Interstate Land Sales Full Disclosure Act, 82

[Title 24 CFR 1419,]
[Code of Federal Regulations (annual edition) - May 1, 2001 Edition]
[Title 24 - HOUSING AND URBAN DEVELOPMENT]
[Subtitle B - Regulations Relating to Housing and Urban Development]
[Chapter X - OFFICE OF ASSISTANT SECRETARY FOR HOUSING--FEDERAL HOUSING]
[Part 1710 - LAND REGISTRATION]
[Sec. 1419, - Interstate Land Sales Full Disclosure Act, 82]
[From the U.S. Government Printing Office]

24HOUSING AND URBAN DEVELOPMENT52001-05-012001-05-01falseInterstate Land Sales Full Disclosure Act, 821419,Sec. 1419,HOUSING AND URBAN DEVELOPMENTRegulations Relating to Housing and Urban DevelopmentOFFICE OF ASSISTANT SECRETARY FOR HOUSING--FEDERAL HOUSINGLAND REGISTRATION
Subpart A--General Requirements

Authority: Sec. 1419, Interstate Land Sales Full Disclosure Act, 82
Stat. 590, 598; 15 U.S.C. 1718; sec. 7(d), Dept. of Housing and Urban
Development Act, 42 U.S.C. 3535(d).

Sec. 1710.1 Definitions.

(a) Statutory terms. All terms are used in accordance with their
statutory meaning in 15 U.S.C. 1702 or with part 5 of this title, unless
otherwise defined in paragraph (b) of this section or elsewhere in this
part.
(b) Other terms. As used in this part:
Act means the Interstate Land Sales Full Disclosure Act, 15 U.S.C.
1701.
Advisory opinion means the formal written opinion of the Secretary
as to jurisdiction in a particular case or the applicability of an
exemption under Secs. 1710.5 through 1710.15, based on facts submitted
to the Secretary.
Available for use means that in addition to being constructed, the
subject facility is fully operative and supplied

[[Page 8]]

with any materials and staff necessary for its intended purpose.
Beneficial property restrictions means restrictions that are
enforceable by the lot owners and are designed to control the use of the
lot and to preserve or enhance the environment and the aesthetic and
economic value of the subdivision.
Date of filing means the date a Statement of Record, amendment, or
consolidation, accompanied by the applicable fee, is received by the
Secretary.
Good faith estimate means an estimate based on documentary evidence.
In the case of cost estimates, the documentation may be obtained from
the suppliers of the services. In the case of estimates of completion
dates, the documentation may be actual contracts let, engineering
schedules, or other evidence of commitments to complete the amenities.
Lot means any portion, piece, division, unit, or undivided interest
in land located in any State or foreign country, if the interest
includes the right to the exclusive use of a specific portion of the
land.
OILSR means the Interstate Land Sales Registration program.
Owner means the person or entity who holds the fee title to the land
and has the power to convey that title to others.
Parent corporation means that entity which ultimately controls the
subsidiary, even though the control may arise through any series or
chain of other subsidiaries or entities.
Principal means any person or entity holding at least a 10 percent
financial or ownership interest in the developer or owner, directly or
through any series or chain of subsidiaries or other entities.
Rules means all rules adopted pursuant to the Act, including the
general requirements published in this part.
Sale means any obligation or arrangement for consideration to
purchase or lease a lot directly or indirectly. The terms ``sale'' or
``seller'' include in their meanings the terms ``lease'' and ``lessor''.
Senior Executive Officer means the individual of highest rank
responsible for the day-to-day operations of the developer and who has
the authority to bind or commit the developing entity to contractual
obligations.
Site means a group of contiguous lots, whether such lots are
actually divided or proposed to be divided. Lots are considered to be
contiguous even though contiguity may be interrupted by a road, park,
small body of water, recreational facility, or any similar object.
Start of construction means breaking ground for building a facility,
followed by diligent action to complete the facility.

[61 FR 13597, Mar. 27, 1996]

Sec. 1710.3 General applicability.

Except in the case of an exempt transaction, a developer may not
sell or lease lots in a subdivision, making use of any means or
instruments of transportation or communication in interstate commerce,
or of the mails, unless a Statement of Record is in effect in accordance
with the provisions of this part. In non-exempt transactions, the
developer must give each purchaser a printed Property Report, meeting
the requirements of this part, in advance of the purchaser's signing of
any contract or agreement for sale or lease.

(Approved by the Office of Management and Budget under control number
2502-0243)

[45 FR 40479, June 13, 1980, as amended at 49 FR 31368, Aug. 6, 1984]

Sec. 1710.4 Exemptions--general.

(a) The exemptions available under Secs. 1710.5 through 1710.16 are
not applicable when the method of sale, lease or other disposition of
land or an interest in land is adopted for the purpose of evasion of the
Act.
(b) With the exception of the sales or leases which are exempt under
Sec. 1710.5, the anti-fraud provisions of the Act (15 U.S.C. 1703(a)(2))
apply to exempt transactions. The anti-fraud provisions make it unlawful
for a developer or agent to employ any device, scheme, or artifice to:
(1) Defraud;
(2) To obtain money or property by means of any untrue statement of
a material fact, or

[[Page 9]]

(3) To omit to state a material fact necessary in order to make the
statements made not misleading, with respect to any information
pertinent to the lot or subdivision; or
(4) To engage in any transaction, practice, or course of business
which operates or would operate as a fraud or deceit upon a purchaser.
(c) The anti-fraud provisions of the Act require that certain
representations be included in the contract in transactions which are
not exempt under Sec. 1710.5. Specifically, the Act requires that if a
developer or agent represents that roads, sewers, water, gas or electric
service or recreational amenities will be provided or completed by the
developer, the contract must stipulate that the services or amenities
will be provided or completed. See Sec. 1715.15(f).
(d) Eligibility for exemptions available under Secs. 1710.5 through
1710.14 is self-determining. With the exception of the exemptions
available under Secs. 1710.15 and 1710.16, a developer is not required
to file notice with or obtain the approval of the Secretary in order to
take advantage of an exemption. If a developer elects to take advantage
of an exemption, the developer is responsible for maintaining records to
demonstrate that the requirements of the exemption have been met.
(e) A developer may present evidence, or otherwise discuss, in an
informal hearing before the OILSR Administrator or designee, the
Department's position on the jurisdiction or non-exempt status of a
particular subdivision.

[45 FR 40479, June 13, 1980, as amended at 54 FR 40866, Oct. 4, 1989]

Sec. 1710.5 Statutory exemptions from the provisions of this chapter.

A listing of the statutory exemptions is contained in 15 U.S.C.
1703. In accordance with 15 U.S.C. 1703(a)(2), if the sale involves a
condominium or multi-unit construction, a presale clause conditioning
the sale of a unit on a certain percentage of sales of other units is
permissible if it is legally binding on the parties and is for a period
not to exceed 180 days. However, the 180-day provision cannot extend the
2-year period for performance. The permissible 180 days is calculated
from the date the first purchaser signs a sales contract in the project
or, if a phased project, from the date the first purchaser signs the
first sales contract in each phase.

[61 FR 13597, Mar. 27, 1996]

Sec. 1710.6 One hundred lot exemption.

The sale of lots in a subdivision is exempt from the registration
requirements of the Act if, since April 28, 1969, the subdivision has
contained fewer than 100 lots, exclusive of lots which are exempt from
jurisdiction under Sec. 1710.5. In the sale of lots in the subdivision
that are not exempt under Sec. 1710.5, the developer must comply with
the Act's anti-fraud provisions, set forth in Sec. 1710.4 (b) and (c).

[49 FR 31368, Aug. 6, 1984]

Sec. 1710.7 Twelve lot exemption.

(a) The sale of lots is exempt from the registration requirements of
the Act if, beginning with the first sale after June 20, 1980, no more
than twelve lots in the subdivision are sold in the subsequent twelve-
month period. Thereafter, the sale of the first twelve lots is exempt
from the registration requirements if no more than twelve lots were sold
in each previous twelve month period which began with the anniversary
date of the first sale after June 20, 1980.
(b) A developer may apply to the Secretary to establish a different
twelve month period for use in determining eligibility for the exemption
and the Secretary may allow the change if it is for good cause and
consistent with the purpose of this section.
(c) In determining eligibility for this exemption, all lots sold or
leased in the subdivision after June 20, 1980, are counted, whether or
not the transactions are otherwise exempt. Sales or leases made prior to
June 21, 1980, are not considered in determining eligibility for the
exemption.
(d) The sale must also comply with the anti-fraud provisions of
Sec. 1710.4 (b) and (c) of this part.

[45 FR 40479, June 13, 1980, as amended at 49 FR 31368, Aug. 6, 1984]

Sec. 1710.8 Scattered site subdivisions.

(a) The sale of lots in a subdivision consisting of noncontiguous
parts is

[[Page 10]]

exempt from the registration requirements of the Act if--
(1) Each noncontiguous part of the subdivision contains twenty or
fewer lots; and
(2) Each purchaser or purchaser's spouse makes a personal, on-the-
lot inspection of the lot purchased prior to signing a contract.
(b) For purposes of this exemption, interruptions such as roads,
parks, small bodies of water or recreational facilities do not serve to
break the contiguity of parts of a subdivision.
(c) The sale must also comply with the anti-fraud provisions of
Sec. 1710.4 (b) and (c) of this part.

[45 FR 40479, June 13, 1980, as amended at 49 FR 31368, Aug. 6, 1984]

Sec. 1710.9 Twenty acre lots.

(a) The sale of lots in a subdivision is exempt from the
registration requirements of the Act if, since April 28, 1969, each lot
in the subdivision has contained at least twenty acres. In determining
eligibility for the exemption, easements for ingress and egress or
public utilities are considered part of the total acreage of the lot if
the purchaser retains ownership of the property affected by the
easement.
(b) The sale must also comply with the anti-fraud provisions of
Sec. 1710.4 (b) and (c) of this part.

[45 FR 40479, June 13, 1980, as amended at 49 FR 31368, Aug. 6, 1984]

Sec. 1710.10 Single-family residence exemption.

(a) General. The sale of a lot which meets the requirements
specified under paragraphs (b) and (c) of this section is exempt from
the registration requirements of the Act.
(b) Subdivision requirements. (1) The subdivision must meet all
local codes and standards.
(2) In the promotion of the subdivision there must be no offers, by
direct mail or telephone solicitation, of gifts, trips, dinners or use
of similar promotional techniques to induce prospective purchasers to
visit the subdivision or to purchase a lot.
(c) Lot requirements. (1) The lot must be located within a
municipality or county where a unit of local government or the State
specifies minimum standards in the following areas for the development
of subdivision lots taking place within its boundaries:
(i) Lot dimensions.
(ii) Plat approval and recordation.
(iii) Roads and access.
(iv) Drainage.
(v) Flooding.
(vi) Water supply.
(vii) Sewage disposal.
(2) Each lot sold under the exemption must be either zoned for
single-family residences or, in the absence of a zoning ordinance,
limited exclusively by enforceable covenants or restrictions to single-
family residences. Manufactured homes, townhouses, and residences for
one-to-four family use are considered single-family residences for
purposes of this exemption provision.
(3) The lot must be situated on a paved street or highway which has
been built to standards established by the State or the unit of local
government in which the subdivision is located. If the roads are to be
public roads they must be acceptable to the unit of local government
that will be responsible for maintenance. If the street or highway is
not complete, the developer must post a bond or other surety acceptable
to the municipality or county in the full amount of the cost of
completing the street or highway to assure completion to local
standards. For purposes of this exemption, paved means concrete or
pavement with a bituminous surface that is impervious to water, protects
the base and is durable under the traffic load and maintenance
contemplated.
(4) The unit of local government or a homeowners association must
have accepted or be obligated to accept the responsibility for
maintaining the street or highway upon which the lot is situated. In any
case in which a homeowners association has accepted or is obligated to
accept maintenance responsibility, the developer must, prior to signing
of a contract or agreement to purchase, provide the purchaser with a
good faith written estimate of the cost of carrying out the
responsibility over the first ten years of ownership.
(5) At the time of closing, potable water, sanitary sewage disposal,
and electricity must be extended to the lot

[[Page 11]]

or the unit of local government must be obligated to install the
facilities within 180 days following closing. For subdivisions which
will not have a central water or sewage disposal system, there must be
assurances that an adequate potable water supply is available year-round
and that the lot is approved for the installation of a septic tank.
(6) The contract of sale must require delivery within 180 days after
the signing of the sales contract of a warranty deed, which at the time
of delivery is free from monetary liens and encumbrances. If a warranty
deed is not commonly used in the jurisdiction where the lot is located,
a deed or grant which warrants that the seller has not conveyed the lot
to another person may be delivered in lieu of a warranty deed. The deed
or grant used must warrant that the lot is free from encumbrances made
by the seller or any other person claiming by, through, or under the
seller.
(7) At the time of closing, a title insurance binder or title
opinion reflecting the condition of title must be in existence and
issued or presented to the purchaser showing that, subject only to
exceptions which are approved in writing by the purchaser at the time of
closing, marketable title to the lot is vested in the seller.
(8) The purchaser or purchaser's spouse must make a personal, on-
the-lot inspection of the lot purchased prior to signing a contract or
agreement to purchase.
(d) The sale must also comply with the anti-fraud provisions of
Sec. 1710.4 (b) and (c) of this part.

[45 FR 40479, June 13, 1980, as amended at 49 FR 31368, Aug. 6, 1984; 50
FR 9269, Mar. 7, 1985]

Sec. 1710.11 Manufactured home exemption.

(a) The sale of a lot is exempt from the registration requirements
of the Act when the following eligibility requirements are met:
(1) The lot is sold as a homesite by one party and a manufactured
home is sold by another party and the contracts of sale--
(i) Obligate the sellers to perform, contingent upon the other
seller carrying out its obligations so that a completed manufactured
home will be erected on a completed homesite within two years after the
date the purchaser signed the contract to purchase the lot;
(ii) Provide that all funds received by the sellers are to be
deposited in escrow accounts independent of the sellers until the
transactions are completed;
(iii) Provide that funds received by the sellers will be released to
the buyer upon demand if the lot on which the manufactured home has been
erected is not conveyed within two years; and
(iv) Contain no provisions which restrict the purchaser's remedy of
bringing suit for specific performance.
(2) The homesite is developed in conformance with all local codes
and standards, if any, for manufactured home subdivisions.
(3) At the time of closing--
(i) Potable water and sanitary sewage disposal are available to the
homesite and electricity has been extended to the lot line;
(ii) The homesite is accessible by roads;
(iii) The purchaser receives marketable title to the lot; and
(iv) Other common facilities represented in any manner by the
developer or agent to be provided are completed or there are letters of
credit, cash escrows or surety bonds in the form acceptable to the local
government in an amount equal to 100 percent of the estimated cost of
completion. Corporate bonds are not acceptable for purposes of the
exemption.
(4) For purposes of this section, a manufactured home is a unit
receiving a label in conformance with HUD regulations implementing the
National Manufactured Housing Construction and Safety Standards Act of
1974 (42 U.S.C. 5401).
(b) The sale must also comply with the anti-fraud provisions of
Sec. 1710.4 (b) and (c) of this part.

[45 FR 40479, June 13, 1980, as amended at 49 FR 31368, Aug. 6, 1984; 49
FR 33644, Aug. 24, 1984; 50 FR 9269, Mar. 7, 1985]

Sec. 1710.12 Intrastate exemption.

(a) Eligibility requirements. The sale of a lot is exempt from the
registration requirements of the Act if the following requirements are
met:

[[Page 12]]

(1) The sale of lots in the subdivision after December 20, 1979, is
restricted solely to residents of the State in which the subdivision is
located unless the sale is exempt under Sec. 1710.5, Sec. 1710.11 or
Sec. 1710.13.
(2) The purchaser or purchaser's spouse makes a personal on-the-lot
inspection of the lot to be purchased before signing a contract.
(3) Each contract--
(i) Specifies the developer's and purchaser's responsibilities for
providing and maintaining roads, water and sewer facilities and any
existing or promised amenities;
(ii) Contains a good faith estimate of the year in which the roads,
water and sewer facilities and promised amenities will be completed; and
(iii) Contains a non-waivable provision giving the purchaser the
opportunity to revoke the contract until at least midnight of the
seventh calendar day following the date the purchaser signed the
contract. If the purchaser is entitled to a longer revocation period by
operation of State law, that period becomes the Federal revocation
period and the contract must reflect the requirements of the longer
period.
(4) The lot being sold is free and clear of all liens, encumbrances
and adverse claims except the following:
(i) Mortgages or deeds of trust which contain release provisions for
the individual lot purchased if--
(A) The contract of sale obligates the developer to deliver, within
180 days, a warranty deed (or its equivalent under local law), which at
the time of delivery is free from any monetary liens or encumbrances;
and
(B) The purchaser's payments are deposited in an escrow account
independent of the developer until a deed is delivered.
(ii) Liens which are subordinate to the leasehold interest and do
not affect the lessee's right to use or enjoy the lot.
(iii) Property reservations which are for the purpose of bringing
public services to the land being developed, such as easements for water
and sewer lines.
(iv) Taxes or assessments which constitute liens before they are due
and payable if imposed by a State or other public body having authority
to assess and tax property or by a property owners' association.
(v) Beneficial property restrictions that are mutually enforceable
by the lot owners in the subdivision. Restrictions, whether separately
recorded or incorporated into individual deeds, must be applied
uniformly to every lot or group of lots. To be considered beneficial and
enforceable, any restriction or covenant that imposes an assessment on
lot owners must apply to the developer on the same basis as other lot
owners. Developers who maintain control of a subdivision through a
Property Owners' Association, Architectural Control Committee,
restrictive covenant or otherwise, shall transfer such control to the
lot owners no later than when the developer ceases to own a majority of
total lots in, or planned for, the subdivision. Relinquishment of
developer control shall require affirmative action, usually in the form
of an election based upon one vote per lot.
(vi) Reservations contained in United States land patents and
similar Federal grants or reservations.
(5) Prior to the sale the developer discloses in a written statement
to the purchaser all qualifying liens, reservations, taxes, assessments
and restrictions applicable to the lot purchased. The developer must
obtain a written receipt from the purchaser acknowledging that the
statement required by this subparagraph was delivered to the purchaser.
(6) Prior to the sale the developer provides in a written statement
good faith estimates of the cost to the purchaser of providing electric,
water, sewer, gas and telephone service to the lot. The estimates for
unsold lots must be updated every two years or more frequently if the
developer has reason to believe that significant cost increases have
occurred. The dates on which the estimates were made must be included in
the statement. The developer must obtain a written receipt from the
purchaser acknowledging that the statement required by this subparagraph
was delivered to the purchaser.
(b) Intrastate Exemption Statement. To satisfy the requirements of
paragraphs (a)(5) and (a)(6) of this section, an

[[Page 13]]

Intrastate Exemption Statement containing the information prescribed in
each such paragraph shall be given to each purchaser. A State-approved
disclosure document may be used to satisfy this requirement if all the
information required by paragraphs (a)(5) and (a)(6) of this section is
included in this disclosure. In such a case, the developer must obtain a
written receipt from the purchaser and comply with all other
requirements of the exemption. To be acceptable for purposes of the
exemption, the statement(s) given to purchasers must contain neither
advertising nor promotion on behalf of the developer or subdivision nor
references to the U.S. Department of Housing and Urban Development. A
sample Intrastate Exemption Statement is included in the exemption
guidelines.
(c) The sale must also comply with the anti-fraud provisions of
Sec. 1710.4 (b) and (c) of this part.

[45 FR 40479, June 13, 1980, as amended at 49 FR 31368, 31369, Aug. 6,
1984]

Sec. 1710.13 Metropolitan Statistical Area (MSA) exemption.

(a) Eligibility requirements. The sale of a lot which meets the
following requirements is exempt from registration requirements of the
Act:
(1) The lot is in a subdivision which contains fewer than 300 lots
and has contained fewer than 300 lots since April 28, 1969.
(2) The lot is located within a Metropolitan Statistical Area (MSA)
as defined by the Office of Management and Budget and characterized in
paragraph (b) of this section.
(3) The principal residence of the purchaser is within the same MSA
as the subdivision.
(4) The purchaser or purchaser's spouse makes a personal on-the-lot
inspection of the lot to be purchased prior to signing a contract or
agreement.
(5) Each contract--
(i) Specifies the developer's and purchaser's responsibilities for
providing and maintaining roads, water and sewer facilities and any
existing or promised amenities;
(ii) Contains a good faith estimate of the year in which the roads,
water and sewer facilities and promised amenities will be completed;
(iii) Contains a nonwaivable provision giving the purchaser the
opportunity to revoke the contract until at least midnight of the
seventh calendar day following the date the purchaser signed the
contract, or, if the purchaser is entitled to a longer revocation period
by operation of State law, that period becomes the Federal revocation
period and the contract must reflect the requirements of the longer
period.
(6) The lot being sold must be free and clear of liens such as
mortgages, deeds of trust, tax liens, mechanics' liens, or judgments.
For purposes of this exemption, the term liens does not include the
following:
(i) Mortgages or deeds of trust which contain release provisions for
the individual lot purchased if--
(A) The contract of sale obligates the developer to deliver, within
180 days, a warranty deed (or its equivalent under local law), which at
the time of delivery is free from any monetary liens or encumbrances;
and
(B) The purchaser's payments are deposited in an escrow account
independent of the developer until a deed is delivered.
(ii) Liens which are subordinate to the leasehold interest and do
not affect the lessee's right to use or enjoy the lot.
(iii) Property reservations which are for the purpose of bringing
public services to the land being developed, such as easements for water
and sewer lines.
(iv) Taxes or assessments which constitute liens before they are due
and payable if imposed by a State or other public body having authority
to assess and tax property or by a property owners' association.
(v) Beneficial property restrictions that are mutually enforceable
by the lot owners in the subdivision. Restrictions, whether separately
recorded or incorporated into individual deeds, must be applied
uniformly to every lot or group of lots. To be considered beneficial and
enforceable, any restriction or covenant that imposes an assessment on
lot owners must apply to the developer on the same basis as other lot
owners. Developers who maintain

[[Page 14]]

control of a subdivision through a Property Owners' Association,
Architectural Control Committee, restrictive covenants, or otherwise,
shall transfer such control to the lot owners no later than when the
developer ceases to own a majority of total lots in, or planned for, the
subdivision. Relinquishment of developer control shall require
affirmative action, usually in the form of an election based upon one
vote per lot.
(vi) Reservations contained in United States land patents and
similar Federal grants or reservations.
(7) Before the sale the developer gives a written MSA Exemption
Statement to the purchaser and obtains a written receipt acknowledging
that the statement was received. A sample MSA Exemption Statement is
included in the exemption guidelines. A State-approved disclosure
document may be used to satisfy this requirement if all of the
information required by this section is included. The statement(s) given
to purchasers must contain neither advertising nor promotion on behalf
of the developer or the subdivision nor references to the U.S.
Department of Housing and Urban Development. In descriptive and concise
terms, the statement that the developer must give the purchaser shall
disclose the following:
(i) All liens, reservations, taxes, assessments, beneficial property
restrictions which are enforceable by other lot owners in the
subdivision, and adverse claims which are applicable to the lot to be
purchased.
(ii) Good faith estimates of the cost to the purchaser of providing
electric, water, sewer, gas and telephone service to the lot. The
estimates for unsold lots must be updated every two years, or more
frequently if the developer has reason to believe that significant cost
increases have occurred. The dates on which the estimates were made must
be included in the statement.
(8) The developer executes and gives to the purchaser a written
instrument designating a person within the State of residence of the
purchaser as the developer's agent for service of process. The developer
must also acknowledge in writing that it submits to the legal
jurisdiction of the State in which the purchaser or lessee resides.
(9) The developer executes a written affirmation for each sale made
under this exemption. By January 31 of each year, the developer submits
to the Secretary a copy of the executed affirmation for each sale made
during the preceding calendar year or a master affirmation in which are
listed all purchasers' names and addresses and the identity of the lots
purchased. Individual affirmations must be available for the Secretary's
review at all times during the year.
The affirmation must be in the following form:

Developer's Name________________________________________________________
Developer's Address_____________________________________________________
Purchaser's Name(s)_____________________________________________________
Purchaser's Address(es) (including county)______________________________
Name of Subdivision_____________________________________________________
Legal Description of Lot(s) Purchased___________________________________

I hereby affirm that all of the requirements of the MSA exemption as
set forth in 15 U.S.C. 1702(b)(8) and 24 CFR 1710.13 have been met in
the sale or lease of the lot(s) described above.
I also affirm that I submit to the jurisdiction of the Interstate
Land Sales Full Disclosure Act with regard to the sale or lease cited
above.

(Date) _________________________________________________________________
(Signature of Developer or Authorized Agent)____________________________
_______________________________________________________________________
(Title) ________________________________________________________________

(b) Metropolitan Statistical Area. Metropolitan Statistical Areas
are defined by the Office of Management and Budget generally on the
basis of population statistics reported in a census. To determine
whether a subdivision is located within an MSA and the boundaries of an
MSA, contact the Office of Information and Regulatory Affairs, Office of
Management and Budget, 726 Jackson Place, NW., Washington, DC 20503.
(c) The sale must also comply with the anti-fraud provisions of
Sec. 1710.4 (b) and (c).

[45 FR 40479, June 13, 1980, as amended at 49 FR 31369, Aug. 6, 1984]

Sec. 1710.14 Regulatory exemptions.

(a) Eligibility requirements. The following transactions are exempt
from the registration requirements of the

[[Page 15]]

Act unless the Secretary has terminated the exemption in accordance with
paragraph (b) of this section.
(1) The sale of lots, each of which will be sold for less than $100,
including closing costs, if the purchaser will not be required to
purchase more than one lot.
(2) The lease of lots for a term not to exceed five years if the
terms of the lease do not obligate the lessee to renew.
(3) The sale of lots to a person who is engaged in a bona fide land
sales business.
(4) The sale of a lot to a person who owns the contiguous lot which
has a residential, commercial or industrial building on it.
(5) The sale of real estate to a government or government agency.
(6) The sale of a lot to a person who has leased and resided
primarily on the lot for at least the year preceeding the sale.
(b) Termination. If the Secretary has reasonable grounds to believe
that exemption from the registration requirements in a particular case
is not in the public interest, the Secretary may, after issuing a notice
and giving the respondent an opportunity to request a hearing within
fifteen days of receipt of the notice, terminate eligiblity for
exemption. The basis for issuing a notice may be the conduct of the
developer or agent, such as unlawful conduct or insolvency, or adverse
information about the lots or real estate that should be disclosed to
the purchasers. Proceedings will be governed by Sec. 1720.238.
(c) The sale must also comply with the anti-fraud provisions of
Sec. 1710.4 (b) and (c) of this part.

[45 FR 40479, June 13, 1980, as amended at 49 FR 31370, Aug. 6, 1984]

Sec. 1710.15 Regulatory exemption--multiple site subdivision--determination required.

(a) General. (1) The sale of lots contained in multiple sites of
fewer than 100 lots each, offered pursuant to a single common
promotional plan, is exempt from the registration requirements.
(2) For purposes of this exemption, the sale of lots in an
individual site that exceeds 99 lots is not exempt from registration.
Likewise, the sale of lots in a site containing fewer than 100 lots,
where the developer either owns contiguous land or holds an option or
other evidence of intent to acquire contiguous land which, when taken
cumulatively, would or could result in one site of 100 or more lots, is
not exempt from registration. Furthermore, the sale of lots that are
within a subdivision established by a separate developer is not exempt
from registration by this provision.
(b) Eligibility requirements. The sale of each lot must meet the
following requirements to be eligible for this exemption.
(1) The lot is sold ``as is'' with all advertised improvements and
amenities completed and in the condition advertised.
(2) The lot is in conformance with all local codes and standards.
(3) The lot is accessible, both legally and physically. For lots
which are advertised or otherwise represented as ``residential'', either
primary or secondary, with any inference that a permanent or temporary
dwelling unit of any description (excluding collapsible tents) can be
built or installed, physical access must be available by automobile,
pick-up truck or equivalent ``on-road'' vehicle.
(4) At the time of closing, a title insurance binder or title
opinion reflecting the condition of title must be issued to the
purchaser showing that, subject only to exceptions approved in writing
by the purchaser at the time of closing, marketable title is vested in
the seller.
(5) Each contract or agreement and any promissory notes--
(i) Contain the following non-waivable provision in bold face type
(which must be distinguished from the type used for the rest of the
document) on the face or signature page above all signatures:

You have the option to cancel your contract or agreement of sale by
notice to the seller until midnight of the seventh day following the
date of signing of the contract or agreement.
If you did not receive a Lot Information Statement prepared pursuant
to the rules and regulations of the Interstate Land Sales Registration
Division, U.S. Department of

[[Page 16]]

Housing and Urban Development, in advance of your signing the contract
or agreement, the contract or agreement of sale may be cancelled at your
option for two years from the date of signing.

If the purchaser is entitled to a longer revocation period by operation
of state or local law, that period becomes the Federal revocation period
and the contract must reflect the requirement of the longer period
rather than the seven days. The revocation provisions may not be limited
or qualified in the contract or other document by requiring a specific
type of notice or by requiring that notice be given at a specified
place.
(ii) Obligate the developer to deliver, within 180 days, a warranty
deed (or its equivalent under local law) for the lot which at the time
of delivery is free from any monetary liens or encumbrances.
(6) The purchaser or purchaser's spouse makes a personal on-the-lot
inspection of the lot to be purchased before signing a contract.
(7) The purchaser's payments are deposited in an escrow account
independent of the developer until a deed is delivered.
(8) Prior to the purchaser signing a contract or agreement of sale,
the developer discloses in a written Lot Information Statement all
liens, reservations, taxes, assessments, easements and restrictions
applicable to the lot purchased (see paragraph (b)(11) of this section).
(9) Prior to the purchaser signing a contract or agreement of sale,
the developer discloses in a written Lot Information Statement the name,
address and telephone number of the local governmental agency or
agencies from which information on permits or other requirements for
water, sewer and electrical installations can be obtained. This
Statement will also contain the name, address and telephone number of
the suppliers which would or could provide the foregoing services.
(10) The lot sale must comply with the anti-fraud provisions of 24
CFR 1710.4 (b) and (c) and the sales practices and standards in 24 CFR
1715.10 through 1715.28.
(11) A written Lot Information Statement must be delivered to, and
acknowledged by, each purchaser prior to his or her signing a contract
or agreement of sale, and must contain the information shown in the
format below. The Statement must be typed or printed in at least 10
point font. A copy of the acknowledgement will be maintained by the
developer for three years and will be made available to OILSR upon
request. If the Statement is not delivered as required, the contract or
agreement of sale may be revoked and a full refund paid, at the option
of the purchaser, within two years of the signing date and the contract
or agreement of sale will clearly provide this right.

Sample Format

(Use of the following headings and first paragraph are mandatory.)

Lot Information Statement

Important: Read Carefully Before Signing Anything

The developer has obtained a regulatory exemption from registration
under the Interstate Land Sales Full Disclosure Act. One requirement of
that exemption is that you must receive this Statement prior to the time
you sign an agreement (contract) to purchase a lot.

Right to Cancel

(Under this heading the developer is to state the specific
rescission rights provided for in the contract pursuant to
1710.15(b)(5)(i)).

Risk of Buying Land

(Under this heading the developer is to list the following
information:)
There are certain risks in purchasing real estate that you should be
aware of. The following are some of those risks:
The future value of land is uncertain and dependent upon many
factors. Do not expect all land to automatically increase in value.
Any value which your lot may have will be affected if roads,
utilities and/or amenities cannot be completed or maintained.
Any development will likely have some impact on the surrounding
environment. Development which adversely affects the environment may
cause governmental agencies to impose restriction on the use of the
land.
In the purchase of real estate, many technical requirements must be
met to assure that you receive proper title and that you will be able to
use the land for its intended purpose. Since this purchase involves a

[[Page 17]]

major expenditure of money, it is recommended that you seek professional
advice before you obligate yourself.
If adequate provisions have not been made for maintenance of the
roads or if the land is not served by publicly maintained roads, you may
have to maintain the roads at your expense.
If the land is not served by a central sewage system and/or water
system, you should contact the local authorities to determine whether a
permit will be given for an on-site sewage disposal system and/or well
and whether there is an adequate supply of water. You should also become
familiar with the requirements for, and the cost of, obtaining
electrical service to the lot.

Developer Information

(Under this heading the developer is to list the following
information:)

Developer's Name:_______________________________________________________
Address:________________________________________________________________
Telephone Number:_______________________________________________________

Lot Information

(Under this heading the developer is to list the following
information:)

Lot Location:___________________________________________________________
(Enter a statement disclosing all liens, reservations, taxes,
assessments, easements and restrictions applicable to the lot. A copy of
the restrictions may be attached in lieu of recitation.)

Suppliers of Utilities and Issuers of Permits

(Under this heading the developer is to list the name, address and
phone number of the appropriate governmental agency or agencies, if any,
that will provide information on permits or other requirements for
water, sewer and electrical installations. The information will also
contain the name, address and telephone number of the suppliers of such
utilities which can provide information to the purchaser on costs and
availability of such services. A chart similar to the one below may be
used to supply this information.
Listed below are contact points for determining permit requirements,
if any, and to obtain information on approximate costs and availability
for the listed services:

------------------------------------------------------------------------
Name, Address and Telephone
Number of
-------------------------------
Governmental
agency Supplier
------------------------------------------------------------------------
Water...................................
Sewer...................................
Electricity.............................
------------------------------------------------------------------------

If misrepresentations are made in the sale of this lot to you, you
may have rights under the Interstate Land Sales Full Disclosure Act. If
you have evidence of any scheme, artifice or device used to defraud you,
you may wish to contact: Interstate Land Sales Registration Division,
HUD Building, Room 6278, 451 Seventh Street, SW., Washington, DC 20410.
(The Receipt is to be in the following form:)

Sample Receipt For Lot Information Statement

Purchaser (print or type):______________________________________________
Date:___________________________________________________________________
Signature of purchaser:_________________________________________________
Street Address:_________________________________________________________
City:___________________________________________________________________
State:__________________________________________________________________
Zip:____________________________________________________________________
Name of salesperson (print or type):____________________________________
Signature of salesperson:_______________________________________________

(c) Request for Multiple Site Subdivision Exemption. (1) The
developer must file a request for the Multiple Site Subdivision
Exemption in the following format. The request must be accompanied by a
filing fee of $500 (prepared in accordance with Sec. 1710.35 (a)) and a
sample Lot Information Statement.

Request for Multiple Site Subdivision Exemption

Developer:
Name:___________________________________________________________________
Address:________________________________________________________________
Telephone No.:__________________________________________________________
Agent:
Name:___________________________________________________________________
Address:________________________________________________________________
Telephone No.:__________________________________________________________
(Insert a general description of the developer's method of
operation.)
I affirm that I am, or will be the developer of the property and/or
method of operation described above.
I affirm that the lots in said property will be sold in compliance
with all of the requirements of 24 CFR 1710.15.
I further affirm that the statements contained in all documents
submitted with this request for an Exemption Order are true and
complete.
Date:___________________________________________________________________
Signature:______________________________________________________________
Title:__________________________________________________________________
Warning: 18 U.S.C. 1001 provides, among other things, that whoever
knowingly and willingly makes or uses a document or writing containing
any false, fictitious, or fraudulent statement or entry, in any matter
within the jurisdiction of any department or agency of the United
States, shall be fined not more than $10,000 or imprisoned for not more
than 5 years or both.

[[Page 18]]

(2) This exemption will become effective upon issuance of an
Exemption Order by the Secretary.
(d) Annual Report. (1) By January 31 of each year the developer will
send a report to the Secretary listing each site and its location
available for a sale pursuant to the exemption during the preceding year
and indicate the number of lot sales made in each site. The report will
describe any changes in the information provided in the Request for the
Multiple Site Subdivision Exemption or contain a statement that there
are no changes.
(2) The Annual Report must be accompanied by a filing fee of $100.
(3) The Annual Report must be signed and dated by the developer,
attesting to its completeness and accuracy.
(4) Failure to submit the Annual Report within ten days after the
receipt of notice from the Secretary will automatically terminate
eligibility for the exemption as of the Report due date.
(e) Termination. If, subsequent to the issuance of an Exemption
Order, the Secretary has reasonable grounds to believe that exemption
from the registration requirements in the particular case is not in the
public interest, the Secretary may, after issuing a notice and giving
the respondent an opportunity to request a hearing within fifteen days
of receipt of the notice, terminate the exemption order. The basis for
issuing a notice may be apparent omissions or misrepresentations in the
documents submitted to the Secretary, the conduct of the developer or
agent, such as unlawful conduct or insolvency, or adverse information
about the real estate that should be disclosed to purchasers.
Proceedings will be governed by 24 CFR 1720.238.

[54 FR 40866, Oct. 4, 1989]

Sec. 1710.16 Regulatory exemption--determination required.

(a) General. The Secretary may exempt from the registration
requirements of the Act any subdivision or lots in a subdivision by
issuing an order in writing if it is determined that registration is not
necessary in the public interest and for the protection of purchasers on
the basis of the small amount or limited character of the offering and
the requirements contained in paragraph (b) of this section.
(b) Eligibility requirements. An exemption order may be issued at
the discretion of the Secretary on the basis of the small amount or
limited character of the offering if the following requirements are met:
(1) The subdivision or sales substantially meet the requirements of
one of the exemptions available under this chapter.
(2) Each contract--
(i) Specifies the developer's and purchaser's responsibilities for
providing and maintaining roads, water and sewer facilities and any
existing or promised amenities;
(ii) Contains a good faith estimate of the year in which the roads,
water and sewer facilities and promised amenities will be completed;
(iii) Contains a non-waivable provision giving the purchaser the
opportunity to revoke the contract until at least midnight of the
seventh calendar day following the date the purchaser signed the
contract. If the purchaser is entitled to a longer revocation period by
operation of State law, that period becomes the Federal revocation
period and the contract must reflect the requirements of the longer
period.
(iv) Contains a provision that obligates the developer to deliver to
the purchaser within 180 days of the date the purchaser signed the sales
contract, a warranty deed, or its equivalent under local law, which at
the time of delivery is free from any monetary liens or encumbrances.
(3) The purchaser or purchaser's spouse makes a personal on-the-lot
inspection of the lot to be purchased before signing a contract.
(4) The developer files a request for an exemption order and
supporting documentation in accordance with paragraphs (c) and (d) of
this section and submits a filing fee of $500.00 in accordance with
Sec. 1710.35(a) of this part. This fee is not refundable.
(c) Request. The request for an Exemption Order must be in the
following format:

Request for Exemption Order

Subdivision_____________________________________________________________
Location (including county)_____________________________________________
Developer_______________________________________________________________

[[Page 19]]

Address_________________________________________________________________
Authorized Agent or President of Developer______________________________
_______________________________________________________________________
Address_________________________________________________________________
Number of Lots Subject to Exemption Request_____________________________
Description of Lots (list lot and block number or other identifying
designation)____________________________________________________________
_______________________________________________________________________
I affirm that I am the developer or owner of the property described
above or will be the developer or owner at the time the lots are offered
for sale to the public, or that I am the agent authorized by the
developer or owner to complete this statement.
I further affirm that the statements contained in all documents
submitted with the request for an exemption order are true and complete.

_______________________________________________________________________
(Date)
_______________________________________________________________________
(Signature of Developer, Owner or Authorized Agent)
_______________________________________________________________________
(Title)

Warning: Section 1418 of the Housing and Urban Development Act of
1968 (83 Stat. 598, 15 U.S.C. 1717 as amended) provides: ``any person
who willfully violates any of the provisions of this title or the rules
and regulations prescribed pursuant thereto * * *, shall upon conviction
be fined not more than $10,000.00 or imprisoned not more than five
years, or both.''

(d) Supporting documentation. A request for an exemption order must
be accompanied by the following documentation:
(1) A plat of the entire subdivision with the lots subject to the
exemption request delineated thereon.
(2) A copy of the contract to be used.
(3) A clear and specific statement detailing how the proposed sales
of lots subject to the exemption request substantially complies with one
of the available exemption provisions.
(4) A description of the method by which the lots have been and will
be promoted and to which population centers the promotion has been and
will be directed.
(e) The sale must also comply with the anti-fraud provisions of
Sec. 1710.4 (b) and (c) of this part.
(f) Termination. If, subsequent to the issuance of an exemption
order, the Secretary has reasonable grounds to believe that exemption
from the registration requirements in the particular case is not in the
public interest, the Secretary may, after issuing a notice and giving
the respondent an opportunity to request a hearing within fifteen days
of receipt of the notice, terminate the exemption order. The basis for
issuing a notice may be apparent omissions or misrepresentations in the
documents submitted to the Secretary, the conduct of the developer or
agent, such as unlawful conduct or insolvency, or adverse information
about the real estate that should be disclosed to purchasers.
Proceedings will be governed by Sec. 1720.238.

[45 FR 40479, June 13, 1980, as amended at 49 FR 31370, 31373, Aug. 6,
1984]

Sec. 1710.17 Advisory opinion.

(a) General. A developer may request an opinion from the Secretary
as to whether an offering qualifies for an exemption or is subject to
the jurisdiction of the Act.
(b) Requirements. All requests for Advisory Opinions must be
accompanied by the following:
(1) A $500.00 filing fee submitted in accordance with
Sec. 1710.35(a). This fee is not refundable.
(2) A comprehensive description of the conditions and operations of
the offering. There is no prescribed format for submitting this
information, but the developer should at least cite the applicable
statutory or regulatory basis for the exemption or lack of jurisdiction
and thoroughly explain how the offering either satisfies the
requirements for exemption or falls outside the purview of the Act.
(3) An affirmation as shown below:

Developer's Affirmation

Name of Subdivision_____________________________________________________
Location (Including County and State)___________________________________
Name of Developer_______________________________________________________
Address of Developer____________________________________________________
Name of Agent___________________________________________________________
Address of Agent________________________________________________________
Number of Lots in Subdivision___________________________________________
Number of Acres in Subdivision__________________________________________

I affirm that I am the developer or owner of the property described
above or will be the developer or owner at the time the lots are offered
for sale to the public, or that I am the agent authorized by the
developer or owner to complete this statement.
I further affirm that the statements contained in all documents
submitted with the request for an Advisory Opinion are true and
complete.

[[Page 20]]

_______________________________________________________________________
(Date)
_______________________________________________________________________
(Signature)
_______________________________________________________________________
(Title)

Warning: Section 1418 of the Housing and Urban Development Act of
1968 (83 Stat. 598, 15 U.S.C. 1717 as amended) provides: ``Any person
who willfully violates any of the provisions of this title or the rules
and regulations prescribed pursuant thereto * * *, shall upon conviction
be fined not more than $10,000.00 or imprisoned not more than five
years, or both.''

[45 FR 40479, June 13, 1980, as amended at 49 FR 31370, 31373, Aug. 6,
1984]

Sec. 1710.18 No action letter.

(a) If the sale of lots is subject to the registration requirements
of the Act but the circumstances of the sale are such that no
affirmative action to enforce the registration requirements is needed to
protect the public interest or prospective purchasers, the Secretary may
issue a No Action Letter.
(b) To obtain a No Action Letter a developer must submit a request
which includes a thorough description of the proposed transaction, the
property involved, and the circumstances surrounding the sale.
(c) The issuance of a No Action Letter will not affect any right
which a purchaser has under the Act, and it will not limit future action
by the Secretary if there is evidence to show that affirmative action is
necessary to protect the public interest or prospective purchasers. In
no event will a No Action Letter be issued after the sale has occurred.

[45 FR 40479, June 13, 1980]

Sec. 1710.20 Requirements for registering a subdivision--Statement of Record--filing and form.

(a) Filing. In order to register a subdivision and receive an
effective date, the developer or owner of the subdivision must file a
Statement of Record with the Secretary. The official address to be used
is:

Office of Interstate Land Sales Registration, Department of Housing and
Urban Development, 451 Seventh Street, SW., Washington, DC 20410.

When the Statement of Record is filed, a fee in the amount set out in
Sec. 1710.35(b) must be paid in accordance with Sec. 1710.35(a).
(b) Form. The Statement of Record shall be in the format specified
in Sec. 1710.100 and shall be completed in accordance with the
instructions in Secs. 1710.102, 1710.105 through 1710.118, 1710.200,
1710.208 through 1710.216 and 1710.219. It shall be supported by the
documents required by Secs. 1710.208 through 1710.216 and 1710.219. It
shall include any other information or documents which the Secretary may
require as being necessary or appropriate for the protection of
purchasers.
(c) State filings. A Statement of Record submitted under the
provisions of 24 CFR part 1710, subpart C--Certification of
Substantially Equivalent State Law, shall consist of the materials
designated by the Certification Agreement between the Secretary and the
certified State in which the subdivision is located.

(Pub. L. 90-448, 82 Stat. 476, 590; 15 U.S.C. 1701 et seq.)

[44 FR 21453, Apr. 10, 1979, as amended at 50 FR 10942, Mar. 19, 1985;
63 FR 54332, Oct. 8, 1998]

Sec. 1710.21 Effective dates.

(a) General. The effective date of an initial, consolidated or
amended Statement of Record is the 30th day after the filing of the
latest amendatory material unless the Secretary notifies the developer
in writing prior to such 30th day that:
(1) The effective date has been suspended in accordance with
Sec. 1710.45(a), or
(2) An earlier effective date has been determined.
(b) Suspension of effective date by developer. (1) A developer, or
owner, may request that the effective date of its Statement of Record be
suspended, provided there are no administrative proceedings pending
against either of them at the time the request is submitted. The request
must include any consolidations or amendments which have been made to
the initial Statement of Record. Forms for this purpose will be
furnished by the Secretary upon request.

[[Page 21]]

(2) Upon acceptance by the Secretary, the effectiveness of the
Statement of Record shall be suspended as of the date the request was
executed by the developer or owner.
(3) The suspension shall continue until the developer, or owner,
submits all amendments necessary to bring the registration into full
compliance with the Regulations which are in effect on the date of the
amendments and the Secretary allows those amendments to become
effective.

(Pub. L. 90-448, 82 Stat. 476, 590; 15 U.S.C. 1701 et seq.)

[44 FR 21453, Apr. 10, 1979, as amended at 49 FR 31370, Aug. 6, 1984]

Sec. 1710.22 Statement of record--initial or consolidated.

(a) Initial Statement of Record. (1) Except in the case of exempt
transactions, an initial Statement of Record shall be filed, and an
effective date issued, prior to selling or leasing any lot in a
subdivision.
(2) If a developer buys from another developer 100 or more lots from
an existing registration, the new developer, or owner, may have to
submit a new initial Statement of Record and receive an effective date
covering the acquired lots prior to selling or leasing any of those
lots.
(3) Changes in principals due to a sale of stock in a corporation or
changes in partners or joint venturers which are accomplished in
accordance with the partnership or joint venture agreement but which do
not cause a change in the title to the land in the subdivision may be
submitted as an amendment.
(4) Any initial Statement of Record must be accompanied by a fee, as
specified in Sec. 1710.35(b), based upon the number of lots sought to be
registered.
(b) Consolidated Statement of Record. (1) If the developer intends
to sell or lease additional lots as part of the same common promotional
plan with lots already registered, a consolidated Statement of Record
may be submitted for the additional lots. A fee, as specified in
Sec. 1710.35(b) and based on the number of additional lots, must
accompany the submission. The additional lots may not be sold or leased
until a new effective date is issued.
(2) If the additional lots are simply the result of a replatting of
lots previously registered and enumerated in the Property Report and do
not include any additional land, the change may be made by an amendment.
However, the amendment must be accompanied by a fee, as specified in
Sec. 1710.35(b), based on the number of additional lots.
(c) Consolidated Statement of Record--Form. A consolidated Statement
of Record shall contain:
(1) Those pages of the Property Report portion and Additional
Information and Documention portion which contain changes which have
occurred since the last effective submission, and
(2) A recapitulation or listing of each of the section headings, and
subheadings if necessary, of the Additional Information and
Documentation portion. Each item of the listing shall contain a
statement as to whether or not any change is made in the section;
whether any new or additional information is being submitted and, if
documentation is incorporated by cross reference, the previous
submission in which that documentation may be found, and
(3) Documentation to support the additional lots (e.g., plat maps,
topographic maps and general plan to reflect new lots, title
information, permits for additional facilities, financial assurances of
completion of additional facilities, financial statements) or updated or
expanded documents in support of previous submissions, and
(4) The affirmation required by Sec. 1710.219.

Pages having no changes and documents in previous submissions which
apply equally to the additional lots may be incorporated by reference.
However, the developer may, at its option, submit the entire format for
an initial filing, including copies of previously submitted documents,
to expedite the examination process.
(d) Consolidated Statement of Record amends prior Statement of
Record. A Consolidated Statement of Record shall contain all applicable
information for all registered lots in the subdivision except those
deleted pursuant to other provisions in these regulations. The resulting
Property Report shall be used for all sales in the subdivision, except

[[Page 22]]

for those transactions which are exempt from the provisions of the Act
or which have been granted an exempt status by the Secretary, unless the
Secretary has specifically authorized the use of multiple Property
Reports.
(e) Initial Statement of Record--when prior approval to submit is
required. In those subdivisions where there is a disparity between the
lots already registered and those sought to be registered because of
location, terrain, proposed use of the lots or the amenities to be
furnished or available, the developer may present a resume of the
differences and request the Secretary's permission to file a separate
initial Statement of Record for the additional lots. Upon consideration
of the facts submitted, the Secretary may allow such a procedure.
(f) Lots which have been deleted from registration. Should the
developer, for any reason, delete by amendment any registered lots from
an effective Statement of Record, those lots must be reregistered by a
consolidation and a new effective date issued, before they can be sold
or leased. An appropriate fee must accompany the submission.
(g) Lots sold to individual purchasers. It is not necessary to
delete from the registration those lots which have been sold to
individual purchasers for their own use.

(Pub. L. 90-448, 82 Stat. 476, 590; 15 U.S.C. 1701 et seq.)

[44 FR 21453, Apr. 10, 1979, as amended at 45 FR 40488, June 13, 1980]

Sec. 1710.23 Amendment--filing and form.

(a) Filing. If any change occurs in any representation of material
fact required to be stated in an effective Statement of Record, an
amendment shall be filed. The amendment shall be filed within 15 days of
the date on which the developer knows, or should have known, that there
has been a change in material fact.
(b) Form. An amendment shall incorporate by reference the prior
Statement of Record except for any changes in material fact. A change in
material fact shall be specifically described and supported by the same
documentation which would be required for an initial submission. Any
amendment shall be accompanied by:
(1) A letter from the developer giving a clear and concise
description of the purpose and significance of the amendment and
referring to the section and page of the Statement of Record which is
being amended, and
(2) All pages of the Statement of Record, which have been amended,
retyped in the required format to reflect the changes. The OILSR number
of the Statement of Record shall appear at the top of each page of the
material submitted.
(c) Amendments to suspended filings. Developers wishing to
reactivate a suspended filing shall file the following:
(1) Any amendments necessary to bring the filing into compliance,
submitted in accordance with paragraphs (a) and (b) of this section;
(2) An activity report in the form prescribed by Sec. 1710.310; and
(3) An amendment fee, if required under Sec. 1710.35(d)(2).

(Pub. L. 90-448, 82 Stat. 476, 590; 15 U.S.C. 1701 et seq.)

[44 FR 21453, Apr. 10, 1979, as amended at 49 FR 31373, Aug. 6, 1984]

Sec. 1710.29 Use of property report--misstatements, omissions or representation of HUD approval prohibited.

Nothing is these regulations shall be construed to authorize or
approve the use of a property report containing any untrue statement of
a material fact or omitting to state a material fact required to be
stated therein. Nor shall anything in these regulations be construed to
authorize or permit any representation that the Property Report is
prepared or approved by the Secretary, OILSR or the Department of
Housing and Urban Development.

(Pub. L. 90-448, 82 Stat. 476, 590; 15 U.S.C. 1701 et seq.)

[44 FR 21453, Apr. 10, 1979]

Sec. 1710.35 Payment of fees.

(a) Method of payment. (1) Each fee must be paid by:
(i) Certified check, cashier's check, or postal money order made
payable to the Treasurer of the United States, with the registration
number, when known, and the name, of the subdivision on the face of the
check, and

[[Page 23]]

mailed to an address specified by the Secretary; or
(ii) Electronic payment in a manner specified by the Secretary.
(2) Information regarding the current mailing address or electronic
payment procedures is available from: HUD, Office of Interstate Land
Sales/RESPA Division, Room 9156, 451 7th St., SW., Washington, DC 20410.
(b) Fees for registration. The fee for each initial and consolidated
registration is set forth in the following schedule:

------------------------------------------------------------------------
Number of lots Fees
------------------------------------------------------------------------
200 or fewer lots............................................. $800
201 or more lots.............................................. $1,000
------------------------------------------------------------------------

(c) Fee for Exemption Order or Advisory Opinion. The filing fee for
an Exemption Order or an Advisory Opinion (Sec. 1710.16 or Sec. 1710.17)
is $500. This fee is not refundable.
(d) Amendment fee. (1) A fee of $800 is charged when an Annual
Activity Report reflects an annual ending inventory of 101 or more
unsold registered lots.
(2) A fee of $800 is charged for an amendment to reactivate a
Statement of Record subsequent to its suspension, unless the developer
has 100 or fewer unsold lots included in the Statement of Record.

(Pub. L. 90-448, 82 Stat. 476, 590; 15 U.S.C. 1701 et seq.)

[44 FR 21453, Apr. 10, 1979, as amended at 49 FR 31373, Aug. 6, 1984; 63
FR 54332, Oct. 8, 1998]

Sec. 1710.45 Suspensions.

(a) Suspension notice--prior to effective date. (1) If it appears to
the Secretary that a Statement of Record or an amendment is on its face
incomplete or inaccurate in any material respect, the Secretary shall so
advise the developer, by issuing a suspension notice, within a
reasonable time after the filing of such materials but prior to the time
the materials would otherwise be effective.
(2) A suspension notice issued pursuant to this subsection shall
suspend the effective date of the Statement of Record or the amendment.
It shall continue in effect until 30 days, or such earlier date as the
Secretary may determine, after the necessary amendments are submitted
which correct all deficiencies cited in the notice.
(3) Upon receipt of a suspension notice, the developer has 15 days
in which to request a hearing. If a hearing is requested, it shall be
held within 20 days of the receipt of the request by the Secretary.
(b) Suspension orders--subsequent to effective date. (1) A notice of
proceedings to suspend an effective Statement of Record may be issued to
a developer if the Secretary has reasonable grounds to believe that an
effective Statement of Record includes an untrue statement of a material
fact, or omits a material fact required by the Act or rules and
regulations, or omits a material fact which is necessary to make the
statements therein not misleading. The Secretary may, after notice, and
after opportunity for a hearing requested pursuant to Sec. 1720.220
within 15 days of receipt of such notice, issue an order suspending the
Statement of Record. In the event that a suspension order is issued,
such order shall remain in effect until the developer has amended the
Statement of Record or otherwise complied with the requirements of the
order. When the developer has complied with the requirements of the
order, the Secretary shall so declare and thereupon the suspension order
shall cease to be effective.
(2) If the Secretary undertakes an examination of a developer or its
records to determine whether a suspension order should be issued, and
the developer fails to cooperate with the Secretary or obstructs, or
refuses to permit the Secretary to make such examination, the Secretary
may issue an order suspending the Statement of Record. Such order shall
remain in effect until the developer has complied with the requirements
of the order. When the developer has complied with the requirements of
the order, the Secretary shall so declare and thereupon the suspension
order shall cease to be effective. In accordance with the procedure
described in Sec. 1720.235, a hearing may be requested.
(3) Upon receipt of an amendment to an effective Statement of
Record, the Secretary may issue an order suspending the Statement of
Record until

[[Page 24]]

the amendment becomes effective if the Secretary has reasonable grounds
to believe that such action is necessary or appropriate in the public
interest or for the protection of purchasers. In accordance with the
procedure described in Sec. 1720.235, a hearing may be requested.
(4) Suspension orders issued pursuant to this subsection shall
operate to suspend the Statement of Record as of the date the order is
either served on the developer or its registered agent or is delivered
by certified or registered mail to the address of the developer or its
authorized agent.

(Pub. L. 90-448, 82 Stat. 476, 590; 15 U.S.C. 1701 et seq.)

[44 FR 21453, Apr. 10, 1979]