95TH CONGRESS 2D SESSION

H. R. 11265

IN THE HOUSE OF REPRESENTATIVES

MARCH 3, 1978

Mr. ASHLEY (for himself and Mr. REUSS) (by request) introduced the following bill; which was referred to the Committee on Banking, Finance and Urban Affairs

A BILL

To amend and extend certain Federal laws relating to housing, community and neighborhood development and preservation, and related prograins, and for other purposes.

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AMENDMENTS TO INTERSTATE LAND SALES FULL

DISCLOSURE ACT

SEC. 421. (a) Section 1402 (3) of the Interstate Land

13 Sales Full Disclosure Act is amended by striking “fifty"

14 and inserting in lieu thereof "one hundred".

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(b) Section 1403 (a) (1) of such Act is amended by 16 striking "fifty" and inserting in lieu thereof "one hundred".

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(c) Section 1403 (a) (2) of such Act is amended by 18 striking "five acres or more" and inserting in lieu thereof 19 "more than forty acres".

20 (d) Section 1403 (a) (+) of such Act is amended 21 by inserting immediately before the semicolon "when the

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Secretary determines it to be in the public interest".

(e) Section 1403 (a) of such Act is further amended

by striking paragraph (10). by inserting the word "or"

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after the semicolon at the end of paragraph (9) and by

2 redesignating paragraph (11) as paragraph (10).

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(f) Section 1404 of such Act is amended to read as 4 follows:

5 "PROHIBITIONS RELATING TO THE SALE OR LEASE OF LOTS

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IN SUBDIVISIONS

"SEC. 1404. (a) It shall be unlawful for any de

8 veloper or agent, directly or indirectly, to make use of any

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means or instruments of transportation or communication 10 in interstate commerce, or of the mails, to sell or lease any 11 lot in any subdivision unless a statement of record with 12 respect to such lot is in effect in accordance with section 13 1407 and a printed property report, meeting the require14 ments of section 1408, is furnished to the purchaser in 15 advance of the signing of any contract or agreement for 16 sale or lease by the purchaser; and

17 "(b) It shall be unlawful for any developer or agent 18 thereof subject to this title who directly or indirectly makes 19 use of any means of transportation or communication in 20 interstate commerce, or of the mails, in selling or leasing, 21 or offering to sell or lease, any lot in a subdivision-

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

"(2) to obtain money or property by means of

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any untrue statement of a material fact, or any omis

sion to state a material fact necessary in order to make

the statements made not misleading, with respect to

any information included in the statement of record or the property report or with respect to any other information pertinent to the lot or subdivision; or

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fraud or deceit upon a purchaser.

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"(3) to engage in any transaction, practice, or course of business which operates or would operate as a

“(c) Any contract or agreement for the purchase or 11 lease of a lot in a subdivision covered by this title, where 12 the property report has not been given to the purchaser in 13 advance or at the time of the purchaser's signing, shall be 14 voidable at the option of the purchaser.

15 "(d) A purchaser may revoke any contract or agree16 ment for the purchase or lease of a lot in a subdivision 17 covered by this title until midnight of the fourteenth day 18 after signing the contract or agreement and the contract or 19 agreement shall so provide.".

20 (g) Section 1405 (b) of such Act is amended by in21 serting, immediately after "amendment thereto", "or a re22 quest for an exemption," and by striking "not in excess of 23 $1,000".

(h) (1) Section 1409 (a) of such Act is amended to

25 read as follows:

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1 “(a) In administering this title the Secretary shall 2 cooperate with State authorities charged with the responsi3 bility of regulating the sale of lots in subdivisions which are 4 also subject to this title. The Secretary may accept for filing 5 under sections 1405 and 1408 and declare effective as a 6 statement of record and property report, material found 7 acceptable by such authorities if the Secretary finds such 8 action to be appropriate in the public interest or for the pro9 tection of purchasers. Unless the Secretary has accepted 10 State materials, the property report described in section 11 1408 shall be used in lien of any State disclosure document 12 delivered to purchasers.

13 (2) Section 1409 (b) of such Act is amended by strik14 ing "Nothing" and inserting in lieu thereof "Except as pro15 vided in subsection (a), nothing".

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(i) Section 1410 of such Act is amended to read as 17 follows:

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"CIVIL LIABILITIES

“SEC. 1410. (a) A purchaser may bring an action at 20 law or in equity against a developer or agent subject to this 21 title if the sale or lease was made in violation of (1) section 22 1404 (a) or (2) section 1404(b). In a suit authorized by 23 this section for violation of section 1404 (a) or (b), the 24 court may order damages, specific performance, or such other 25 relief as the court deems fair, just, and equitable. In deter

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mining such relief the court shall take into account but not be

limited to the following factors: the contract price of the lot;

the amount the purchaser actually paid; the cost of any improvements to the lot; the fair market value of the lot at

the time of sale; and the fair market value of the lot at the time such suit was brought.

"(b) A purchaser may bring an action at law or in

equity to enforce any right under section 1404 (c) or (d). In any suit to enforce a right created under section 1404 (c) or (d) the purchaser, upon tender of an instrument.

divesting the purchaser of his or her interest in a lot, shall

be entitled to all moneys paid pursuant to such purchaser's contract or agreement.

"(c) A purchaser may bring an action at law or in 15 equity against a developer or agent subject to this title if 16 such developer or agent fails to carry out any obligation set 17 forth in the statement of record and property report.

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"(d) The amount recoverable in a suit authorized by 19 this section may include interest, reasonable attorneys' fees, 20 independent appraisers' fees, and court costs. 21 "(e) Every person who becomes liable to make any 22 payment under this section may recover contribution, as in 23 cases of contract, from any person who, if sued separately, 21 would have been liable to make the same payment.".