The House of Representatives of the U.S. Congress, in a surprising nonpartisan move, passed H.R. 2600 on September 26, 2013. This bill, submitted by New York Congresswoman Carolyn Maloney, exempts developers of condominiums from compliance with the filing requirements of the Interstate Land Sales Full Disclosure Act, commonly referred to as ILSA. The bill passed the House with a unanimous vote in favor. It is expected to be introduced into the Senate in the near future.
If this bill passes both Houses and is signed by the President, it will eliminate the necessity to file a Property Report with the Consumer Finance Protection Bureau and eliminate the possibility of rescission lawsuits by disgruntled buyers for failure to file such report.
Were this bill a law during the downturn beginning in 2008, it would likely have prevented much of the onslaught of rescission lawsuits that followed.