Winter 2010 Update
Due to the downturn in the real estate market, the Interstate Land Sales Full Disclosure Act (“ILSA”) has become a big topic of conversation in places like New York, Miami, Charlotte, Atlanta and across the country as consumers have begun arming themselves with ILSA to get out of purchase agreements. Considering ILSA requires strict compliance, developers may be exposed to the thorny requirements of this federal act, leaving them vulnerable to contract rescission up to three years from the signing of a purchase agreement.The attorneys at Carmel & Carmel have over twenty years of ILSA experience helping developers navigate the regulations and ensuring complete compliance.Here is what you can do during this downturn to make sure you are in full compliance with applicable federal and state land registration laws:
Federal Requirements.
- Make sure you are in full compliance with ILSA. If you have been told you qualify for an ILSA exemption, have your purchase agreements and offering plans reviewed by Carmel & Carmel attorneys. If you do not meet an exemption, get registered now, to insulate yourself from potentially devastating HUD inquiries and litigation. Carmel & Carmel attorneys specialize in ILSA purchase agreement review as well as HUD registrations.
- If you are HUD registered, now is the time to carefully review your HUD Property Report and purchase agreement. Is all the information still up-to-date and completely accurate in the HUD Property Report? Are you delivering the HUD Property Report correctly to purchasers? Is your contract still compliant with ILSA required language? Have Carmel & Carmel attorneys review your HUD Property Report and purchase agreement today to make sure you are in full-compliance with ILSA.
State Compliance. As ILSA litigation has risen, so too has litigation based on state registration requirements. In addition, state agencies, in an effort to help Main Street have stepped up their enforcement divisions and begun to actively enforce the requirements that many developers either ignored or misunderstood. If you do any out-of-state marketing including direct mailing, broker events, real estate shows, responding to email or telephone inquiries from out-of-state residents, you must make sure you are in compliance with various state registration requirements. Carmel and Carmel attorneys will keep you in compliance with state registration laws as well.
Contact Us. Why risk a sale, especially in this market? The cost to ensure compliance greatly outweighs the potential cost of litigation, HUD inquiries, and deposit refunds. Contact Carmel & Carmel, PC and we can discuss your compliance and needs.
Carmel & Carmel attorneys can be reached at info@carmel.us or 202-787-1322.
2010-01-01