H.R. 2600: Good News For Condo Developers

H.R. 2600, which made several important changes to the Interstate Land Sales and Full Disclosure Act (ILSA), will go into effect on March 25, 2015, 180 days after its signing by President Obama. H.R. 2600 exempts the sale of condominium units from the registration and disclosure provisions of the ILSA. After the economic downturn, many purchasers sought to cancel land sale contracts by any means necessary.  ILSA became a particularly popular and successful rescission of contract tool, often on very technical grounds completely outside of the framework of the deal struck by the parties to the contract. H.R. 2600 should bring more stability and predictability to condominium unit sales by reducing the likelihood of unexpected (and unwarranted) contract rescission by purchasers.  It will also help developers of larger scale projects bring their product to market faster by disposing of the registration requirements of ILSA, which could often add months to the binding-sales-contracts timeline. More information