A Brief Guide to the Interstate Land Sales Full Disclosure Act (ILSFDA)

Purchasing a pre-construction condominium, home, townhouse, or other structure can be a really exciting event. When everything goes according to your expectations, you will have the time you need to prepare to move into your new home. Upon its completion, you’ll be living in a brand new home with all the latest and greatest features that you want. There are times, however, that things don’t go according to plan. If or when this happens, you need to be aware of all your legal rights.

Specifically, it is a good idea to be aware of the Interstate Land Sales Full Disclosure Act (ILSFDA) and how it can apply to this situation. The ILSFDA is a law that allows buyers to terminate contracts for pre-construction structures and still receive all or part of the deposit back if the construction company fails to live up to one or more of the requirements laid out in the Act.

Possible Violations of the ILSFDA

In order to get your deposit back under the ILSFDA, you must be able to show that the construction companies or developers violated certain requirements and/or responsibilities under the law.

  • False Promises – If the developer or other party makes false promises about the property or structure, the buyer can back out of the deal and receive their deposit back.
  • Missing Information – When key information about the deal is missing, the buyer has the right to back out of the deal when they discover the details.
  • Unreasonable Delays – A contract should include a reasonable date by which the construction will be completed. If a project takes years to complete, the buyer has the right to cancel the agreement and get their deposit back.
  • Violation of Rights – Some developers will write a contract in such a way as to virtually eliminate the rights of the buyer. These contracts are voidable when contested in court.

Let Us Review Your Contract

If you have a pre-construction contract that you aren’t happy with, give us a call so we can review it on your behalf. We have helped many people exit these types of unfair deals and get their deposits back over the years, and we’d be more than happy to help determine if this is an option for you. You can contact the Law Office of Ray Garcia to discuss the details of your situation and set up a consultation for us to look over your contract and explain all your options.