Collapse to view only § 1703. Requirements respecting sale or lease of lots
- § 1701. Definitions
- § 1702. Exemptions
- § 1703. Requirements respecting sale or lease of lots
- § 1704. Registration of subdivisions
- § 1705. Information required in statement of record
- § 1706. Effective date of statements of record and amendments thereto
- § 1707. Property report
- § 1708. Certification of substantially equivalent State law
- § 1709. Civil liabilities
- § 1710. Court review of orders
- § 1711. Limitation of actions
- § 1712. Contrary stipulations void
- § 1713. Additional remedies
- § 1714. Investigations, injunctions, and prosecution of offenses
- § 1715. Administration
- § 1716. Unlawful representations
- § 1717. Penalties for violations
- § 1717a. Civil money penalties
- § 1718. Rules, regulations, and orders
- § 1719. Jurisdiction of offenses and suits
- § 1719a. Repealed.
- § 1720. Authorization of appropriations
§ 1701. Definitions
For the purposes of this chapter, the term—
(1) “Director” means the Director of the Bureau of Consumer Financial Protection;
(2) “person” means an individual, or an unincorporated organization, partnership, association, corporation, trust, or estate;
(3) “subdivision” means any land which is located in any State or in a foreign country and is divided or is proposed to be divided into lots, whether contiguous or not, for the purpose of sale or lease as part of a common promotional plan;
(4) “common promotional plan” means a plan, undertaken by a single developer or a group of developers acting in concert, to offer lots for sale or lease; where such land is offered for sale by such a developer or group of developers acting in concert, and such land is contiguous or is known, designated, or advertised as a common unit or by a common name, such land shall be presumed, without regard to the number of lots covered by each individual offering, as being offered for sale or lease as part of a common promotional plan;
(5) “developer” means any person who, directly or indirectly, sells or leases, or offers to sell or lease, or advertises for sale or lease any lots in a subdivision;
(6) “agent” means any person who represents, or acts for or on behalf of, a developer in selling or leasing, or offering to sell or lease, any lot or lots in a subdivision; but shall not include an attorney at law whose representation of another person consists solely of rendering legal services;
(7) “blanket encumbrance” means a trust deed, mortgage, judgment, or any other lien or encumbrance, including an option or contract to sell or a trust agreement, affecting a subdivision or affecting more than one lot offered within a subdivision except that such term shall not include any lien or other encumbrance arising as the result of the imposition of any tax assessment by any public authority;
(8) “interstate commerce” means trade or commerce among the several States or between any foreign country and any State;
(9) “State” includes the several States, the District of Columbia, the Commonwealth of Puerto Rico, and the territories and possessions of the United States;
(10) “purchaser” means an actual or prospective purchaser or lessee of any lot in a subdivision;
(11) “offer” includes any inducement, solicitation, or attempt to encourage a person to acquire a lot in a subdivision; and
(12) “Bureau” means the Bureau of Consumer Financial Protection.
(Pub. L. 90–448, title XIV, § 1402, Aug. 1, 1968, 82 Stat. 590; Pub. L. 93–383, title VIII, § 812(a), Aug. 22, 1974, 88 Stat. 736; Pub. L. 96–153, title IV, § 401, Dec. 21, 1979, 93 Stat. 1122; Pub. L. 100–628, title X, § 1089(a), Nov. 7, 1988, 102 Stat. 3283; Pub. L. 111–203, title X, § 1098A(4), July 21, 2010, 124 Stat. 2105.)
§ 1702. Exemptions
(a) Sale or lease of lots generallyUnless the method of disposition is adopted for the purpose of evasion of this chapter, the provisions of this chapter shall not apply to—
(1) the sale or lease of lots in a subdivision containing less than twenty-five lots;
(2) the sale or lease of any improved land on which there is a residential, commercial, condominium, or industrial building, or the sale or lease of land under a contract obligating the seller or lessor to erect such a building thereon within a period of two years;
(3) the sale of evidence of indebtedness secured by a mortgage or deed of trust on real estate;
(4) the sale of securities issued by a real estate investment trust;
(5) the sale or lease of real estate by any government or government agency;
(6) the sale or lease of cemetery lots;
(7) the sale or lease of lots to any person who acquires such lots for the purpose of engaging in the business of constructing residential, commercial, or industrial buildings or for the purpose of resale or lease of such lots to persons engaged in such business; or
(8) the sale or lease of real estate which is zoned by the appropriate governmental authority for industrial or commercial development or which is restricted to such use by a declaration of covenants, conditions, and restrictions which has been recorded in the official records of the city or county in which such real estate is located, when—
(A) local authorities have approved access from such real estate to a public street or highway;
(B) the purchaser or lessee of such real estate is a duly organized corporation, partnership, trust, or business entity engaged in commercial or industrial business;
(C) the purchaser or lessee of such real estate is represented in the transaction of sale or lease by a representative of its own selection;
(D) the purchaser or lessee of such real estate affirms in writing to the seller or lessor that it either (i) is purchasing or leasing such real estate substantially for its own use, or (ii) has a binding commitment to sell, lease, or sublease such real estate to an entity which meets the requirements of subparagraph (B), is engaged in commercial or industrial business, and is not affiliated with the seller, lessor, or agent thereof; and
(E) a policy of title insurance or a title opinion is issued in connection with the transaction showing that title to the real estate purchased or leased is vested in the seller or lessor, subject only to such exceptions as may be approved in writing by such purchaser or the lessee prior to recordation of the instrument of conveyance or execution of the lease, but (i) nothing herein shall be construed as requiring the recordation of a lease, and (ii) any purchaser or lessee may waive, in writing in a separate document, the requirement of this subparagraph that a policy of title insurance or title opinion be issued in connection with the transaction.
(b) Sale or lease of lots subject to other statutory registration and disclosure requirementsUnless the method of disposition is adopted for the purpose of evasion of this chapter, the provisions requiring registration and disclosure (as specified in section 1703(a)(1) of this title and sections 1704 through 1707 of this title) shall not apply to—
(1) the sale or lease of lots in a subdivision containing fewer than one hundred lots which are not exempt under subsection (a);
(2) the sale or lease of lots in a subdivision if, within the twelve-month period commencing on the date of the first sale or lease of a lot in such subdivision after the effective date of this subsection, or on such other date within that twelve-month period as the Director may prescribe, not more than twelve lots are sold or leased, and the sale or lease of the first twelve lots in such subdivision in any subsequent twelve-month period, if not more than twelve lots have been sold or leased in any preceding twelve-month period after the effective date of this subsection;
(3) the sale or lease of lots in a subdivision if each noncontiguous part of such subdivision contains not more than twenty lots, and if the purchaser or lessee (or spouse thereof) has made a personal, on-the-lot inspection of the lot purchased or leased, prior to signing of the contract or agreement to purchase or lease;
(4) the sale or lease of lots in a subdivision in which each of the lots is at least twenty acres (inclusive of easements for ingress and egress or public utilities);
(5) the sale or lease of a lot which is located within a municipality or county where a unit of local government specifies minimum standards for the development of subdivision lots taking place within its boundaries, when—
(A)
(i) the subdivision meets all local codes and standards, and (ii) each lot is either zoned for single family residences or, in the absence of a zoning ordinance, is limited exclusively to single family residences;
(B)
(i) the lot is situated on a paved street or highway which has been built to standards applicable to streets and highways maintained by the unit of local government in which the subdivision is located and is acceptable to such unit, or, where such street or highway is not complete, a bond or other surety acceptable to the municipality or county in the full amount of the cost of completing such street or highway has been posted to assure completion to such standards, and (ii) the unit of local government or a homeowners association has accepted or is obligated to accept the responsibility of maintaining such street or highway, except that, in any case in which a homeowners association has accepted or is obligated to accept such responsibility, a good faith written estimate of the cost of carrying out such responsibility over the first ten years of ownership or lease is provided to the purchaser or lessee prior to the signing of the contract or agreement to purchase or lease;
(C) at the time of closing, potable water, sanitary sewage disposal, and electricity have been extended to the lot or the unit of local government is obligated to install such facilities within one hundred and eighty days, and, for subdivisions which do not have a central water or sewage disposal system, rather than installation of water or sewer facilities, 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;
(D) the contract of sale requires delivery of a warranty deed (or, where such deed is not commonly used in the jurisdiction where the lot is located, a deed or grant which warrants 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) to the purchaser within one hundred and eighty days after the signing of the sales contract;
(E) at the time of closing, a title insurance binder or a title opinion reflecting the condition of the title shall be in existence and issued or presented to the purchaser or lessee showing that, subject only to such exceptions as may be approved in writing by the purchaser or lessee at the time of closing, marketable title to the lot is vested in the seller or lessor;
(F) the purchaser or lessee (or spouse thereof) has made a personal, on-the-lot inspection of the lot purchased or leased, prior to signing of the contract or agreement to purchase or lease; and
(G) there are no offers, by direct mail or telephone solicitation, of gifts, trips, dinners, or other such promotional techniques to induce prospective purchasers or lessees to visit the subdivision or to purchase or lease a lot;
(6) the sale or lease of a lot, if a mobile home is to be erected or placed thereon as a residence, where the lot is sold as a homesite by one party and the home by another, under contracts that obligate such sellers to perform, contingent upon the other seller carrying out its obligations so that a completed mobile home will be erected or placed on the completed homesite within a period of two years, and provide for all funds received by the sellers to be deposited in escrow accounts (controlled by parties independent of the sellers) until the transactions are completed, and further provide that such funds shall be released to the buyer on demand without prejudice if the land with the mobile home erected or placed thereon is not conveyed within such two-year period. Such homesite must conform to all local codes and standards for mobile home subdivisions, if any, must provide potable water, sanitary sewage disposal, electricity, access by roads, the purchaser must receive marketable title to the lot, and where common facilities are to be provided, they must be completed or fully funded;
(7)
(A) the sale or lease of real estate by a developer who is engaged in a sales operation which is intrastate in nature. For purposes of this exemption, a lot may be sold only if—
(i) the lot is free and clear of all liens, encumbrances, and adverse claims;
(ii) the purchaser or lessee (or spouse thereof) has made a personal on-the-lot inspection of the lot to be purchased or leased;
(iii) each purchase or lease agreement contains—(I) a clear and specific statement describing a good faith estimate of the year of completion of, and the party responsible for, providing and maintaining the roads, water facilities, sewer facilities and any existing or promised amenities; and(II) a nonwaivable provision specifying that the contract or agreement 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
(iv) the purchaser or lessee has, prior to the time the contract or lease is entered into, acknowledged in writing the receipt of a written statement by the developer containing good faith estimates of the cost of providing electric, water, sewer, gas, and telephone service to such lot.
(B) As used in subparagraph (A)(i) of this paragraph, the terms “liens”, “encumbrances”, and “adverse claims” do not include United States land patents and similar Federal grants or reservations, property reservations which land developers commonly convey or dedicate to local bodies or public utilities for the purpose of bringing public services to the land being developed, taxes and assessments imposed by a State, by any other public body having authority to assess and tax property, or by a property owners’ association, which, under applicable State or local law, constitute liens on the property before they are due and payable or beneficial property restrictions which would be enforceable by other lot owners or lessees in the subdivision, if—
(i) the developer, prior to the time the contract of sale or lease is entered into, has furnished each purchaser or lessee with a statement setting forth in descriptive and concise terms all such liens, reservations, taxes, assessments and restrictions which are applicable to the lot to be purchased or leased; and
(ii) receipt of such statement has been acknowledged in writing by the purchaser or lessee.
(C) For the purpose of this paragraph, a sales operation is “intrastate in nature” if the developer is subject to the laws of the State in which the land is located, and each lot in the subdivision, other than those which are exempt under subsection (a), (b)(6), or (b)(8), is sold or leased to residents of the State in which the land is located;
(8) the sale or lease of a lot in a subdivision containing fewer than three hundred lots if—
(A) the principal residence of the purchaser or lessee is within the same standard metropolitan statistical area, as defined by the Office of Management and Budget, as the lot purchased or leased;
(B) the lot is free and clear of liens (such as mortgages, deeds of trust, tax liens, mechanics liens, or judgments) at the time of the signing of the contract or agreement and until a deed is delivered to the purchaser or the lease expires. As used in this subparagraph, the term “liens” does not include (i) United States land patents and similar Federal grants or reservations, (ii) property reservations which land developers commonly convey or dedicate to local bodies or public utilities for the purpose of bringing public services to the land being developed, (iii) taxes and assessments imposed by a State, by any other public body having authority to assess and tax property, or by a property owners’ association, which, under applicable State or local law, constitute liens on the property before they are due and payable or beneficial property restrictions which would be enforceable by other lot owners or lessees in the subdivision, or (iv) other interests described in regulations prescribed by the Director;
(C) the purchaser or lessee (or spouse thereof) has made a personal on-the-lot inspection of the lot to be purchased or leased;
(D) each purchase or lease agreement contains (i) a clear and specific statement describing a good faith estimate of the year of completion of and the party responsible for providing and maintaining the roads, water facilities, sewer facilities and any existing or promised amenities; and (ii) a nonwaivable provision specifying that the contract or agreement 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;
(E) the purchaser or lessee has, prior to the time the contract or lease is entered into, acknowledged in writing receipt of a written statement by the developer setting forth (i) in descriptive and concise terms all liens, reservations, taxes, assessments, beneficial property restrictions which would be enforceable by other lot owners or lessees in the subdivision, and adverse claims which are applicable to the lot to be purchased or leased, and (ii) good faith estimates of the cost of providing electric, water, sewer, gas, and telephone service to such lot;
(F) the developer executes and supplies to the purchaser a written instrument designating a person within the State of residence of the purchaser as his agent for service of process and acknowledging that the developer submits to the legal jurisdiction of the State in which the purchaser or lessee resides; and
(G) the developer executes a written affirmation to the effect that he has complied with the provisions of this paragraph, such affirmation to be given on a form provided by the Director, which shall include the following: the name and address of the developer; the name and address of the purchaser or lessee; a legal description of the lot; an affirmation that the provisions of this paragraph have been complied with; a statement that the developer submits to the jurisdiction of this title with regard to the sale or lease; and the signature of the developer; or
(9) the sale or lease of a condominium unit that is not exempt under subsection (a).
(c) Rules and regulations
(d) “Condominium unit” definedFor purposes of subsection (b), the term “condominium unit” means a unit of residential or commercial property to be designated for separate ownership pursuant to a condominium plan or declaration provided that upon conveyance—
(1) the owner of such unit will have sole ownership of the unit and an undivided interest in the common elements appurtenant to the unit; and
(2) the unit will be an improved lot.
(Pub. L. 90–448, title XIV, § 1403, Aug. 1, 1968, 82 Stat. 590; Pub. L. 91–152, title IV, § 411, Dec. 24, 1969, 83 Stat. 398; Pub. L. 93–383, title VIII, § 812(b), Aug. 22, 1974, 88 Stat. 736; Pub. L. 95–557, title IX, § 907, Oct. 31, 1978, 92 Stat. 2127; Pub. L. 96–153, title IV, § 402, Dec. 21, 1979, 93 Stat. 1123; Pub. L. 111–203, title X, § 1098A(1), July 21, 2010, 124 Stat. 2105; Pub. L. 113–167, § 1(a), Sept. 26, 2014, 128 Stat. 1882.)
§ 1703. Requirements respecting sale or lease of lots
(a) Prohibited activitiesIt 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
(c) Revocation of contract or agreement at option of purchaser or lessee where required property report not supplied
(d) Additional authority for revocation of nonexempt contract or agreement at option of purchaser or lessee; time limit; applicabilityAny 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
(Pub. L. 90–448, title XIV, § 1404, Aug. 1, 1968, 82 Stat. 591; Pub. L. 93–383, title VIII, § 812(c)(1), Aug. 22, 1974, 88 Stat. 737; Pub. L. 96–153, title IV, § 403, Dec. 21, 1979, 93 Stat. 1127.)
§ 1704. Registration of subdivisions
(a) Filing of statement of record
(b) Payment of fees; use by Director
(c) Filing deemed to have taken place upon receipt of statement of record accompanied by fee
(d) Availability of information to public
(Pub. L. 90–448, title XIV, § 1405, Aug. 1, 1968, 82 Stat. 592; Pub. L. 111–203, title X, § 1098A(1), July 21, 2010, 124 Stat. 2105.)
§ 1705. Information required in statement of record
The statement of record shall contain the information and be accompanied by the documents specified hereinafter in this section—
(1) the name and address of each person having an interest in the lots in the subdivision to be covered by the statement of record and the extent of such interest;
(2) a legal description of, and a statement of the total area included in, the subdivision and a statement of the topography thereof, together with a map showing the division proposed and the dimensions of the lots to be covered by the statement of record and their relation to existing streets and roads;
(3) a statement of the condition of the title to the land comprising the subdivision, including all encumbrances and deed restrictions and covenants applicable thereto;
(4) a statement of the general terms and conditions, including the range of selling prices or rents at which it is proposed to dispose of the lots in the subdivision;
(5) a statement of the present condition of access to the subdivision, the existence of any unusual conditions relating to noise or safety which affect the subdivision and are known to the developer, the availability of sewage disposal facilities and other public utilities (including water, electricity, gas, and telephone facilities) in the subdivision, the proximity in miles of the subdivision to nearby municipalities, and the nature of any improvements to be installed by the developer and his estimated schedule for completion;
(6) in the case of any subdivision or portion thereof against which there exists a blanket encumbrance, a statement of the consequences for an individual purchaser of a failure, by the person or persons bound, to fulfill obligations under the instrument or instruments creating such encumbrance and the steps, if any, taken to protect the purchaser in such eventuality;
(7)
(A) copy of its articles of incorporation, with all amendments thereto, if the developer is a corporation; (B) copies of all instruments by which the trust is created or declared, if the developer is a trust; (C) copies of its articles of partnership or association and all other papers pertaining to its organization, if the developer is a partnership, unincorporated association, joint stock company, or any other form of organization; and (D) if the purported holder of legal title is a person other than developer, copies of the above documents for such person;
(8) copies of the deed or other instrument establishing title to the subdivision in the developer or other person and copies of any instrument creating a lien or encumbrance upon the title of developer or other person or copies of the opinion or opinions of counsel in respect to the title to the subdivision in the developer or other person or copies of the title insurance policy guaranteeing such title;
(9) copies of all forms of conveyance to be used in selling or leasing lots to purchasers;
(10) copies of instruments creating easements or other restrictions;
(11) such certified and uncertified financial statements of the developer as the Director may require; and
(12) such other information and such other documents and certifications as the Director may require as being reasonably necessary or appropriate for the protection of purchasers.
(Pub. L. 90–448, title XIV, § 1406, Aug. 1, 1968, 82 Stat. 592; Pub. L. 91–609, title IX, § 909, Dec. 31, 1970, 84 Stat. 1811; Pub. L. 111–203, title X, § 1098A(1), July 21, 2010, 124 Stat. 2105.)
§ 1706. Effective date of statements of record and amendments thereto
(a) Thirtieth day after filing or such earlier date as determined by Director; consolidation of subsequent statement with earlier recording
(b) Incomplete or inaccurate statements of record
(c) Amendment of statement of record
(d) Suspension of statement of record containing untrue statement or omission to state material fact; notice and hearing; termination of order of suspension
(e) Examination to determine issuance of order; access to records; order suspending statement of record upon failure to cooperate
(f) Service of notices
(Pub. L. 90–448, title XIV, § 1407, Aug. 1, 1968, 82 Stat. 593; Pub. L. 111–203, title X, § 1098A(1), July 21, 2010, 124 Stat. 2105.)
§ 1707. Property report
(a) Contents of report
(b) Promotional use
(Pub. L. 90–448, title XIV, § 1408, Aug. 1, 1968, 82 Stat. 594; Pub. L. 111–203, title X, § 1098A(1), July 21, 2010, 124 Stat. 2105.)
§ 1708. Certification of substantially equivalent State law
(a) Criteria; request by State
(1) A State shall be certified if the Director determines—
(A) that, when taken as a whole, the laws and regulations of the State applicable to the sale or lease of lots not exempt under section 1702 of this title require the seller or lessor of such lots to disclose information which is at least substantially equivalent to the information required to be disclosed by section 1707 of this title; and
(B) that the State’s administration of such laws and regulations provides, to the maximum extent practicable, that such information is accurate.
(2) In the case of any State which is not certified under paragraph (1), such State shall be certified if the Director determines—
(A) that, when taken as a whole, the laws and regulations of the State applicable to the sale or lease of lots not exempt under section 1702 of this title provide sufficient protection for purchasers and lessees with respect to the matters for which information is required to be disclosed by section 1707 of this title but which is not required to be disclosed by such State’s laws and regulations; and
(B) that the State’s administration of such laws and regulations provides, to the maximum extent practicable, that (i) information required to be disclosed by such laws and regulations is accurate, and (ii) sufficient protection for purchasers and lessees is made available with respect to the matters for which information is not required to be disclosed.
(3) Any State requesting certification must agree to accept a property report covering land located in another certified State but offered for sale or lease in the State requesting certification if the property report has been approved by the other certified State. Such property report shall be the only property report required by the State with respect to the sale or lease of such land.
(b) Filing of State disclosure materials and related documentation for purposes of Federal statement of record and property report requirements; acceptance by Director
(c) Notice to State upon failure to meet requirements and remedial action necessary for certification
(d) Periodic review of certified States’ laws, regulations, and administration; withdrawal of certification
(e) State and local governmental authorities affected; cooperation with State authorities
(Pub. L. 90–448, title XIV, § 1409, Aug. 1, 1968, 82 Stat. 594; Pub. L. 96–153, title IV, § 404, Dec. 21, 1979, 93 Stat. 1129; Pub. L. 111–203, title X, § 1098A(1), July 21, 2010, 124 Stat. 2105.)
§ 1709. Civil liabilities
(a) Violations; relief recoverable
(b) Enforcement of rights by purchaser or lessee
(c) Amounts recoverable
(d) Contributions
(Pub. L. 90–448, title XIV, § 1410, Aug. 1, 1968, 82 Stat. 595; Pub. L. 96–153, title IV, § 405, Dec. 21, 1979, 93 Stat. 1130.)
§ 1710. Court review of orders
(a) Petition; jurisdiction; findings of Director; additional evidence; finality
(b) Stay of order
(Pub. L. 90–448, title XIV, § 1411, Aug. 1, 1968, 82 Stat. 595; Pub. L. 111–203, title X, § 1098A(1), July 21, 2010, 124 Stat. 2105.)
§ 1711. Limitation of actions
(a) Section 1703(a) violations
No action shall be maintained under section 1709 of this title with respect to—
(1) a violation of subsection (a)(1) or (a)(2)(D) of section 1703 of this title more than three years after the date of signing of the contract of sale or lease; or
(2) a violation of subsection (a)(2)(A), (a)(2)(B), or (a)(2)(C) of section 1703 of this title more than three years after discovery of the violation or after discovery should have been made by the exercise of reasonable diligence.
(b) Section 1703(b) to (e) violations
(Pub. L. 90–448, title XIV, § 1412, Aug. 1, 1968, 82 Stat. 596; Pub. L. 96–153, title IV, § 406, Dec. 21, 1979, 93 Stat. 1131.)
§ 1712. Contrary stipulations void
Any condition, stipulation, or provision binding any person acquiring any lot in a subdivision to waive compliance with any provision of this chapter or of the rules and regulations of the Director shall be void.
(Pub. L. 90–448, title XIV, § 1413, Aug. 1, 1968, 82 Stat. 596; Pub. L. 111–203, title X, § 1098A(1), July 21, 2010, 124 Stat. 2105.)
§ 1713. Additional remedies
The rights and remedies provided by this chapter shall be in addition to any and all other rights and remedies that may exist at law or in equity.
(Pub. L. 90–448, title XIV, § 1414, Aug. 1, 1968, 82 Stat. 596.)
§ 1714. Investigations, injunctions, and prosecution of offenses
(a) Permanent or temporary injunction or restraining order; jurisdiction
(b) Investigations; publication of information concerning violations
(c) Oaths and affirmations; subpena power
(d) Contempt; court order requiring attendance and testimony of witnesses; jurisdiction
(Pub. L. 90–448, title XIV, § 1415, Aug. 1, 1968, 82 Stat. 596; Pub. L. 91–452, title II, § 220, Oct. 15, 1970, 84 Stat. 929; Pub. L. 111–203, title X, § 1098A(1), July 21, 2010, 124 Stat. 2105.)
§ 1715. Administration
(a) Delegation of functions, duties, and powers; scope of delegations; appointment, etc., of delegates; right of appeal
(b) Hearings
(c) Procedures applicable
(Pub. L. 90–448, title XIV, § 1416, Aug. 1, 1968, 82 Stat. 597; Pub. L. 95–251, § 2(a)(5), Mar. 27, 1978, 92 Stat. 183; Pub. L. 95–454, title VIII, § 801(a)(3)(J), Oct. 13, 1978, 92 Stat. 1222; Pub. L. 96–153, title IV, § 407, Dec. 21, 1979, 93 Stat. 1131; Pub. L. 98–479, title II, § 202(d), Oct. 17, 1984, 98 Stat. 2228; Pub. L. 111–203, title X, § 1098A(1)–(3), (5), July 21, 2010, 124 Stat. 2105.)
§ 1716. Unlawful representations
The fact that a statement of record with respect to a subdivision has been filed or is in effect shall not be deemed a finding by the Director that the statement of record is true and accurate on its face, or be held to mean the Director has in any way passed upon the merits of, or given approval to, such subdivision. It shall be unlawful to make, or cause to be made, to any prospective purchaser any representation contrary to the foregoing.
(Pub. L. 90–448, title XIV, § 1417, Aug. 1, 1968, 82 Stat. 598; Pub. L. 111–203, title X, § 1098A(1), July 21, 2010, 124 Stat. 2105.)
§ 1717. Penalties for violations
Any person who willfully violates any of the provisions of this chapter, or the rules and regulations prescribed pursuant thereto, or any person who willfully, in a statement of record filed under, or in a property report issued pursuant to, this chapter, makes any untrue statement of a material fact or omits to state any material fact required to be stated therein, shall upon conviction be fined not more than $10,000 or imprisoned not more than five years, or both.
(Pub. L. 90–448, title XIV, § 1418, Aug. 1, 1968, 82 Stat. 598; Pub. L. 96–153, title IV, § 408, Dec. 21, 1979, 93 Stat. 1132.)
§ 1717a. Civil money penalties
(a) In general
(1) Authority
(2) Amount of penalty
(b) Agency procedures
(1) Establishment
The Director shall establish standards and procedures governing the imposition of civil money penalties under subsection (a). The standards and procedures—
(A) shall provide for the imposition of a penalty only after a person has been given an opportunity for a hearing on the record; and
(B) may provide for review by the Director of any determination or order, or interlocutory ruling, arising from a hearing.
(2) Final orders
(3) Factors in determining amount of penalty
(4) Reviewability of imposition of penalty
(c) Judicial review of agency determination
(1) In general
(2) Order to pay penalty
(d) Action to collect penalty
(e) Settlement by Director
(f) “Knowingly” defined
(g) Regulations
(h) Use of penalties for administration
(Pub. L. 90–448, title XIV, § 1418a, as added Pub. L. 101–235, title I, § 111(a), Dec. 15, 1989, 103 Stat. 2014; amended Pub. L. 111–203, title X, § 1098A(1), July 21, 2010, 124 Stat. 2105.)
§ 1718. Rules, regulations, and orders
The Director shall have authority from time to time to make, issue, amend, and rescind such rules and regulations and such orders as are necessary or appropriate to the exercise of the functions and powers conferred upon him elsewhere in this chapter. For the purpose of his rules and regulations, the Director may classify persons and matters within his jurisdiction and prescribe different requirements for different classes of persons or matters.
(Pub. L. 90–448, title XIV, § 1419, Aug. 1, 1968, 82 Stat. 598; Pub. L. 111–203, title X, § 1098A(1), July 21, 2010, 124 Stat. 2105.)
§ 1719. Jurisdiction of offenses and suits
The district courts of the United States, the United States courts of any territory, and the United States District Court for the District of Columbia shall have jurisdiction of offenses and violations under this chapter and under the rules and regulations prescribed by the Director pursuant thereto, and concurrent with State courts, of all suits in equity and actions at law brought to enforce any liability or duty created by this chapter. Any such suit or action may be brought to enforce any liability or duty created by this chapter. Any such suit or action may be brought in the district wherein the defendant is found or is an inhabitant or transacts business, or in the district where the offer or sale took place, if the defendant participated therein, and process in such cases may be served in any other district of which the defendant is an inhabitant or wherever the defendant may be found. Judgments and decrees so rendered shall be subject to review as provided in sections 1254 and 1291 of title 28. No case arising under this chapter and brought in any State court of competent jurisdiction shall be removed to any court of the United States, except where the United States or any officer or employee of the United States in his official capacity is a party. No costs shall be assessed for or against the Director in any proceeding under this chapter brought by or against him in the Supreme Court or such other courts.
(Pub. L. 90–448, title XIV, § 1420, Aug. 1, 1968, 82 Stat. 598; Pub. L. 100–628, title X, § 1089(b), Nov. 7, 1988, 102 Stat. 3283; Pub. L. 111–203, title X, § 1098A(1), July 21, 2010, 124 Stat. 2105.)
§ 1719a. Repealed. Pub. L. 104–66, title I, § 1071(c), Dec. 21, 1995, 109 Stat. 720
§ 1720. Authorization of appropriations
There are authorized to be appropriated such sums as may be necessary to carry out this chapter.
(Pub. L. 90–448, title XIV, § 1422, formerly § 1421, Aug. 1, 1968, 82 Stat. 599; renumbered § 1422, Pub. L. 96–153, title IV, § 409, Dec. 21, 1979, 93 Stat. 1132.)