Presenting a live 90 ‐ minute webinar with interactive Q&A Interstate Land Sales Full Interstate Land Sales Full Disclosure Act: Latest Developments Ensuring Compliance with ILSA's Registration Requirements in the Absence of Clear Guidelines WEDNES DAY, JANUARY 25, 2012 1pm Eastern | 12pm Central | 11am Mountain | 10am Pacific Today s faculty features: Today’s faculty features: Brian C. Cheney, Partner, Snell & Wilmer , S alt Lake City M. Theresa ("Tess") Tolentino Meehan, Partner, Stoel Rives , S acramento, Calif. Frank J. Carmel, Managing S hareholder, Carmel & Carmel , Washington, D.C. The audio portion of the conference may be accessed via the telephone or by using your computer's speakers. Please refer to the instructions emailed to registrants for additional information. If you have any questions, please contact Customer Service at 1-800-926-7926 ext. 10 .
Conference Materials If you have not printed the conference materials for this program, please complete the following steps: • Click on the + sign next to “ Conference Materials” in the middle of the left- hand column on your screen hand column on your screen. • Click on the tab labeled “ Handouts” that appears, and there you will see a PDF of the slides for today's program. • Double click on the PDF and a separate page will open. Double click on the PDF and a separate page will open. • Print the slides by clicking on the printer icon.
Continuing Education Credits FOR LIVE EVENT ONLY For CLE purposes, please let us know how many people are listening at your location by completing each of the following steps: • Close the notification box • In the chat box, type (1) your company name and (2) the number of attendees at your location • Click the S END button beside the box
Tips for Optimal Quality S S ound Quality d Q lit If you are listening via your computer speakers, please note that the quality of your sound will vary depending on the speed and quality of your internet connection. If the sound quality is not satisfactory and you are listening via your computer speakers, you may listen via the phone: dial 1-866-871-8924 and enter your PIN - when prompted Otherwise please send us a chat or e mail when prompted. Otherwise, please send us a chat or e-mail sound@ straffordpub.com immediately so we can address the problem. If you dialed in and have any difficulties during the call, press *0 for assistance. Viewing Qualit y To maximize your screen, press the F11 key on your keyboard. To exit full screen, press the F11 key again press the F11 key again.
Interstate Land Sales Full Disclosure Act: Latest Developments p Ensuring Compliance with ILSA's Registration Requirements in the Absence of Clear Guidelines Requirements in the Absence of Clear Guidelines January 25, 2012 Brian C. Cheney , Partner Snell & Wilmer, Salt Lake City, UT M Theresa ("Tess") Tolentino Meehan Partner M. Theresa ( Tess ) Tolentino Meehan , Partner Stoel Rives, Sacramento, CA Frank J. Carmel , Managing Shareholder Carmel & Carmel Washington D C Carmel & Carmel, Washington, D.C. 5
Overview of Discussion History of the Act Recent Developments p Best Practices Best Practices Outlook Outlook Q Questions ti 6
History of the Act (15 U S C 1701 (15 U.S.C. 1701 et seq. ) t ) • Passed in 1968 resulting from sales to out ‐ of Passed in 1968 resulting from sales to out of state ‐ buyers of uninhabitable lands (FL/AZ) – Emphasis on full disclosure – Emphasis on full disclosure – Liberalized fraud remedies 7
8 ) (15 U.S.C. 1701 et seq. ) History of the Act t (15 U S C 1701
History of the Act (15 U S C 1701 (15 U.S.C. 1701 et seq. ) t ) • Passed in 1968 resulting from sales to out ‐ of Passed in 1968 resulting from sales to out of state ‐ buyers of uninhabitable lands (FL/AZ) – Emphasis on full disclosure – Emphasis on full disclosure – Liberalized fraud remedies • Modeled after the Securities Act of 1933 M d l d ft th S iti A t f 1933 – Statement of record = registration statement – Property Report = prospectus • 1979 Exemption Amendments – exempt small business and occasional land sellers 9
Values Ri Rise Market CRASH Stabilizes Stabilizes /Develop ILSA ILSA ACTIVITY Limitations Period Litigation Expires/Fewer Lawsuits Modification No to to Develop Regulations 10
History of the Act (15 U.S.C. 1701 et seq. ) • Early litigation (pre ‐ 1979 Amendments) y g (p ) – Viewed as Buyer’s Remorse Litigation – Materiality of disputed disclosures y p – Defining type of development covered • E.g. condos are “Lots” g • Recent Litigation – Recognition of contracting to avoid the Act Recognition of contracting to avoid the Act – Strict Application of the Act – Almost ½ of reported cases have been issued in Almost ½ of reported cases have been issued in last 5 years 11
Recent ILSA Developments Shift from HUD to the CFPB Shift from HUD to the CFPB The Act; Applicability and T Terminology i l Current Litigation Trends • Major Themes • Newer unusual cases N l • California and State Law Interplay 12
Transfer from HUD to the CFPB Transfer from HUD to the CFPB • Frank Carmel Frank Carmel • Mandated by Dodd ‐ Frank – Created for purposes of Wall Street Reform and Consumer Created for purposes of Wall Street Reform and Consumer Protection; – Dodd ‐ Frank became law on July 21, 2010; – Established the Bureau of Consumer Financial Protection (Referred to as CFPB); – Title X Transferred Responsibility for a number of Title X Transferred Responsibility for a number of consumer ‐ oriented financial laws including ILSA to the CFPB (formerly administered by HUD). 13
The Consumer Financial Protection Bureau The Consumer Financial Protection Bureau • Assumed Responsibility for ILSA on July 21, 2011 Assumed Responsibility for ILSA on July 21, 2011 • Initial result was somewhat chaotic Initial result was somewhat chaotic – Loss of institutional history associated with ILSA – Even smaller staff – New interpretation of provisions; Review tightened – Inconsistency complaints by many lawyers – Requesting of Information not in Regulations – Often pages of punch ‐ list items by reviewers 14
CFPB Activities CFPB Activities • Common conversation in area is that ILSA statute can be improved upon improved upon. • December 5, 2011 Notice on Streamlining Inherited Regulations - including ILSA. – Primary directive is mortgage reform but Primary directive is mortgage reform, but – Congressional mandate to address outdated, unnecessary or unduly burdensome regulations. – Comments solicited and due by March 5, 2012. • December 21, 2011 Revised Regulations – Primary changes were changes in name of agency and use of forms. – Comments due by February 21, 2012. C t d b F b 21 2012 • Recent Consideration of Condominium Exemption 15
Transfer to CFPB and Certified State Programs • California Department of Real Estate (DRE) California Department of Real Estate (DRE) – CFPB will continue to administer to the same policies policies – No other communication between the DRE and CFPB d CFPB – CFPB continues to accept CA’s public reports 16
Transfer to CFPB and Certified State Programs • California Department of Real Estate (DRE) California Department of Real Estate (DRE) – CFPB will continue to administer to the same policies policies – No other communication between the DRE and CFPB d CFPB – CFPB continues to accept CA’s public reports – DRE plans to “wait and see” 17
ILSA – What it Covers ILSA What it Covers It shall be unlawful for any developer or agent , directly or indirectly, to make use of any means or instruments of transportation or communication in interstate commerce or of the mails commerce , or of the mails– (1) with respect to the sale or lease of any lot not exempt under section 1702 of this title ‐ ‐ (Paraphrased) p (A) to sell or lease a lot unless a statement of record with respect to such lot is in effect; (B) to sell or lease a lot unless a printed property report has been furnished to the purchaser or lessee; (C) to sell or lease a lot where any part of the statement of record or the property report (C) t ll l l t h t f th t t t f d th t t contained an untrue statement of a material fact or omitted to state a material fact or (D) to display or deliver to prospective purchasers or lessees advertising and promotional material which is inconsistent with information required to be disclosed in the property report . . . 18
Recommend
More recommend
