Question

Alex, a Nevada developer, has a very large development of attached retirement villas. He is interested in advertising this development in California. Alex has previously advertised and sold condos in his Arizona development to citizens of California. What must Alex do to promote and sell his Nevada development in California?

Answer 1

Answer:

According to the Interstate Land Sales Full Disclosure Act of 1968, Alex must obtain a public report from HUD and deliver a copy of this report to each prospective purchaser.

Explanation:

The Interstate Land Sales Full Disclosure Act of 1968 was an act of Congress passed in 1968 to facilitate regulation of interstate land sales, to protect consumers from fraud and abuse in the sale or lease of land. The Act was patterned after the Securities Act of 1933 and required land developers to register subdivisions of non-exempt lots or condominium units. Currently, the responsibility for administering the Act and its regulations is with the Consumer Financial Protection Bureau. A regulated developer is to provide each buyer with a disclosure document called a Property Report. The Property Report contains relevant information about the subdivision and must be delivered to each buyer before the signing of the contract or agreement and gives the buyer a minimum period of 7 days to cancel the purchase agreement.