

section may recover contribution as in cases of contract from any

person who, if sued separately, would have been liable to make the

same payment.

-SOURCE-

(Pub. L. 90-448, title XIV, Sec. 1410, Aug. 1, 1968, 82 Stat. 595;

Pub. L. 96-153, title IV, Sec. 405, Dec. 21, 1979, 93 Stat. 1130.)

-MISC1-

AMENDMENTS

1979 - Subsec. (a). Pub. L. 96-153 substituted provisions

relating to violations of section 1703(a) of this title and scope

of relief authorized in suits brought against such violations, for

provisions relating to suits for untrue statements or omissions to

state material fact in statement of record.

Subsec. (b). Pub. L. 96-153 substituted provisions relating to

enforcement of rights by the purchaser or lessee against the seller

or lessor, for provisions relating to suits by the purchaser

against the developer or agent.

Subsec. (c). Pub. L. 96-153 substituted provisions authorizing

interest, court costs, etc., to be recoverable in suits under this

section, for provisions relating to enumeration of damages

recoverable in suits under this section.

Subsec. (d). Pub. L. 96-153 reenacted provisions without change.

Subsec. (e). Pub. L. 96-153 struck out subsec. (e) which set

forth limitation on amount recoverable under this section.

EFFECTIVE DATE OF 1979 AMENDMENT

Amendment by Pub. L. 96-153 effective on effective date of

regulations implementing such amendment, but in no case later than

six months following Dec. 21, 1979, see section 410 of Pub. L.

96-153, set out as a note under section 1701 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1711 of this title.

-CITE-

15 USC Sec. 1710 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 42 - INTERSTATE LAND SALES

-HEAD-

Sec. 1710. Court review of orders

-STATUTE-

(a) Petition; jurisdiction; findings of Secretary; additional

evidence; finality

Any person, aggrieved by an order or determination of the

Secretary issued after a hearing, may obtain a review of such order

or determination in the court of appeals of the United States,

within any circuit wherein such person resides or has his principal

place of business, or in the United States Court of Appeals for the

District of Columbia, by filing in such court, within sixty days

after the entry of such order or determination, a written petition

praying that the order or determination of the Secretary be

modified or be set aside in whole or in part. A copy of such

petition shall be forthwith transmitted by the clerk of the court

to the Secretary, and thereupon the Secretary shall file in the

court the record upon which the order or determination complained

of was entered, as provided in section 2112 of title 28. No

objection to an order or determination of the Secretary shall be

considered by the court unless such objection shall have been urged

before the Secretary. The finding of the Secretary as to the facts,

if supported by substantial evidence, shall be conclusive. If

either party shall apply to the court for leave to adduce

additional evidence, and shall show to the satisfaction of the

court that such additional evidence is material and that there were

reasonable grounds for failure to adduce such evidence in the

hearing before the Secretary, the court may order such additional

evidence to be taken before the Secretary and to be adduced upon a

hearing in such manner and upon such terms and conditions as to the

court may seem proper. The Secretary may modify his findings as to

the facts by reason of the additional evidence so taken, and shall

file such modified or new findings, which, if supported by

substantial evidence, shall be conclusive, and his recommendation,

if any, for the modification or setting aside of the original

order. Upon the filing of such petition, the jurisdiction of the

court shall be exclusive and its judgment and decree, affirming,

modifying, or setting aside, in whole or in part, any order of the

Secretary, shall be final, subject to review by the Supreme Court

of the United States upon certiorari or certification as provided

in section 1254 of title 28.

(b) Stay of Secretary's order

The commencement of proceedings under subsection (a) of this

section shall not, unless specifically ordered by the court,

operate as a stay of the Secretary's order.

-SOURCE-

(Pub. L. 90-448, title XIV, Sec. 1411, Aug. 1, 1968, 82 Stat. 595.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1717a of this title.

-CITE-

15 USC Sec. 1711 01/06/03

-EXPCITE-

TITLE 15 - COMMERCE AND TRADE

CHAPTER 42 - INTERSTATE LAND SALES

-HEAD-

Sec. 1711. Limitation of actions

-STATUTE-

(a) Section 1703(a) violations

No action shall be maintained under section 1709 of this title

with respect to -

(1) a violation of subsection (a)(1) or (a)(2)(D) of section

1703 of this title more than three years after the date of

signing of the contract of sale or lease; or

(2) a violation of subsection (a)(2)(A), (a)(2)(B), or

(a)(2)(C) of section 1703 of this title more than three years

after discovery of the violation or after discovery should have

been made by the exercise of reasonable diligence.

(b) Section 1703(b) to (e) violations

No action shall be maintained under section 1709 of this title to

enforce a right created under subsection (b), (c), (d), or (e) of

section 1703 of this title unless brought within three years after

the signing of the contract or lease, notwithstanding delivery of a

deed to a purchaser.

-SOURCE-

(Pub. L. 90-448, title XIV, Sec. 1412, Aug. 1, 1968, 82 Stat. 596;

Pub. L. 96-153, title IV, Sec. 406, Dec. 21, 1979, 93 Stat. 1131.)

-MISC1-

AMENDMENTS

1979 - Pub. L. 96-153 designated existing provisions as subsec.

(a), substituted provisions setting forth limitations relating to

any action maintained under section 1709 of this title, for

provisions setting forth limitations relating to any action

maintained to enforce any liability created under section 1709(a)

or (b)(2) of this title, and added subsec. (b).

EFFECTIVE DATE OF 1979 AMENDMENT

Amendment by Pub. L. 96-153 effective on effective date of

regulations implementing such amendment, but in no case later than

six months following Dec. 21, 1979, see section 410 of Pub. L.

96-153, set out as a note under section 1701 of this title.

-CITE-

15 USC Sec. 1712 01/06/03

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TITLE 15 - COMMERCE AND TRADE

CHAPTER 42 - INTERSTATE LAND SALES

-HEAD-

Sec. 1712. Contrary stipulations void

-STATUTE-

Any condition, stipulation, or provision binding any person

acquiring any lot in a subdivision to waive compliance with any

provision of this chapter or of the rules and regulations of the

Secretary shall be void.

-SOURCE-

(Pub. L. 90-448, title XIV, Sec. 1413, Aug. 1, 1968, 82 Stat. 596.)

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15 USC Sec. 1713 01/06/03

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TITLE 15 - COMMERCE AND TRADE

CHAPTER 42 - INTERSTATE LAND SALES

-HEAD-

Sec. 1713. Additional remedies

-STATUTE-

The rights and remedies provided by this chapter shall be in

addition to any and all other rights and remedies that may exist at

law or in equity.

-SOURCE-

(Pub. L. 90-448, title XIV, Sec. 1414, Aug. 1, 1968, 82 Stat. 596.)

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15 USC Sec. 1714 01/06/03

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TITLE 15 - COMMERCE AND TRADE

CHAPTER 42 - INTERSTATE LAND SALES

-HEAD-

Sec. 1714. Investigations, injunctions, and prosecution of offenses

-STATUTE-

(a) Permanent or temporary injunction or restraining order;

jurisdiction

Whenever it shall appear to the Secretary that any person is

engaged or about to engage in any acts or practices which

constitute or will constitute a violation of the provisions of this

chapter, or of any rule or regulation prescribed pursuant thereto,

he may, in his discretion, bring an action in any district court of

the United States, or the United States District Court for the

District of Columbia to enjoin such acts or practices, and, upon a

proper showing, a permanent or temporary injunction or restraining

order shall be granted without bond. The Secretary may transmit

such evidence as may be available concerning such acts or practices

to the Attorney General who may, in his discretion, institute the

appropriate criminal proceedings under this chapter.

(b) Investigations; publication of information concerning

violations

The Secretary may, in his discretion, make such investigations as

he deems necessary to determine whether any person has violated or

is about to violate any provision of this chapter or any rule or

regulation prescribed pursuant thereto, and may require or permit

any person to file with him a statement in writing, under oath or

otherwise as the Secretary shall determine, as to all the facts and

circumstances concerning the matter to be investigated. The

Secretary is authorized, in his discretion, to publish information

concerning any such violations, and to investigate any facts,

conditions, practices, or matters which he may deem necessary or

proper to aid in the enforcement of the provisions of this chapter,

in the prescribing of rules and regulations thereunder, or in

securing information to serve as a basis for recommending further

legislation concerning the matters to which this chapter relates.

(c) Oaths and affirmations; subpena power

For the purpose of any such investigation, or any other

proceeding under this chapter; the Secretary, or any officer

designated by him, is empowered to administer oaths and

affirmations, subpena witnesses, compel their attendance, take

evidence, and require the production of any books, papers,

correspondence, memorandums, or other records which the Secretary

deems relevant or material to the inquiry. Such attendance of

witnesses and the production of any such records may be required

from any place in the United States or any State at any designated

place of hearing.

(d) Contempt; court order requiring attendance and testimony of

witnesses; jurisdiction

In case of contumacy by, or refusal to obey a subpena issued to,

any person, the Secretary may invoke the aid of any court of the

United States within the jurisdiction of which such investigation

or proceeding is carried on, or where such person resides or

carries on business, in requiring the attendance and testimony of

witnesses and the production of books, papers, correspondence,

memorandums, and other records and documents. And such court may

issue an order requiring such person to appear before the Secretary

or any officer designated by the Secretary, there to produce

records, if so ordered, or to give testimony touching the matter

under investigation or in question; and any failure to obey such

order of the court may be punished by such court as a contempt

thereof. All process in any such case may be served in the

judicial district whereof such person is an inhabitant or wherever

he may be found.

-SOURCE-

(Pub. L. 90-448, title XIV, Sec. 1415, Aug. 1, 1968, 82 Stat. 596;

Pub. L. 91-452, title II, Sec. 220, Oct. 15, 1970, 84 Stat. 929.)

-MISC1-

AMENDMENTS

1970 - Subsec. (e). Pub. L. 91-452 struck out subsec. (e) which

related to the immunity from prosecution of any individual

compelled to testify or produce evidence, documentary or otherwise,

after claiming his privilege against self-incrimination.

EFFECTIVE DATE OF 1970 AMENDMENT

For effective date of amendment by Pub. L. 91-452, and for

amendment not to affect any immunity to which any individual is

entitled under this section by reason of any testimony given before

sixtieth day following Oct. 15, 1970, see section 260 of Pub. L.

91-452, set out as an Effective Date; Savings Provision note under

section 6001 of Title 18, Crimes and Criminal Procedure.

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15 USC Sec. 1715 01/06/03

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TITLE 15 - COMMERCE AND TRADE

CHAPTER 42 - INTERSTATE LAND SALES

-HEAD-

Sec. 1715. Administration

-STATUTE-

(a) Delegation of functions, duties, and powers; scope of

delegations; appointment, etc., of delegates; right of appeal

The authority and responsibility for administering this chapter

shall be in the Secretary of Housing and Urban Development who may

delegate any of his functions, duties, and powers to employees of

the Department of Housing and Urban Development or to boards of

such employees, including functions, duties, and powers with

respect to investigating, hearing, determining, ordering, or

otherwise acting as to any work, business, or matter under this

chapter. The persons to whom such delegations are made with

respect to hearing functions, duties, and powers shall be appointed

and shall serve in the Department in compliance with sections 3105,

3344, 5372, and 7521 of title 5. The Secretary shall by rule

prescribe such rights of appeal from the decisions of his

administrative law judges to other administrative law judges or to

other officers in the Department, to boards of officers or to

himself, as shall be appropriate and in accordance with law.

(b) Hearings

All hearings shall be public and appropriate records thereof

shall be kept, and any order issued after such hearing shall be

based on the record made in such hearing which shall be conducted

in accordance with the provisions of subchapter II of chapter 5,

and chapter 7, of title 5.

(c) Procedures applicable

The Secretary shall conduct all actions with respect to

rulemaking or adjudication under this chapter in accordance with

the provisions of chapter 5 of title 5. Notice shall be given of

any adverse action or final disposition and such notice and the

entry of any order shall be accompanied by a written statement of

supporting facts and legal authority.

-SOURCE-

(Pub. L. 90-448, title XIV, Sec. 1416, Aug. 1, 1968, 82 Stat. 597;

Pub. L. 95-251, Sec. 2(a)(5), Mar. 27, 1978, 92 Stat. 183; Pub. L.

95-454, title VIII, Sec. 801(a)(3)(J), Oct. 13, 1978, 92 Stat.

1222; Pub. L. 96-153, title IV, Sec. 407, Dec. 21, 1979, 93 Stat.

1131; Pub. L. 98-479, title II, Sec. 202(d), Oct. 17, 1984, 98

Stat. 2228.)

-MISC1-

AMENDMENTS

1984 - Subsec. (b). Pub. L. 98-479 substituted ''subchapter II of

chapter 5, and chapter 7, of title 5'' for ''the Administrative

Procedure Act''.

1979 - Subsec. (c). Pub. L. 96-153 added subsec. (c).

1978 - Subsec. (a). Pub. L. 95-454 substituted ''5372'' for

''5362''.

Pub. L. 95-251 substituted ''administrative law judges'' for

''hearing examiners'' wherever appearing.

EFFECTIVE DATE OF 1979 AMENDMENT

Amendment by Pub. L. 96-153 effective on effective date of

regulations implementing such amendment, but in no case later than

six months following Dec. 21, 1979, see section 410 of Pub. L.

96-153, set out as a note under section 1701 of this title.

EFFECTIVE DATE OF 1978 AMENDMENT

Amendment by Pub. L. 95-454 effective on first day of first

applicable pay period beginning on or after 90th day after Oct. 13,

1978, see section 801(a)(4) of Pub. L. 95-454, set out as a note

under section 5361 of Title 5, Government Organization and

Employees.

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15 USC Sec. 1716 01/06/03

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TITLE 15 - COMMERCE AND TRADE

CHAPTER 42 - INTERSTATE LAND SALES

-HEAD-

Sec. 1716. Unlawful representations

-STATUTE-

The fact that a statement of record with respect to a subdivision

has been filed or is in effect shall not be deemed a finding by the

Secretary that the statement of record is true and accurate on its

face, or be held to mean the Secretary has in any way passed upon

the merits of, or given approval to, such subdivision. It shall be

unlawful to make, or cause to be made, to any prospective purchaser

any representation contrary to the foregoing.

-SOURCE-

(Pub. L. 90-448, title XIV, Sec. 1417, Aug. 1, 1968, 82 Stat. 598.)

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15 USC Sec. 1717 01/06/03

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TITLE 15 - COMMERCE AND TRADE

CHAPTER 42 - INTERSTATE LAND SALES

-HEAD-

Sec. 1717. Penalties for violations

-STATUTE-

Any person who willfully violates any of the provisions of this

chapter, or the rules and regulations prescribed pursuant thereto,

or any person who willfully, in a statement of record filed under,

or in a property report issued pursuant to, this chapter, makes any

untrue statement of a material fact or omits to state any material

fact required to be stated therein, shall upon conviction be fined

not more than $10,000 or imprisoned not more than five years, or

both.

-SOURCE-

(Pub. L. 90-448, title XIV, Sec. 1418, Aug. 1, 1968, 82 Stat. 598;

Pub. L. 96-153, title IV, Sec. 408, Dec. 21, 1979, 93 Stat. 1132.)

-MISC1-

AMENDMENTS

1979 - Pub. L. 96-153 substituted ''$10,000'' for ''$5,000''.

EFFECTIVE DATE OF 1979 AMENDMENT

Amendment by Pub. L. 96-153 effective on effective date of

regulations implementing such amendment, but in no case later than

six months following Dec. 21, 1979, see section 410 of Pub. L.

96-153, set out as a note under section 1701 of this title.

-CITE-

15 USC Sec. 1717a 01/06/03

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TITLE 15 - COMMERCE AND TRADE

CHAPTER 42 - INTERSTATE LAND SALES

-HEAD-

Sec. 1717a. Civil money penalties

-STATUTE-

(a) In general

(1) Authority

Whenever any person knowingly and materially violates any of

the provisions of this chapter or any rule, regulation, or order

issued under this chapter, the Secretary may impose a civil money

penalty on such person in accordance with the provisions of this

section. The penalty shall be in addition to any other available

civil remedy or any available criminal penalty, and may be

imposed whether or not the Secretary imposes other administrative

sanctions.

(2) Amount of penalty

The amount of the penalty, as determined by the Secretary, may

not exceed $1,000 for each violation, except that the maximum

penalty for all violations by a particular person during any

1-year period shall not exceed $1,000,000. Each violation of this

chapter, or any rule, regulation, or order issued under this

chapter, shall constitute a separate violation with respect to

each sale or lease or offer to sell or lease. In the case of a

continuing violation, as determined by the Secretary, each day

shall constitute a separate violation.

(b) Agency procedures

(1) Establishment

The Secretary shall establish standards and procedures

governing the imposition of civil money penalties under

subsection (a) of this section. The standards and procedures -

(A) shall provide for the imposition of a penalty only after

a person has been given an opportunity for a hearing on the

record; and

(B) may provide for review by the Secretary of any

determination or order, or interlocutory ruling, arising from a

hearing.

(2) Final orders

If no hearing is requested within 15 days of receipt of the

notice of opportunity for hearing, the imposition of the penalty

shall constitute a final and unappealable determination. If the

Secretary reviews the determination or order, the Secretary may

affirm, modify, or reverse that determination or order. If the

Secretary does not review the determination or order within 90

days of the issuance of the determination or order, the

determination or order shall be final.

(3) Factors in determining amount of penalty

In determining the amount of a penalty under subsection (a) of

this section, consideration shall be given to such factors as the

gravity of the offense, any history of prior offenses (including

offenses occurring before December 15, 1989), ability to pay the

penalty, injury to the public, benefits received, deterrence of

future violations, and such other factors as the Secretary may

determine in regulations to be appropriate.

(4) Reviewability of imposition of penalty

The Secretary's determination or order imposing a penalty under

subsection (a) of this section shall not be subject to review,

except as provided in subsection (c) of this section.

(c) Judicial review of agency determination

(1) In general

After exhausting all administrative remedies established by the

Secretary under subsection (b)(1) of this section, a person

aggrieved by a final order of the Secretary assessing a penalty

under this section may seek judicial review pursuant to section

1710 of this title.

(2) Order to pay penalty

Notwithstanding any other provision of law, in any such review,

the court shall have the power to order payment of the penalty

imposed by the Secretary.

(d) Action to collect penalty

If any person fails to comply with the determination or order of

the Secretary imposing a civil money penalty under subsection (a)

of this section, after the determination or order is no longer

subject to review as provided by subsections (b) and (c) of this

section, the Secretary may request the Attorney General of the

United States to bring an action in any appropriate United States

district court to obtain a monetary judgment against the person and

such other relief as may be available. The monetary judgment may,

in the discretion of the court, include any attorneys fees and

other expenses incurred by the United States in connection with the

action. In an action under this subsection, the validity and

appropriateness of the Secretary's determination or order imposing

the penalty shall not be subject to review.

(e) Settlement by Secretary

The Secretary may compromise, modify, or remit any civil money

penalty which may be, or has been, imposed under this section.

(f) ''Knowingly'' defined

The term ''knowingly'' means having actual knowledge of or acting

with deliberate ignorance of or reckless disregard for the

prohibitions under this section.

(g) Regulations

The Secretary shall issue such regulations as the Secretary deems

appropriate to implement this section.

(h) Use of penalties for administration

Civil money penalties collected under this section shall be paid

to the Secretary and, upon approval in an appropriation Act, may be

used by the Secretary to cover all or part of the cost of rendering

services under this chapter.

-SOURCE-

(Pub. L. 90-448, title XIV, Sec. 1418a, as added Pub. L. 101-235,

title I, Sec. 111(a), Dec. 15, 1989, 103 Stat. 2014.)

-MISC1-

EFFECTIVE DATE

Section 111(b) of Pub. L. 101-235 provided that: ''The amendment

made by subsection (a) (enacting this section) shall apply only

with respect to -

''(1) violations referred to in the amendment that occur on or

after the effective date of this section (Dec. 15, 1989); and

''(2) in the case of a continuing violation (as determined by

the Secretary of Housing and Urban Development), any portion of

violation referred to in the amendment that occurs on or after

such date.''

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15 USC Sec. 1718 01/06/03

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TITLE 15 - COMMERCE AND TRADE

CHAPTER 42 - INTERSTATE LAND SALES

-HEAD-

Sec. 1718. Rules, regulations, and orders

-STATUTE-

The Secretary shall have authority from time to time to make,

issue, amend, and rescind such rules and regulations and such

orders as are necessary or appropriate to the exercise of the

functions and powers conferred upon him elsewhere in this chapter.

For the purpose of his rules and regulations, the Secretary may

classify persons and matters within his jurisdiction and prescribe

different requirements for different classes of persons or matters.

-SOURCE-

(Pub. L. 90-448, title XIV, Sec. 1419, Aug. 1, 1968, 82 Stat. 598.)

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15 USC Sec. 1719 01/06/03

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TITLE 15 - COMMERCE AND TRADE

CHAPTER 42 - INTERSTATE LAND SALES

-HEAD-

Sec. 1719. Jurisdiction of offenses and suits

-STATUTE-

The district courts of the United States, the United States

courts of any territory, and the United States District Court for

the District of Columbia shall have jurisdiction of offenses and

violations under this chapter and under the rules and regulations

prescribed by the Secretary pursuant thereto, and concurrent with

State courts, of all suits in equity and actions at law brought to

enforce any liability or duty created by this chapter. Any such

suit or action may be brought to enforce any liability or duty

created by this chapter. Any such suit or action may be brought in

the district wherein the defendant is found or is an inhabitant or

transacts business, or in the district where the offer or sale took

place, if the defendant participated therein, and process in such

cases may be served in any other district of which the defendant is

an inhabitant or wherever the defendant may be found. Judgments

and decrees so rendered shall be subject to review as provided in

sections 1254 and 1291 of title 28. No case arising under this

chapter and brought in any State court of competent jurisdiction

shall be removed to any court of the United States, except where

the United States or any officer or employee of the United States

in his official capacity is a party. No costs shall be assessed

for or against the Secretary in any proceeding under this chapter

brought by or against him in the Supreme Court or such other

courts.

-SOURCE-

(Pub. L. 90-448, title XIV, Sec. 1420, Aug. 1, 1968, 82 Stat. 598;

Pub. L. 100-628, title X, Sec. 1089(b), Nov. 7, 1988, 102 Stat.

3283.)

-MISC1-

AMENDMENTS

1988 - Pub. L. 100-628 struck out ''(a)'' after section

designation.

-CITE-

15 USC Sec. 1719a 01/06/03

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TITLE 15 - COMMERCE AND TRADE

CHAPTER 42 - INTERSTATE LAND SALES

-HEAD-

Sec. 1719a. Repealed. Pub. L. 104-66, title I, Sec. 1071(c), Dec.

21, 1995, 109 Stat. 720

-MISC1-

Section, Pub. L. 90-448, title XIV, Sec. 1421, as added Pub. L.

96-153, title IV, Sec. 409, Dec. 21, 1979, 93 Stat. 1132, directed

Secretary to submit to Congress biennial reports on administration

of this chapter and its impact upon land development industry and

purchasers and lessees of undeveloped land.

-CITE-

15 USC Sec. 1720 01/06/03

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TITLE 15 - COMMERCE AND TRADE

CHAPTER 42 - INTERSTATE LAND SALES

-HEAD-

Sec. 1720. Authorization of appropriations

-STATUTE-

There are authorized to be appropriated such sums as may be

necessary to carry out this chapter.

-SOURCE-

(Pub. L. 90-448, title XIV, Sec. 1422, formerly Sec. 1421, Aug. 1,

1968, 82 Stat. 599; renumbered Sec. 1422, Pub. L. 96-153, title IV,

Sec. 409, Dec. 21, 1979, 93 Stat. 1132.)

-CITE-