Page:United States Statutes at Large Volume 93.djvu/1160

 93 STAT. 1128

PUBLIC LAW 96-153—DEC. 21, 1979 "REQUIREMENTS RELATING TO THE SALE OR LEASE OF LOTS

Ante, p. 1123. 15 USC 1706. 15 USC 1707.

"SEC. 1404. (a) 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 1403— "(A) to sell or lease any lot unless a statement of record with respect to such lot is in effect in accordance with section 1407; "(B) to sell or lease any lot unless a printed property report, meeting the requirements of section 1408, 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 1405 through 1408 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 1403(a)— "(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) Any contract or agreement for the sale or lease of a lot not exempt under section 1403 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) 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 title 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) Any contract or agreement which is for the sale or lease of a lot not exempt under section 1403 and which does not provide—

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