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1710.115 State property report dis

claimer.

If the developer is filing with the Office f Interstate Land Sales Registration, Department of Housing and Urban Deelopment, pursuant to § 1710.25, the tatement required by this section must e delivered to each purchaser simulaneously with the delivery of the State roperty report. With the exception of ize the statement shall be in a form hearly identical to that printed herein and entitled "Sample First Page of the Property Report on a State Filing." (See form of same title below.) The statement is as follows:

PROPERTY REPORT

NOTICE AND DISCLAIMER BY OFFICE OF INTERSTATE LAND SALES REGISTRATION U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT The Office of Interstate Land Sales Registration, U.S. Department of Housing and Urban Development has accepted this (name of State) (name of Property Report, e.g., public offering statement) as the Property Report on this subdivision.

The Interstate Land Sales Full Disclosure Act specifically prohibits any representation to the effect that the Federal Government has in any way passed upon the merits of, or given approval to this subdivision, or passed upon the value, if any, of the property.

It is unlawful for anyone to make, or cause to be made to any prospective purchaser, any representation contrary to the foregoing or any representations which differ from the statements in this Property Report. If any such representations are made, please notify the Office of Interstate Land Sales Registration at the following address:

Office of Interstate Land Sales Registration
HUD Building, 451 Seventh Street, S.W.
Washington, D.C. 20410

Inspect the property and read all documents. Seek professional advice.

Unless you received this Property Report prior to or at the time you enter into a contract, you may void the contract by notice to the seller.

If you received the Property Report less than 48 hours prior to signing a contract or agreement you have until midnight of the third business day following the consummation of the transaction to revoke your contract by notice to the seller. Name(s) of Developer: Address:

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Notwithstanding your signature by which you acknowledged that you received the Property Report you still have other important rights under the Interstate Land Sales Full Disclosure Act.

The page containing the above disclaimer shall be a separate page and it shall be prepared in the format required by § 1710.110, Part B. 2., 4., 5., and 6. Final printed versions of the State property report and the property report disclaimer shall be submitted as required by § 1710.110, Part B. 11.

Effective Date: The effective date of amendments 1 through 4 is October 29, 1974. Amendments 5 through 8 are effective October 21, 1974, sixty days after the date of enactment, as provided by the statute. All Property Reports and forms of sales contracts or agreements used in connection with effectively registered subdivisions are required to be revised to comply with the provisions of amendments 5 through 8 by October 21, 1974. The documents required to be revised must be mailed to OILSR no later than midnight, October 20, 1974. In submitting the documents, the OILSR filing number must be referenced. The filing of the revised documents will not be considered as amendments triggering the requirement for full compliance with the Regulations which became effective on December 1, 1973, unless disclosure of other material changes are concurrently submitted. However, developers and owners of subdivisions are under a continuing obligation to ensure that their filings are accurate and fully comply with the OILSR Regulations.

SAMPLE FIRST PAGE OF THE PROPERTY REPORT ON A STATE FILING

PROPERTY REPORT

NOTICE AND DISCLAIMER

BY OFFICE OF INTERSTATE LAND SALES REGISTRATION

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

The Office of Interstate Land Sales Registration, U.S. Department of Housing and Urban Development has accepted this (name of State) (name of property report, e.g., public offering statement) as the Property Report on this subdivision..

The Interstate Land Sales Full Disclosure Act specifically prohibits any representation to the effect that the Federal Government has in any way passed upon the merits of, or given approval to this subdivision, or passed upon the value, if any, of the property.

It is unlawful for argone to make, or cause to be made to any prospective purchaser, any representation contrary to the foregoing or any representations which differ from the statements in this Property Report. If any such representations are made, please notify the Office of Interstate Land Sales Registration at following address:

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SHOUL

1 documents. S

rofessional advice.

Unless you received this Property Report prior to or at the time you enter into a contract, you may void the contract by notice to the seller.

contract or agreement you have until midnight of the third business day following the consummation of the transaction to revoke our contract by notice to the seller.

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By signing this receipt you acknowledge that you have received a copy of the property report prepared pursuant to the Rules and Regulations of the Office of Interstate Land Sales Registration, U.S. Department of Housing and Urban Development.

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Notwithstanding your signature by which you acknowledged that your received the Property Report you still have other important rights under the Interstate Land Sales Full Disclosure Act.

(Section 7(d), Department of Housing and Urban Development Act, 79 Stat. 670 (42 U.S.C. 3535(d), 1419, 82 Stat. 598), (15 U.S.C. 1718, Secretary's delegation of authority published at 37 FR 5071, March 9, 1972) [39 FR 38099, Oct. 29, 1974]

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If the developer is filing pursuant to § 1710.25, there shall be filed with the Office of Interstate Land Sales Registration, Department of Housing and Urban Development, a statement as follows:

SECTION I State Filings. The following information shall preface the State statement of record or similar instrument and shall be done in accordance with the format and general instructions set forth in § 1710.105 for the heading to the format, Part I. Administrative Information, Part II. Developers and Holders of Ownership Interest in Land, and Part III, Identity of Interest in more than one filing.

SEC. II. A. Submit all of the information, documentation, and certifications or affirmations submitted to the State.

B. The contracts or agreements must contain the language required by Part VI.C.1. of § 1710.105.

C. Consolidation-Incorporation by Reference: If a filing is for an offering of lots to be sold pursuant to a common promotional plan and there has been an earlier filing with OILSR for lots offered under the same promotional plan and if the State has approved a consolidation to such filing, the consolidated material, as approved, shall be filed with the Secretary. The OILSR number shall appear at the top of each page of the material submitted. Any such filing shall be made with the Secretary within 15 days after it becomes effective under the applicable State laws and shall meet the requirements of § 1710.27 of this part.

SEC. III. Affirmation. I hereby affirm that I am the developer of the lots herein described or will be the developer at the time lots are offered for sale or lease to the public, or that I am the agent authorized by such developer to complete this statement (if agent, submit written authorization to act as agent);

That the statements contained in this Statement of Record and any supplement thereto, together with any documents submitted herewith, are full, true, complete, and correct;

That I have complied with the land development and disclosure requirements of the State of

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WARNING: Section 1418 of the Housing and Urban Development Act of 1968 (82 Stat. 598, 15 U.S.C. 1717) provides: “Any person who willfully violates any of the provisions of this title or of the rules and regulations or any person who willfully, in a Statement of Record filed under, or in a Property Report issued pursuant to, this title, makes any untrue statement of a material fact or omits to state any material fact .. * shall upon conviction be fined not more than $5,000 or imprisoned not more than 5 years, or both.”

[38 FR 23875, Sept. 4, 1973; 38 FR 32445, Nov. 26, 1973]

§ 1710.125 Partial Statement of Record-request for exemption.

Requests for an exemption order or an exemption advisory opinion pursuant to § 1710.14 or § 1710.15 shall be prepared in accordance with the following instructions:

INSTRUCTIONS FOR COMPLETION OF PARTIAL STATEMENT OF RECORD-REQUEST FOR EX

EMPTION

The partial Statement of Record shall be prepared in the manner shown below and shall contain the information requested, as follows:

Employer's IRS No...
Developer
Owner

STATEMENT OF RECORD

Name of subdivision_
Location

Name of developer..
Developer's address..
Authorized agent..

Authorized agent's address___

Part I. Administrative Information, shall be filed in the form set forth in § 1710.105 followed by the affirmation and agreement as set forth below:

The filing of this information does not preclude a developer from filing a complete Statement of Record. If the developer files the material necessary to complete the Statement of Record, the date of filing shall be the date the complete Statement of Record is received by the Secretary.

AFFIRMATION AND AGREEMENT

I hereby affirm that I am the developer of the lots herein described or will be the developer at the time the lots are offered for sale or lease to the public, or that I am the agent authorized by such developer to complete this statement (if agent, submit written authorization to act as agent);

That the statements contained in this partial Statement of Record and any supplement thereto, together with any documents submitted are full, true, complete, and correct;

That, if this request is filed pursuant to 24 CFR 1710.14(a) (2) the developer hereby affirms and represents to the Secretary that the facts, affirmations and method of operation are within the requirements of 24 CFR 1710.14(a) (2) subparagraphs (1), (11), (iii), (iv), and (v);

That the fee accompanying this application is in the amount required by the regulations of the Office of Interstate Land Sales Registration;

That I agree that this filing is a partial Statement of Record and that the receipt of this filing by the Secretary shall not be the date of filing of a Statement of Record for the purpose of determining the effective date thereof; and

That if the Secretary advises that the offering is not exempt, I agree to file the remaining portions of the Statement of Record as set forth in § 1710.105 of these rules and regulations prior to any offering and that the date of the receipt of the complete Statement of Record by the Secretary shall be the date of filing for the purpose of determining the effective date of the Statement of Record.

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1715.5 False or misleading advertising unlawful.

1715.10 Advertising disclaimer; subdivisions registered and effective with HUD. 1715.15 Advertising standards and guidelines.

Subpart B-Sales Practices 1715.25 Sales practices; when unlawful. Subpart C-Posting of Notice of Suspension 1715.50 Posting of notice of suspension.

AUTHORITY: The provisions of this Part 1715 are issued under sec. 1419 of the Interstate Land Sales Full Disclosure Act, 82 Stat. 598; 15 U.S.C. 1718.

SOURCE: 38 FR 23897, Sept. 4, 1973, unless otherwise noted.

Subpart A-Advertising

§ 1715.5 False or misleading advertising unlawful.

(a) In selling or leasing or offering to sell or lease any lot in a subdivision it shall be unlawful for any developer or agent, directly or indirectly, to prepare, authorize, use, direct, or aid in the publication, distribution, circulation, broadcast, or telecast of any advertisement concerning subdivisions when such advertisement contains any statement or pictorial representation of any kind (1) which is or would be false or misleading or (2) which by such statement or pictorial representation of any kind, or by omission thereof, in this light of applicable circumstances, is misleading or (3) which differs materially from the information contained in the statement of record or property report filed pursuant to § 1710.20 of this chapter, or in state filings made pursuant to § 1710.25 of this chapter.

(b) Whenever it shall appear to the Secretary that any developer or agent is engaged or about to engage in any action made unlawful by this section, he may use any or all of the powers conferred upon him by § 1415 of the Interstate Land Sales Full Disclosure Act.

(c) Nothing in this section shall be construed to subject to civil remedies or criminal penalities any newspaper or periodical publisher, job printer, broadcaster, or telecaster, or any of the employees thereof, for violations of this section unless the publisher, printer, broadcaster, or telecaster (1) has actual knowledge of the falsity of the advertisement or (2) has any interest in the subdivision advertised or (3) also serves directly or indirectly as the advertising agent or agency for the developer.

[38 FR 23897, Sept. 4, 1973; 38 FR 32445, Nov. 26, 1973]

§ 1715.10 Advertising disclaimer; subdivisions registered and effective with HUD.

(a) On all printed advertising material and literature used in connection with the sale or lease of lots in a subdivision for which an effective statement of record on file, the following disclaimer statement shall appear at the bottom of the front page thereof or at the bottom of all single page advertisements or newspaper advertisements in type of at least 10 point font.

Obtain the HUD Property Report from developer and read it before signing anything. HUD neither approves the merits of the offering nor the value, if any, of the property.

(b) In lieu of the statement required in paragraph (a), above, in all classified type advertisements not more than 5 inches long and not more than one column in print wide the following statement may be used and shall be set in type of at least 6 point font.

Obtain the HUD Property Report from the developer and read it before signing anything. HUD neither approves the merits of the offering nor the value, if any, of the property.

[38 FR 23897, Sept. 4, 1973; 38 FR 32445, Nov. 26, 1973]

§ 1715.15 Advertising standards and guidelines.

The following standards, while not deemed to be all inclusive, shall be used in the process of evaluating all advertising and sales presentations or representations to determine whether there is a violation of the act or of § 1715.5;

(a) All advertising must not be inconsistent with the information contained in the property report. Advertising shall not misrepresent the facts or create misleading impressions or inferences.

(b) Advertisements shall not use artists' sketches to portray proposed improvements or nonexistent scenes without an indication that such portrayal is an artist's sketch and that the improvements are proposed or that the scenes do not exist. Artists' conceptions of existing improvements or scenes must be representative and state that such rendering is an artist's conception.

(c) Use of photographs portraying scenes not actually on the advertised land is prohibited unless it is clearly indicated that such scene is not on the advertised property and the actual distance in miles from said advertised land is given.

(d) Use of statements, photographs, relating to facilities for recreation, sports, or other conveniences which are not presently in existence on the lands advertised is prohibited unless it is clearly stated that such "facilities are not on said lands" and the distance thereto in miles, or that such facility is "merely proposed."

(e) Advertising shall not refer to property as waterfront unless the property

being offered actually fronts on a canal or other body of water.

(f) Land or lots offered shall not be represented as offering quick, immediate, certain, or specific profits. Offerings. for speculative purposes shall be so represented in type of equal size to other statements.

(g) Advertising shall not contain statements concerning future price increases by the subdivider which are not specific as to amount and as to the date of the announced increase. Any such date shall be in the reasonable future and the increased price shall be maintained for a reasonable length of time.

(h) Advertising shall not contain asterisks or any other reference symbol as a means of contradicting or substantially changing any previously made statement or as a means of obscuring material facts.

(i) Advertising shall not use names or trade styles which imply that they are nonprofit research organizations, public bureaus, groups, etc., when such is not the case. Advertising of such an organization shall be prohibited when the true nature of the plan of sale or ownership is misrepresented or concealed.

(j) Advertising shall not use such terms as "minutes away," "short distance," "only miles," and "near" and terms of similar import to indicate distance unless the actual distance in road miles is used in conjunction with such terms.

(k) Use of maps to show proximity to other communities is prohibited unless such maps shall be drawn to scale and scale included, or the specific road mileage appears in easily readable print.

(1) The word "guarantee" or phrase "guaranteed refund" shall not be included in advertising unless the refund is unconditional.

(m) Advertising which indicates the size of the lot offered, shall include the amount of land available for use by the purchaser after all easements except for utilities to which his property may be subject have been deducted. If the property is subject to easements which are unusual in size, then this fact shall also be noted. All maps, plats, representations, or drawings shall show either the dimensions of the tract or the amount of acreage after deductions of easements.

(n) Maps, plats, or representations shall clearly indicate the date when the improvements will be completed. If com

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