[Code of Federal Regulations] [Title 24, Volume 5] [Revised as of January 1, 2007] From the U.S. Government Printing Office via GPO Access [CITE: 24CFR1710.16] [Page 18-19] TITLE 24--HOUSING AND URBAN DEVELOPMENT CHAPTER X--OFFICE OF ASSISTANT SECRETARY FOR HOUSING--FEDERAL HOUSING COMMISSIONER, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (INTERSTATE LAND SALES REGISTRATION PROGRAM) PART 1710_LAND REGISTRATION--Table of Contents Subpart A_General Requirements Sec. 1710.16 Regulatory exemption--determination required. (a) General. The Secretary may exempt from the registration requirements of the Act any subdivision or lots in a subdivision by issuing an order in writing if it is determined that registration is not necessary in the public interest and for the protection of purchasers on the basis of the small amount or limited character of the offering and the requirements contained in paragraph (b) of this section. (b) Eligibility requirements. An exemption order may be issued at the discretion of the Secretary on the basis of the small amount or limited character of the offering if the following requirements are met: (1) The subdivision or sales substantially meet the requirements of one of the exemptions available under this chapter. (2) Each contract-- (i) Specifies the developer's and purchaser's responsibilities for providing and maintaining roads, water and sewer facilities and any existing or promised amenities; (ii) Contains a good faith estimate of the year in which the roads, water and sewer facilities and promised amenities will be completed; (iii) Contains a non-waivable provision giving the purchaser the opportunity to revoke the contract until at least midnight of the seventh calendar day following the date the purchaser signed the contract. If the purchaser is entitled to a longer revocation period by operation of State law, that period becomes the Federal revocation period and the contract must reflect the requirements of the longer period. (iv) Contains a provision that obligates the developer to deliver to the purchaser within 180 days of the date the purchaser signed the sales contract, a warranty deed, or its equivalent under local law, which at the time of delivery is free from any monetary liens or encumbrances. (3) The purchaser or purchaser's spouse makes a personal on-the-lot inspection of the lot to be purchased before signing a contract. (4) The developer files a request for an exemption order and supporting documentation in accordance with paragraphs (c) and (d) of this section and submits a filing fee of $500.00 in accordance with Sec. 1710.35(a) of this part. This fee is not refundable. (c) Request. The request for an Exemption Order must be in the following format: Request for Exemption Order Subdivision_____________________________________________________________ Location (including county)_____________________________________________ Developer_______________________________________________________________ [[Page 19]] Address_________________________________________________________________ Authorized Agent or President of Developer______________________________ ________________________________________________________________________ Address_________________________________________________________________ Number of Lots Subject to Exemption Request_____________________________ Description of Lots (list lot and block number or other identifying designation)____________________________________________________________ ________________________________________________________________________ I affirm that I am the developer or owner of the property described above or will be the developer or owner at the time the lots are offered for sale to the public, or that I am the agent authorized by the developer or owner to complete this statement. I further affirm that the statements contained in all documents submitted with the request for an exemption order are true and complete. ________________________________________________________________________ (Date) ________________________________________________________________________ (Signature of Developer, Owner or Authorized Agent) ________________________________________________________________________ (Title) Warning: Section 1418 of the Housing and Urban Development Act of 1968 (83 Stat. 598, 15 U.S.C. 1717 as amended) provides: ``any person who willfully violates any of the provisions of this title or the rules and regulations prescribed pursuant thereto * * *, shall upon conviction be fined not more than $10,000.00 or imprisoned not more than five years, or both.'' (d) Supporting documentation. A request for an exemption order must be accompanied by the following documentation: (1) A plat of the entire subdivision with the lots subject to the exemption request delineated thereon. (2) A copy of the contract to be used. (3) A clear and specific statement detailing how the proposed sales of lots subject to the exemption request substantially complies with one of the available exemption provisions. (4) A description of the method by which the lots have been and will be promoted and to which population centers the promotion has been and will be directed. (e) The sale must also comply with the anti-fraud provisions of Sec. 1710.4 (b) and (c) of this part. (f) Termination. If, subsequent to the issuance of an exemption order, the Secretary has reasonable grounds to believe that exemption from the registration requirements in the particular case is not in the public interest, the Secretary may, after issuing a notice and giving the respondent an opportunity to request a hearing within fifteen days of receipt of the notice, terminate the exemption order. The basis for issuing a notice may be apparent omissions or misrepresentations in the documents submitted to the Secretary, the conduct of the developer or agent, such as unlawful conduct or insolvency, or adverse information about the real estate that should be disclosed to purchasers. Proceedings will be governed by Sec. 1720.238. [45 FR 40479, June 13, 1980, as amended at 49 FR 31370, 31373, Aug. 6, 1984]