Bill Exempts Condos from ILSA
On Thursday, September 26, the House of Representatives passed H.R. 2600, the “Interstate Land Sales Disclosure Act of 2013,” sponsored by Rep. Carolyn Maloney (D-NY), by a vote of 410-0. This act amends the Interstate Land Sales Act (ILSA), by carving out an exemption for condominium developers from ILSA’s reporting requirements. ILSA protects consumers from purchasing property that is not as advertised (such as being unfit for development), by requiring extensive disclosures by developers. If its disclosure requirements are not fully met, the purchaser may revoke the contract. During the 2008 economic downturn however, many buyers used ILSA’s rigorous reporting requirements to rescind valid real estate contracts, as the market softened and equivalent units sold for less money than they had agreed to pay. Rep. Maloney’s bill exempts condo developers from these disclosure requirements, and therefore prevent buyers from rescinding otherwise valid real estate contracts due to personal financial reasons.
Read more about the Interstate Land Disclosure Act of 2013.