If I am a land developer who sells lots to consumers, how can I determine if my subdivision is subject to the provisions of the Interstate Land Sales Full Disclosure Act?

The Interstate Land Sales (ILS) program protects consumers from fraud and abuse in the sale or lease of land. In 1968 Congress enacted the Interstate Land Sales Full Disclosure Act, which is patterned after the Securities Law of 1933 and requires land developers to register subdivisions of 100 or more non-exempt lots and to provide each purchaser with a disclosure document called a Property Report. The Property Report contains relevant information about the subdivision and must be delivered to each purchaser before the signing of the contract or agreement.

The ILS is administered and enforced by the Consumer Financial Protection Bureau (CFPB).

For more information go to the Consumer Financial Protection Bureau website at https://www.consumerfinance.gov/

You may contact the CFPB regarding ILS by email at CFPB_ILS_Inquiries@cfpb.gov

ILS guidance documents are located at https://www.consumerfinance.gov/policy-compliance/guidance/implementation-guidance/bulletin-interstate-land-sales-full-disclosure-amendment/

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-02787