[Congressional Record (Bound Edition), Volume 158 (2012), Part 10]
[Extensions of Remarks]
[Page 13423]
[From the U.S. Government Publishing Office, www.gpo.gov]




      INTRODUCTION OF THE INTERSTATE LAND SALES UPDATE ACT OF 2012

                                 ______
                                 

                        HON. CAROLYN B. MALONEY

                              of new york

                    in the house of representatives

                        Thursday, August 2, 2012

  Mrs. MALONEY. Mr. Speaker, I rise along with my colleague Rep. 
McHenry to introduce the Interstate Land Sales Disclosure Act Update of 
2012.
  The Interstate Land Sales Disclosure Act was enacted in 1969 to 
protect consumers from being sold property where the property's 
description in the contract and related materials was not what was to 
be delivered to the buyer.
  It was intended to protect out-of-state buyers who were sold land 
that was not what was advertised and provides a right of action to 
rescind the contract and walk away from the deal. However, Courts have 
ruled over the years that ISLA applies to condominiums, and developers 
are required to file redundant paperwork that is unnecessary and out of 
keeping with modern condominium development.
  During the economic downturn, some buyers have used the recording 
requirements of ILSA to rescind otherwise valid contracts for economic 
reasons, an unintended consequence of the act and its intent. The law 
now needs a technical fix to distinguish condominium sales from other 
types of land sales and to recognize the unique conditions under which 
these units are sold in today's market.
  I fully support the consumer protections that were enacted through 
ILSA, and this proposed legislation does nothing to affect those 
protections. But I also believe that we need to make distinctions for 
condominiums in order to allow the condominium development industry to 
rebound from the recession. The bill would only exempt condominiums 
from ILSA's registration requirements but will maintain the consumer 
protections to ensure consumers still have the right to rescind 
contracts in cases of fraud. Developers would, of course, still be 
required to comply with state laws that require specific disclosures.
  As we recover in this still fragile economy, we want to encourage, 
not discourage, buyers and sellers to enter into real estate deals 
responsibly.
  That is why this bill is important to ensure development and the 
return of an important industry in our country, residential condominium 
sales. I urge my colleagues to support this legislation.

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