15 U.S.C. § 1708 — Certification of substantially equivalent

Page 1675 TITLE 15—COMMERCE AND TRADE § 1708 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees. EFFECTIVE DATE Section effective upon the expiration of two hundred and seventy days after Aug. 1, 1968, see section 1423 of Pub. L. 90–448, set out as a note under section 1701 of this title. § 1707. Property report (a) Contents of report A property report relating to the lots in a sub- division shall contain such of the information contained in the statement of record, and any amendments thereto, as the Director may deem necessary, but need not include the documents referred to in paragraphs (7) to (11), inclusive, of section 1705 of this title. A property report shall also contain such other information as the Di- rector may by rules or regulations require as being necessary or appropriate in the public in- terest or for the protection of purchasers. (b) Promotional use The property report shall not be used for any promotional purposes before the statement of record becomes effective and then only if it is used in its entirety. No person may advertise or represent that the Director approves or rec- ommends the subdivision or the sale or lease of lots therein. No portion of the property report shall be underscored, italicized, or printed in larger or bolder type than the balance of the statement unless the Director requires or per- mits it. (Pub. L. 90–448, title XIV, § 1408, Aug. 1, 1968, 82 Stat. 594; Pub. L. 111–203, title X, § 1098A(1), July 21, 2010, 124 Stat. 2105.) Editorial Notes AMENDMENTS 2010—Pub. L. 111–203 substituted ‘‘Director’’ for ‘‘Sec- retary’’ wherever appearing. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective on the des- ignated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees. EFFECTIVE DATE Section effective upon the expiration of two hundred and seventy days after Aug. 1, 1968, see section 1423 of Pub. L. 90–448, set out as a note under section 1701 of this title. § 1708. Certification of substantially equivalent State law (a) Criteria; request by State (1) A State shall be certified if the Director de- termines— (A) that, when taken as a whole, the laws and regulations of the State applicable to the sale or lease of lots not exempt under section 1702 of this title require the seller or lessor of such lots to disclose information which is at least substantially equivalent to the informa- tion required to be disclosed by section 1707 of this title; and (B) that the State’s administration of such laws and regulations provides, to the max- imum extent practicable, that such informa- tion is accurate. (2) In the case of any State which is not cer- tified under paragraph (1), such State shall be certified if the Director determines— (A) that, when taken as a whole, the laws and regulations of the State applicable to the sale or lease of lots not exempt under section 1702 of this title provide sufficient protection for purchasers and lessees with respect to the matters for which information is required to be disclosed by section 1707 of this title but which is not required to be disclosed by such State’s laws and regulations; and (B) that the State’s administration of such laws and regulations provides, to the max- imum extent practicable, that (i) information required to be disclosed by such laws and regu- lations is accurate, and (ii) sufficient protec- tion for purchasers and lessees is made avail- able with respect to the matters for which in- formation is not required to be disclosed. (3) Any State requesting certification must agree to accept a property report covering land located in another certified State but offered for sale or lease in the State requesting certifi- cation if the property report has been approved by the other certified State. Such property re- port shall be the only property report required by the State with respect to the sale or lease of such land. (b) Filing of State disclosure materials and re- lated documentation for purposes of Federal statement of record and property report re- quirements; acceptance by Director After the Director has certified a State under subsection (a), the Director shall accept for fil- ing under sections 1704 through 1707 of this title (and declare effective as the Federal statement of record and property report which shall be used in all States in which the lots are offered for sale or lease) disclosure materials found ac- ceptable, and any related documentation re- quired, by State authorities in connection with the sale or lease of lots located within the State. The Director may accept for such filing, and de- clare effective as the Federal statement of record and property report, such materials and documentation found acceptable by the State in connection with the sale or lease of lots located outside that State. Nothing in this subsection shall preclude the Director from exercising the authority conferred by subsections (d) and (e) of section 1706 of this title. (c) Notice to State upon failure to meet require- ments and remedial action necessary for cer- tification If a State fails to meet the standards for cer- tification pursuant to subsection (a), the Direc- tor shall notify the State in writing of the changes in State law, regulation, or administra- tion that are needed in order to obtain certifi- cation. (d) Periodic review of certified States’ laws, reg- ulations, and administration; withdrawal of certification The Director shall periodically review the laws and regulations, and the administration Page 1676 TITLE 15—COMMERCE AND TRADE § 1709 thereof, of States certified under subsection (a), and may withdraw such certification upon a de- termination that such laws, regulations, and the administration thereof, taken as a whole, no longer meet the requirements of subsection (a). (e) State and local governmental authorities af- fected; cooperation with State authorities Nothing in this chapter may be construed to prevent or limit the authority of any State or local government to enact and enforce with re- gard to the sale of land any law, ordinance, or code not in conflict with this chapter. In admin- istering this chapter, the Director shall cooper- ate with State authorities charged with the re- sponsibility of regulating the sale or lease of lots which are subject to this chapter. (Pub. L. 90–448, title XIV, § 1409, Aug. 1, 1968, 82 Stat. 594; Pub. L. 96–153, title IV, § 404, Dec. 21, 1979, 93 Stat. 1129; Pub. L. 111–203, title X, § 1098A(1), July 21, 2010, 124 Stat. 2105.) Editorial Notes AMENDMENTS 2010—Pub. L. 111–203 substituted ‘‘Director’’ for ‘‘Sec- retary’’ wherever appearing. 1979—Subsec. (a). Pub. L. 96–153 substituted provi- sions setting forth criteria for determinations respect- ing certifications of substantially equivalent State law for purposes of disclosure requirements of this chapter, for provisions relating to cooperation with State au- thorities in administering this chapter. Subsec. (b). Pub. L. 96–153 substituted provisions re- lating to filing requirements for State disclosure mate- rials and related documentation for purposes of Federal statement of record and property report requirements, for provisions relating to the jurisdiction of the par- ticular State real estate commission or similar body. Subsecs. (c) to (e). Pub. L. 96–153 added subsecs. (c) to (e). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective on the des- ignated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees. EFFECTIVE DATE OF 1979 AMENDMENT Amendment by Pub. L. 96–153 effective on effective date of regulations implementing such amendment, but in no case later than six months following Dec. 21, 1979, see section 410 of Pub. L. 96–153, set out as a note under section 1701 of this title. EFFECTIVE DATE Section effective upon the expiration of two hundred and seventy days after Aug. 1, 1968, see section 1423 of Pub. L. 90–448, set out as a note under section 1701 of this title. § 1709. Civil liabilities (a) Violations; relief recoverable A purchaser or lessee may bring an action at law or in equity against a developer or agent if the sale or lease was made in violation of sec- tion 1703(a) of this title. In a suit authorized by this subsection, the court may order damages, specific performance, or such other relief as the court deems fair, just, and equitable. In deter- mining such relief the court may take into ac- count, but not be limited to, the following fac- tors: the contract price of the lot or leasehold; the amount the purchaser or lessee actually paid; the cost of any improvements to the lot; the fair market value of the lot or leasehold at the time relief is determined; and the fair mar- ket value of the lot or leasehold at the time such lot was purchased or leased. (b) Enforcement of rights by purchaser or lessee A purchaser or lessee may bring an action at law or in equity against the seller or lessor (or successor thereof) to enforce any right under subsection (b), (c), (d), or (e) of section 1703 of this title. (c) Amounts recoverable The amount recoverable in a suit authorized by this section may include, in addition to mat- ters specified in subsections (a) and (b), interest, court costs, and reasonable amounts for attor- neys’ fees, independent appraisers’ fees, and travel to and from the lot. (d) Contributions Every person who becomes liable to make any payment under this section may recover con- tribution as in cases of contract from any person who, if sued separately, would have been liable to make the same payment. (Pub. L. 90–448, title XIV, § 1410, Aug. 1, 1968, 82 Stat. 595; Pub. L. 96–153, title IV, § 405, Dec. 21, 1979, 93 Stat. 1130.) Editorial Notes AMENDMENTS 1979—Subsec. (a). Pub. L. 96–153 substituted provi- sions relating to violations of section 1703(a) of this title and scope of relief authorized in suits brought against such violations, for provisions relating to suits for untrue statements or omissions to state material fact in statement of record. Subsec. (b). Pub. L. 96–153 substituted provisions re- lating to enforcement of rights by the purchaser or les- see against the seller or lessor, for provisions relating to suits by the purchaser against the developer or agent. Subsec. (c). Pub. L. 96–153 substituted provisions au- thorizing interest, court costs, etc., to be recoverable in suits under this section, for provisions relating to enumeration of damages recoverable in suits under this section. Subsec. (d). Pub. L. 96–153 reenacted provisions with- out change. Subsec. (e). Pub. L. 96–153 struck out subsec. (e) which set forth limitation on amount recoverable under this section. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1979 AMENDMENT Amendment by Pub. L. 96–153 effective on effective date of regulations implementing such amendment, but in no case later than six months following Dec. 21, 1979, see section 410 of Pub. L. 96–153, set out as a note under section 1701 of this title. EFFECTIVE DATE Section effective upon the expiration of two hundred and seventy days after Aug. 1, 1968, see section 1423 of Pub. L. 90–448, set out as a note under section 1701 of this title.