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Mi ish Bill(H. R. 12574)
Hud Proposal Senate Bill
(HR.11265) (s. 3084) - In addition,
order of suspension,
SUMMARY OF INTERSTATE LAND SALES REFORM ACT OF 1978
H.R. 12574 (MINISH BILL)
Section 2 - Subdivisions of less than 40 lots and subdivisions containing lots over 40 acres
each are exempt.
Section 3 Adds omissions to state material facts as violations and eliminates requireme
of proof of reliance in order to establish material misrepresentation as a viola
(a) contract signed on first day contract is offered,
recordable description of the lot, or
is transferred within 30 days of signing contract,
Copies of advertising and sales pitches must be filed as part of Statement of Re
Nothing in Act shall affect requirement that person comply with State laws rega: sale of interstate land except to extent State laws are inconsistent with this Act.
Expands damages consumer may recover in civil suit under Act to include attor fees, travel expenses and appraisal costs. Purchasers may sue for specific performance of promises made by developers and on tender of the contract or de pursuant to suit to enforce rights may be entitled to a total refind of monies pait pursuant to the contract,
Section 7 - Extends statute of limitations to a maximum of 7 years after sale or lease.
Lengthens statute of limitations to 3 years after discovery for suit on basis of untrie statement or omission and for suit on basis of failure to file a statement of record or to give purchaser a property report.
Section 8 - Gives OILSR authority to issue cease to desist orders against developers and to
impose civil penalties on developers after an administrative hearing.
Section 9 - Directs Secretary of HUD to appoint an Administrator of Interstate Land Sales.
Section 10 - Raises the criminal penalties for violators of the Act from a maximum of
$5,000 and 5 years imprisonment to maximum of $10,000 and 7 years
Section 11 - Clarifies HUD authority to regulate advertising by developers.
Section 12 - Authorizes HUD to expend funds for public education concerning problems of
buying property covered by this Act.
Section 13 - "Parens Patriae" section allows attorney general of a State to bring civil actions
on behalf of citizens of his State who have purchased land against developers who have violated this Act.
Section 14 - Requires that developers who promise to provide basic services, such as water,
sewage disposal and electricity establish escrow accounts to assure completion
Summary & Administration's Proposed Amendments to
H. R. 11265
Sec. 421(a): Raises from 50 to 100 lots the size of a subdivision within
the jurisdiction of the Act.
Sec. 421(b) and (c): The sale or lease of subdivisions of less than 100 lots,
or where all lots are more than 40 acres, are exempt from
Sec. 421(d): The sale or lease of land under or pursuant to a court order,
where the Secretary of HUD determines it to be in the public
Sec. 421(e): Eliminates exemption from the Act for the sale or lease of
unencumbered land after the on-site inspection by the purchascr.
Sec. 421(1): Adds prohibition against omissions to state material facts and
eliminates requirement of proof of purchasers reliance in order to establish material misrepresentation as a violation.
Sec. 421(f): Creates unqualified right of revocation until the 14th day after
Sec. 421(g): Deletes the $1000 ceiling on the fee for filing, and adds requirement
that such a fee be paid for filing a request for exemption.
Sec. 421(h)(1): Unless the Secretary has accepted state approved materials,
the property report shall be used in lieu of any state disclosure document.
Sec. 421(i): In a civil suit by the purchaser, court may order damages,
specific performance, or such other relief as the court deems