Sale or Lease of Condominium Units Now Exempt from Registration and Disclosure Requirements of the Interstate Land Sales Full Disclosure Act
October 6, 2014
On September 26, 2014, President Obama signed into law a bill that exempts the sale or lease of condominium units already subject to other statutory registration and disclosure requirements from the registration and disclosure requirements of the Federal Interstate Land Sales Full Disclosure Act (“ILSA” or the “Act”). Additionally, the bill defines a “condominium unit” as “a unit of residential or commercial property to be designated for separate ownership pursuant to a condominium plan or declaration provided that upon conveyance (1) the owner of such unit will have sole ownership of the unit and an undivided interest in the common elements appurtenant to the unit; and (2) the unit will be an improved lot.”
Notably, the Act’s misrepresentation and fraud provisions will continue to apply to projects that qualify for the new exemption. The bill will become effective 180 days from the President’s signature.
Because New York and New Jersey both have registration and disclosure requirements for residential condominiums, following the effective date of the bill the registration and disclosure requirements of ILSA will no longer apply to the sale of residential condominiums in those states.
For more information, please contact your Wolff & Samson PC attorney or the authors listed below.
Melissa A. Brown | Associate, Real Estate, Development & Land Use Group | email@example.com | (973) 530-2159