Attorney Fee Recovery in Interstate Land Sale Cases

Chapter 42 of the Federal Code, dealing with interstate land sales, provides for the recovery of attorney fees for certain violations. Specifically, 15 U.S.C. 1709 provides that attorney fees may be included in the amount recoverable in actions brought for violations of section 1703. That section, in turn, provides rules that apply to non-exempt interstate land sales and leases, including:

(1) a statement of record comporting with 15 U.S.C. 1706 must be in effect before the land is sold or leased;

(2) a printed property report comporting with 15 U.S.C. 1707 must be provided to the purchaser or lessee before the land is sold or leased;

(3) none of the advertising or promotional materials and be inconsistent with the printed property report;

(4) there can be no “device, scheme, or artifice to defraud”;

(5) there can be no misleading statement of omission leading to the receipt of money

(6) there can be no representation “that roads, sewers, water, gas, or electric service, or amenities will be provided,” unless such is provided for in the contract for sale or lease;

(7) the purchaser or lessee must be given at least seven days to revoke the contract, and the contract must state this;

(8) if the purchaser or lessee did not receive a timely property report, the purchaser or lessee has 2 years to revoke the contract, and the contract must state this

(9) if certain other provisions that protect the purchaser or lessee are not in the contract, the purchaser or lessee has 2 years to revoke the contract.

It should be noted that the list of exemptions contained in section 1702 of this Chapter greatly limits the transactions to which the above rules are applicable.

The information contained in this blog is not legal advice and should not be relied on as such. For legal advice or for answers to specific questions, please contact the blog's author.