15 U.S.C. § 1703 : US Code - Section 1703: Requirements respecting sale or lease of lots

Search 15 U.S.C. § 1703 : US Code - Section 1703: Requirements respecting sale or lease of lots

(a) Prohibited activities
It shall be unlawful for any developer or agent, directly or
indirectly, to make use of any means or instruments of
transportation or communication in interstate commerce, or of the
mails -
(1) with respect to the sale or lease of any lot not exempt
under section 1702 of this title -
(A) to sell or lease any lot unless a statement of record
with respect to such lot is in effect in accordance with
section 1706 of this title;
(B) to sell or lease any lot unless a printed property
report, meeting the requirements of section 1707 of this title,
has been furnished to the purchaser or lessee in advance of the
signing of any contract or agreement by such purchaser or
lessee;
(C) to sell or lease any lot where any part of the statement
of record or the property report contained an untrue statement
of a material fact or omitted to state a material fact required
to be stated therein pursuant to sections 1704 through 1707 of
this title or any regulations thereunder; or
(D) to display or deliver to prospective purchasers or
lessees advertising and promotional material which is
inconsistent with information required to be disclosed in the
property report; or
(2) with respect to the sale or lease, or offer to sell or
lease, any lot not exempt under section 1702(a) of this title -
(A) to employ any device, scheme, or artifice to defraud;
(B) to obtain money or property by means of any untrue
statement of a material fact, or any omission to state a
material fact necessary in order to make the statements made
(in light of the circumstances in which they were made and
within the context of the overall offer and sale or lease) not
misleading, with respect to any information pertinent to the
lot or subdivision;
(C) to engage in any transaction, practice, or course of
business which operates or would operate as a fraud or deceit
upon a purchaser; or
(D) to represent that roads, sewers, water, gas, or electric
service, or recreational amenities will be provided or
completed by the developer without stipulating in the contract
of sale or lease that such services or amenities will be
provided or completed.
(b) Revocation of nonexempt contract or agreement at option of
purchaser or lessee; time limit
Any contract or agreement for the sale or lease of a lot not
exempt under section 1702 of this title may be revoked at the
option of the purchaser or lessee until midnight of the seventh day
following the signing of such contract or agreement or until such
later time as may be required pursuant to applicable State laws,
and such contract or agreement shall clearly provide this right.
(c) Revocation of contract or agreement at option of purchaser or
lessee where required property report not supplied
In the case of any contract or agreement for the sale or lease of
a lot for which a property report is required by this chapter and
the property report has not been given to the purchaser or lessee
in advance of his or her signing such contract or agreement, such
contract or agreement may be revoked at the option of the purchaser
or lessee within two years from the date of such signing, and such
contract or agreement shall clearly provide this right.
(d) Additional authority for revocation of nonexempt contract or
agreement at option of purchaser or lessee; time limit;
applicability
Any contract or agreement which is for the sale or lease of a lot
not exempt under section 1702 of this title and which does not
provide -
(1) a description of the lot which makes such lot clearly
identifiable and which is in a form acceptable for recording by
the appropriate public official responsible for maintaining land
records in the jurisdiction in which the lot is located;
(2) that, in the event of a default or breach of the contract
or agreement by the purchaser or lessee, the seller or lessor (or
successor thereof) will provide the purchaser or lessee with
written notice of such default or breach and of the opportunity,
which shall be given such purchaser or lessee, to remedy such
default or breach within twenty days after the date of the
receipt of such notice; and
(3) that, if the purchaser or lessee loses rights and interest
in the lot as a result of a default or breach of the contract or
agreement which occurs after the purchaser or lessee has paid 15
per centum of the purchase price of the lot, excluding any
interest owed under the contract or agreement, the seller or
lessor (or successor thereof) shall refund to such purchaser or
lessee any amount which remains after subtracting (A) 15 per
centum of the purchase price of the lot, excluding any interest
owed under the contract or agreement, or the amount of damages
incurred by the seller or lessor (or successor thereof) as a
result of such breach, whichever is greater, from (B) the amount
paid by the purchaser or lessee with respect to the purchase
price of the lot, excluding any interest paid under the contract
or agreement,
may be revoked at the option of the purchaser or lessee for two
years from the date of the signing of such contract or agreement.
This subsection shall not apply to the sale of a lot for which,
within one hundred and eighty days after the signing of the sales
contract, the purchaser receives a warranty deed (or, where such
deed is not commonly used in the jurisdiction where the lot is
located, a deed or grant that warrants at least that the grantor
has not conveyed the lot to another person and that the lot is free
from encumbrances made by the grantor or any other person claiming
by, through, or under him or her).
(e) Repayment of purchaser or lessee upon revocation of all money
paid under contract or agreement to seller or lessor
If a contract or agreement is revoked pursuant to subsection (b),
(c), or (d) of this section, if the purchaser or lessee tenders to
the seller or lessor (or successor thereof) an instrument conveying
his or her rights and interests in the lot, and if the rights and
interests and the lot are in a condition which is substantially
similar to the condition in which they were conveyed or purported
to be conveyed to the purchaser or lessee, such purchaser or lessee
shall be entitled to all money paid by him or her under such
contract or agreement.