Interstate Land Sales Full Disclosure Act: CFPB Enforcement Activity, Condo Exemption, Litigation Updates

Ensuring ILSA Compliance, Avoiding Contract Rescission, Fines and Penalties

Recording of a 90-minute CLE webinar with Q&A


Conducted on Wednesday, March 29, 2017

Recorded event now available

or call 1-800-926-7926
Program Materials

This CLE webinar will provide real estate counsel with a review of the latest developments in the enforcement of the Interstate Land Sales Full Disclosure Act (ILSA). The panel will discuss how the Consumer Financial Protection Bureau (CFPB) and courts are addressing ILSA, the ILSA amendment providing a partial exemption for the sale of condo units, and best practices to ensure compliance.

Description

The end of the Great Recession did not bring an end to ILSA enforcement issues. In May 2015, the CFPB entered into a consent order regarding a development in Hawk’s Bluff, Tenn., ordering the “developer” to repair roads in the subdivision, a marked expansion of the application of ILSA to developments. This followed the 2013 CFPB enforcement action against 3D Resorts-Bluegrass L.L.C., alleging material misrepresentations in marketing materials and failure to comply with ILSA registration.

ILSA compliance challenges for developers and their counsel remain. Current challenges include the applicability of ILSA to certain developments and exemption from ILSA registration requirements for a number of different development scenarios.

An amendment to ILSA to partially exempt condominium developments took effect Mar. 25, 2015. In the two years since, some applications of the exemption are clear, but several key issues remain unresolved or fraught with ambiguity. Moreover, the amendment did not grandfather in condo developments that were in sales process prior to the effective date.

Court interpretations of the Act are inconsistent, and developers must constantly navigate potential legal land mines within ILSA. Counsel to developers must ensure properties are properly registered under ILSA or are exempt from the Act.

Listen as our authoritative panel of attorneys provides their unique perspectives, overview and analysis of current ILSA regulations, guidelines and procedures, including the new partial exemption for condo developments, ILSA litigation developments, and CFPB ILSA-related enforcement activity.

READ MORE

Outline

  1. ILSA enforcement activity by the CFPB
    1. 2015 consent order with Hawk’s Bluff, Tenn.
    2. 2013 consent order with 3D Resorts-Bluegrass L.L.C.
  2. Registration statement
    1. Legal issues with registration statements
    2. Exemptions and drafting pointers
  3. 2015 ILSA amendment partially exempting condo developments
  4. Recent private litigation developments

Benefits

The panel will review these and other key issues:

  • What has the CFPB’s involvement in ILSA cases been so far, and how does the CFPB identify targets for investigation?
  • What issues have not been resolved or remain ambiguous in the recent condo exemption amendment?
  • How are courts addressing ILSA cases?
  • What are the compliance options, alternatives, strategies and pitfalls for developers under ILSA?

Faculty

Mark D. Hillier
Mark D. Hillier

Shareholder
Greenberg Traurig

Mr. Hillier is experienced in the areas of recreation and hospitality law, corporate, real estate, timeshare,...  |  Read More

Joseph E. Lubinski
Joseph E. Lubinski

Partner
Husch Blackwell

Mr. Lubinski's multifaceted practice includes experience with virtually all aspects of real estate transactions,...  |  Read More

Other Formats
— Anytime, Anywhere

Strafford will process CLE credit for one person on each recording. All formats include program handouts. To find out which recorded format will provide the best CLE option, select your state:

CLE On-Demand Video

$297

Download

$297