Interstate Land Sales Full Disclosure Act (ILSA)

Question 1

What is the Interstate Land Sales Full Disclosure Act (ILSA)?

Answer 1

Intended to prevent fraudulent marketing schemes when land is sold without being seen by purchasers

Question 2

Who administers ILSA?

Answer 2

Administered by the director of the Consumer Financial Protection Bureau

The Consumer Financial Protection Bureau is a government agency responsible for overseeing consumer protection in the financial sector.

Question 3

Who is exempt from ILSA?

Answer 3

Developers who market subdivisions of fewer than 25 lots

This exemption allows smaller developers to avoid the regulatory burdens imposed by ILSA.

Question 4

According to ILSA, developers of 25 lots or more need to provide each purchaser with what?

Answer 4

A property report

The property report contains important information about the property and the development.

Question 5

For a purchaser who receives the property report prior to signing the contract, how many days do they have to cancel the contract?

Answer 5

7 days

This provision allows buyers time to reconsider their purchase after reviewing the property report.

Question 6

The contract must state the purchaser’s right to _____ contract.

Answer 6

Cancel

Question 7

What must developers of subdivisions of 100 or more lots do?

Answer 7

Register subdivisions by filing a statement of record with the Consumer Financial Protection Bureau