[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: 24CFR1710.4]

[Page 8-9]
 
                 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.  1710.4  Exemptions--general.

    (a) The exemptions available under Sec. Sec.  1710.5 through 1710.16 
are not applicable when the method of sale, lease or other disposition 
of land or an interest in land is adopted for the purpose of evasion of 
the Act.
    (b) With the exception of the sales or leases which are exempt under 
Sec.  1710.5, the anti-fraud provisions of the Act (15 U.S.C. 
1703(a)(2)) apply to exempt transactions. The anti-fraud provisions make 
it unlawful for a developer or agent to employ any device, scheme, or 
artifice to:
    (1) Defraud;
    (2) To obtain money or property by means of any untrue statement of 
a material fact, or

[[Page 9]]

    (3) To omit to state a material fact necessary in order to make the 
statements made not misleading, with respect to any information 
pertinent to the lot or subdivision; or
    (4) To engage in any transaction, practice, or course of business 
which operates or would operate as a fraud or deceit upon a purchaser.
    (c) The anti-fraud provisions of the Act require that certain 
representations be included in the contract in transactions which are 
not exempt under Sec.  1710.5. Specifically, the Act requires that if a 
developer or agent represents that roads, sewers, water, gas or electric 
service or recreational amenities will be provided or completed by the 
developer, the contract must stipulate that the services or amenities 
will be provided or completed. See Sec.  1715.15(f).
    (d) Eligibility for exemptions available under Sec. Sec.  1710.5 
through 1710.14 is self-determining. With the exception of the 
exemptions available under Sec. Sec.  1710.15 and 1710.16, a developer 
is not required to file notice with or obtain the approval of the 
Secretary in order to take advantage of an exemption. If a developer 
elects to take advantage of an exemption, the developer is responsible 
for maintaining records to demonstrate that the requirements of the 
exemption have been met.
    (e) A developer may present evidence, or otherwise discuss, in an 
informal hearing before the OILSR Administrator or designee, the 
Department's position on the jurisdiction or non-exempt status of a 
particular subdivision.

[45 FR 40479, June 13, 1980, as amended at 54 FR 40866, Oct. 4, 1989]