The Interstate Land Sales Full Disclosure Act (ILSA) is a federal consumer protection statute that requires residential and mixed-use developers to register their projects with HUD prior to the sale or lease of units and requires guidance from knowledgeable and experienced attorneys. If the project is not registered, and none of the exemptions from the statute are met, the statute provides a broad range of remedies, including automatic contract rescission rights in favor of unit purchasers, and potential fines imposed by HUD. Compliance with either the registration or exemption provisions of the statute is therefore crucial, not only to avoid civil liability, but also to ensure that sales made to unit purchasers are legally enforceable.
Baker Donelson’s real estate attorneys represent residential and mixed-use developers across the southeastern United States in connection with all aspects of ILSA claims and compliance. Their experience includes guiding developers through the complex HUD registration process, structuring developments and purchase contracts for compliance with the statute’s exemptions, and defending developers against all types of claims under the statute.