5. Covenants, conditions, and restrictions (CC&Rs) are private rules set up by the developer that set standards for all the parcels within a defined subdivision. IN ILLINOIS…Any restrictive covenant that forbids or restricts conveyance, encumbrance, occupancy, or lease on the basis of race, color, religion, or national origin is void. Exceptions to the Illinois Human Rights Act are allowed for religious and charitable organizations. VII. Regulation of Land Sales A. Interstate Land Sales Full Disclosure Act—Federal law regulating the interstate sale of unimproved lots, designed to prevent fraudulent marketing schemes. 1. Administered by the Secretary of Housing and Urban Development (HUD) 2. Requires developers to file statements of record containing numerous disclosures before they can offer unimproved lots in interstate commerce by telephone or through the mail 3. Disclosure report—Developers must provide a prospective purchaser or lessee with a printed report disclosing a. the type of title being transferred, b. the number of homes currently occupied on the site, c. the availability of recreation facilities, d. the distance to nearby communities, e. utility services and charges, and f. soil conditions and foundation or construction problems. 4. Revocation right—Purchasers and lessees have the right to revoke any contract to purchase or lease a regulated lot until midnight on the seventh day after the contract is signed. a. If the purchaser or lessee does not receive a copy of the property report, the purchaser may bring an action to void the contract within two years of signing. 5. Exemptions a. Subdivisions consisting of than 25 lots or those in which the lots are of 20 acres or more b. Lots offered for sale solely to developers c. Lots on which buildings exist d. Lots on which a seller is obligated to construct a building within two years 6. Penalties—Misrepresentation or failure to comply with the act’s requirements subject a seller to criminal penalties (fines and imprisonment) and civil damages. B. State Subdivided-Land Sales Laws IN ILLINOIS . . . The sale or promotion within Illinois of subdivided land is regulated by the Illinois Land Sales Registration Act of 1999. The act regulates
5. Covenants, conditions, and restrictions (CC&Rs) are private rules set up by the developer that set standards for all the parcels within a defined subdivision. IN ILLINOIS…Any restrictive covenant that forbids or restricts conveyance, encumbrance, occupancy, or lease on the basis of race, color, religion, or national origin is void. Exceptions to the Illinois Human Rights Act are allowed for religious and charitable organizations. VII. Regulation of Land Sales A. Interstate Land Sales Full Disclosure Act—Federal law regulating the interstate sale of unimproved lots, designed to prevent fraudulent marketing schemes. 1. Administered by the Secretary of Housing and Urban Development (HUD) 2. Requires developers to file statements of record containing numerous disclosures before they can offer unimproved lots in interstate commerce by telephone or through the mail 3. Disclosure report—Developers must provide a prospective purchaser or lessee with a printed report disclosing a. the type of title being transferred, b. the number of homes currently occupied on the site, c. the availability of recreation facilities, d. the distance to nearby communities, e. utility services and charges, and f. soil conditions and foundation or construction problems. 4. Revocation right—Purchasers and lessees have the right to revoke any contract to purchase or lease a regulated lot until midnight on the seventh day after the contract is signed. a. If the purchaser or lessee does not receive a copy of the property report, the purchaser may bring an action to void the contract within two years of signing. 5. Exemptions a. Subdivisions consisting of than 25 lots or those in which the lots are of 20 acres or more b. Lots offered for sale solely to developers c. Lots on which buildings exist d. Lots on which a seller is obligated to construct a building within two years 6. Penalties—Misrepresentation or failure to comply with the act’s requirements subject a seller to criminal penalties (fines and imprisonment) and civil damages. B. State Subdivided-Land Sales Laws IN ILLINOIS . . . The sale or promotion within Illinois of subdivided land is regulated by the Illinois Land Sales Registration Act of 1999. The act regulates
Chapter_20._Land_Use_Controls.docx