The ILSA Condo Exemption – Not Out of the Woods Yet
The Interstate Land Sales Full Disclosure Act (ILSA) is a federal statute that aims to prevent land sales fraud and uninformed purchases of unimproved real property by requiring registration of subdivisions with the Consumer Financial Protection Bureau and pre-contract consumer disclosure of a property report. ILSA includes among its remedies an automatic right of rescission, even for closed transactions and without any proof of harm, and it therefore has been a popular statute for bringing buyer’s remorse claims when the real estate market suffers a downturn. Since there are several drawbacks to registering under ILSA – including cost, time, administration, and substantive purchase contract requirements – developers generally seek to obtain the advantage of an exemption. Read the article…………..