questions and answers are meant to apply to general situations and
should not be construed as definitive answers to any questions you
may have. For further information, contact the program office at
the address listed on the Interstate
Land Sales Home Page.
1 - If I have a complaint concerning my lot purchase, what should
- Try to resolve your situation first by contacting the developer.
If that fails, you can file a complaint with the Office of RESPA
and Interstate Land Sales, U.S. Department of Housing and Urban
Development, 451 7th Street SW, Room 9154, Washington, DC 20410,
that clearly states your problem. Your complaint also needs to include
the name and address of the developer, the name of the salesperson,
the date of your purchase, the name of the subdivision, and the
lot number. You should also indicate whether or not you received
a Property Report at the time of sale and submit copies of any sales
documents or other pertinent information. HUD will then advise you
whether we can provide assistance to you since some matters may
not fall under our jurisdiction.
2 - Under what circumstances can I get my money back?
- If you purchased a registered lot and received a Property Report
prior to signing your contract or purchased a lot sold under either
the intrastate, multiple site or substantial compliance exemption,
you can cancel your contract and receive a refund within seven days
of the date of your purchase. If you are entitled to and did not
receive a Property Report prior to the time of sale, you are entitled
to cancel your contract and receive a refund within two years from
the date of your purchase. This two year cancellation period also
applies to some purchasers of registered lots who received a Property
Report prior to the time of purchase. If you believe that you are
entitled to cancel your contract and receive a refund, you should
inform the developer, not HUD, in writing of your decision. If the
developer refuses, you should file a complaint with HUD.
3 - If I am thinking about buying a lot, what information can you
provide to me concerning the subdivision and the developer?
- HUD can tell you whether or not the developer is registered, whether
we have any complaints and whether any previous actions have been
taken against a particular developer. However, HUD does not express
opinions on whether or not you should buy the lot, the character
of the developer or provide legal advice. Additional information
on buying lots can be found in our consumer brochure, "Buying
Lots from Developers."
4 - If a developer has not completed promised facilities and amenities
as indicated in the Property Report, what can HUD do?
- The Interstate Land
Sales Full Disclosure Act does not give HUD the authority to
force any developer to complete promised facilities and amenities.
If a developer fails to complete facilities as promised in the Property
Report or in any way misstates or omits necessary disclosure, the
individual purchasers can sue under the Act for damages, subject
to the Act's statute of limitations. If the developer needs to amend
its Property Report, we will ask developer to amend it to protect
future purchasers. The failure of the developer to do so can result
in the suspension of its registration. HUD can also pursue civil
and/or criminal action in those situations where fraudulent sales
practices may have occurred.
5 - Can HUD take action against a developer who is not enforcing
the restrictive covenants?
- HUD has no authority to force a developer to enforce restrictive
covenants. An attorney can advise you of your rights in this matter.
6 - How can lot purchasers gain control of the property owners'
association which is now being controlled by the developer?
- While the developer is required to disclose whether or not it
exercises any control over an association, we have no authority
to regulate the actions of a property owners' association or enforce
its by-laws. Normally, the covenants or by- laws will govern the
actions of the association. An attorney can advise you of your rights
in this matter.
7 - How do I obtain copies of the Property Report and any other
materials you have regarding a particular offering?
- Hard copies of the Property Report are available at $2.50 each
and single pages of other materials are available at $.10 per page.
True copies can be obtained for an additional $2 per document and
certifications are available at $12.00 each. Certified checks, personal
checks and money orders, made payable to the Department of the Treasury,
are accepted for payment.
8 - Should I continue making my payments if I am dissatisfied with
- Since we cannot provide legal advice, we suggest that you seek
the advice of an attorney who can advise you of your rights in this
9 - If the developer has filed for bankruptcy, how will that affect
- Although the circumstances of each case will vary, the odds are
very good that the bankruptcy will affect your rights. If you have
not received information from the developer, you should contact
the bankruptcy court to find out the procedure for filing a claim.
You should then consult an attorney who can determine your rights
in this matter.
10 - If I purchased my lot from an individual rather than from the
developer, am I entitled to any rights provided to purchasers under
the Interstate Land
Sales Full Disclosure Act?
- No. Sales made among individuals are not covered by the Act. Therefore,
purchasers buying lots from individuals are not entitled to receive
a Property Report nor are they entitled to any rights provided to
purchasers under the Act.
Land Sales Home Page