S.3658 - Condominium Disclosure Act93rd Congress (1973-1974)
|Sponsor:||Sen. Biden, Joseph R., Jr. [D-DE] (Introduced 06/17/1974)|
|Committees:||Senate - Banking, Housing, and Urban Affairs|
|Latest Action:||Senate - 06/17/1974 Referred to Senate Committee on Banking, Housing and Urban Affairs. (All Actions)|
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Summary: S.3658 — 93rd Congress (1973-1974)All Information (Except Text)
Introduced in Senate (06/17/1974)
Condominium Disclosure Act - States that 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 interestate commerce, or of the mails: (1) to sell or lease any condominium in any project unless a statement of record and a printed public offering statement with respect to such condominium is in effect in accordance with the provisions of this Act, is furnished to the purchaser in advance of the signing of any contract or agreement for sale or lease by the purchaser; and (2) in selling or leasing, or offering to sell or lease, any condominium in a project to employ and device, scheme, or artifice to defraud, or to obtain money or property by means of a material misrepresentation with respect to any information included in the statement of record or the public offering statement or with respect to any other information pertinent to the lot or the subdivision and upon which the purchaser relies, or to engage in any transaction, practice, or course of business which operates or would operate as a fraud or deceit upon a purchaser.
Provides that any contract or agreement for the purchase or leasing of a condominium in a project covered by this Act, where the public offering statement has not been given to the purchaser in advance or at the time of his signing, shall be voidable at the option of the purchaser.
Requires a project to be registered by filing with the Secretary of Housing and Urban Development a statement of record, and specifies the information to be contained in such statement.
States that a public offering statement relating to the condominiums in a project shall contain such of the information contained in the statement of record, and any amendments thereto, as the Secretary may deen necessary, and shall disclose fully and accurately the characteristics of the project and the condominiums therein offered and shall make known to prospective purchasers all unusual and material circumstances or features affecting the condominiums.
Provides that the public offering statement shall not be used for any promotional purposes before registration of the project and afterward only if it is used in its entirety.
Provides that any person who willfully violates any provision of this Act, or any person who willfully, in a statement of record filed under, or in a public offering statement issued pursuant to this Act, makes any untrue statement of a material fact or omits to state any material fact required to be stated therein, shall upon conviction be fined not more than $5,000 or imprisoned not more than five years, or both.
States that, unless the method of disposition is adopted for the purpose of evasion of this Act, the provisions of this Act shall not apply to: (1) the sale or lease of real estate not pursuant to a common promotional plan to offer or sell condominiums in a project; (2) the sale or lease of condominiums solely for commercial or industrial purposes or uses; (3) the sale or lease of real estate under or pursuant to court order; or (4) the sale or lease of real estate by any government or government agency.
Grants jurisdiction to United States District Courts over any suit or action which may be brought to enforce any liability or duty created by this Act.
Authorizes to be appropriated such sums as may be necessary to carry out this Act.