1 7 "(b) Any developer or agent, who sells or leases a lot 2 in a subdivision 3 4 5 6 7 8 9 "(1) in violation of section 1404, or "(2) by means of a property report which con tained an untrue statement of a material fact or omitted to state a material fact required to be stated therein, may be sued by the purchaser of such lot. "(c) A purchaser or lessee may bring an action at law or in equity to enforce any right under sections 1404 (b), 1404 10 (c), or 1425 (b). In any suit to enforce a right under section 11 1404 (b), 1404 (c), or 1425 (b), the purchaser or lessee, 12 upon tender of an instrument divesting the purchaser of his 13 or her interest in a lot, shall be entitled to all moneys paid 14 pursuant to such purchaser's contract or agreement. 15 “(d) (1) The suit authorized under subsection (a) or 16 (b) may be to recover such damages as shall represent the 17 difference between the amount paid for the lot, the reasonable 18 cost of any improvements thereto, any reasonable court costs, 19 and any reasonable cost incurred by the purchaser or lessee 20 in connection with such suit for attorneys' fees, appraisal 21 costs, and travel expenses to and from the lot, and the lesser 22 of (A) the value thereof as of the time such suit was brought, or (B) the price at which such lot shall have been disposed 24 of in a bona fide market transaction before the suit, or (C) 25 the price at which such lot shall have been disposed of after 2 23 8 1 suit in a bona fide market transaction but before judgment. 2 "(2) The suit authorized under subsection (a) or (b) 3 may, in lieu of a suit to recover damages, be for the purpose 4 of securing specific performance of the contract or agreement 5 and any other promises made by the developer or his agent 6 in connection with such sale or lease. 7 "(e) Every person who becomes liable to make any 8 payment under this section may recover contribution as in 9 cases of contract from any person who, if sued separately, 10 would have been liable to make the same payment. 11 "(f) In no case shall the amount recoverable under this 12 section exceed the sum of the purchase price of the lot, the 13 reasonable cost of improvements, reasonable court costs, and 14 any reasonable cost incurred by the purchaser or lessee in 15 connection with such suit for attorneys' fees, appraisal costs, 16 and travel expenses to and from the lot.". 17 18 STATUTE OF LIMITATIONS SEC. 7. Section 1412 of the Interstate Land Sales Full 19 Disclosure Act (15 U.S.C. 1711) is amended to read as 20 follows: 21 22 "STATUTE OF LIMITATIONS "SEC. 1412. No action shall be maintained to enforce 23 any liability created under section 1410 (a) or (b) (2) 24 unless brought within three years after the discovery of the 25 untrue statement or omission or after such discovery should 9 1 have been made by the exercise of reasonable diligence. No 2 action shall be maintained to enforce any liability created 3 under section 1410 (b) (1) or (c) unless brought within 4 three years after the discovery of the violation upon which 5 it is based or after such discovery should have been made by 6 the exercise of reasonable diligence. In no event shall any 7 such action be brought by a purchaser or lessee more than seven years after the sale or lease to such purchaser or 9 lessee.". 8 10 11 ADMINISTRATIVE REMEDIES SEC. 8. (a) Section 1415 of the Interstate Land Sales 12 Full Disclosure Act (15 U.S.C. 1714) is amended by add13 ing at the end thereof the following new subsections: 14 "(e) If it appears to the Secretary at any time that 15 there is a reasonable basis for believing that any developer 16 or agent is violating or has violated any provision of this 17 title or any rules or regulations prescribed pursuant thereto, 18 or that a developer or agent has failed to comply with the 19 terms of any order issued by the Secretary, the Secretary 20 may issue and serve upon such developer or agent a com21 plaint stating the charges and containing a notice of a hear22 ing at a time and a place described therein. Such hearing 23 shall be on a date at least twenty days and not more than 24 sixty days after service of such complaint. The developer or agent shall have the right to appear at the place and time 25 10 1 of such hearing and show cause why an order should not 2 be entered by the Secretary requiring the developer or agent 3 to cease and desist from the violation or failure to comply 4 as so charged in such complaint. If the developer or agent 5 fails to file an answer and intention to appear within fifteen 6 days after service of the complaint and notice, such developer 7 or agent shall be deemed to have waived the right to a hear8 ing and the Secretary may issue an order to cease and desist. 9 The Secretary shall issue a decision within twenty days after 10 any hearing, and any order issued to cease and desist shall 11 be effective upon service on the developer or agent. 12 "(f) (1) Whenever the Secretary determines that the 13 violation or failure to comply specified in the complaint served 14 upon an agent or developer pursuant to subsection (e) is 15 likely to prejudice seriously the public interest, the Secre16 tary may issue a temporary order requiring the developer 17 or agent to cease and desist from any such violation or failure 18 to comply. Such order shall become effective upon service 19 upon the developer or agent, and, unless suspended by a 20 court in proceedings authorized by paragraph (2) of this 21 subsection, shall remain effective and enforceable pending 22 the completion of the administrative proceedings pursuant 23 to the complaint and notice, or, if an order to cease and 24 desist is issued against the developer or agent pursuant to 25 subsection (e), until the effective date of any such order. 1 2 11 "(2) Within ten days after any agent or developer has been served with a temporary order to cease and desist, such 3 developer or agent may apply to the United States district 4 court for the judicial district where the developer or agent 5 6 is located, or to the United States District Court for the Dis trict of Columbia, to determine whether such order was 7 arbitrary, capricious, or an abuse of discretion, or whether 8 the order was issued in accordance with procedures estab9 lished by law. The sole effect of any order of the court will 10 be to suspend the effectiveness of the temporary order to 11 cease and desist, pending completion of the administrative 12 proceedings pursuant to the complaint and notice served 13 upon the developer and agent under subsection (e).". 14 (b) The Interstate Land Sales Full Disclosure Act is 15 amended by adding the following new section at the end 16 thereof: 17 18 "CIVIL PENALTIES "SEC. 1423. (a) Any person who violates any provi 19 sion of this title or any rule, regulation, or order issued by the 20 Secretary thereunder shall be subject to a civil penalty, in 21 a determination by the Secretary after opportunity for a 22 hearing, not to exceed $5,000 for each such violation. Each 23 separate offense shall constitute a violation and, in the case 24 of a continuing offense, each day shall constitute a separate |