With today’s low interest rates it a great time to think about investing in the real estate market, especially in land for sale. Often the sale of a parcel of land involves the purchaser living in a state other than the one where the land is located. When the land is not located in the purchaser’s home state, the land sale is called an intestate sale. According to real estate law this type of land sale is protected by the Interstate Land Sales Act. The Interstate Land Sales Full Disclosure Act, which is modeled after securities laws, protects buyers in many ways including giving them the right of rescission
Administered by the United States Department of Housing and Development, also known as HUD, the Interstate Land Sales Act requires that sellers make full disclosure to all parties interested in the land. For example, if a person living in Rhode Island sees a beautiful parcel of land in Arizona for sale on the Internet and wants more information on the parcel, the seller must disclose all relevant information about the land such as whether there is an access road, if it is located on a steep mountain slope or is on an ancient Indian Burial site. The federal law also ensures that certain advertising procedures are followed by the companies selling the land.
In addition to federal laws and guidelines regulating land sales, there are real estate laws governing the sale of land in each state. Many of the laws differ from state to state, and in some states, there are differences in the real estate laws within the state depending on the location of the land for sale and the specific conditions and circumstances of the parcel. Real estate laws cover all aspects of land sales including land that was involved in foreclosure, land determined to be in adverse possession, and land that is considered to be unclaimed or lost property. These examples are only a few of the many different types of land sale situations covered in the often complicated laws of real estate.
When you make the decision to invest in land make certain you are dealing with a reputable land sales company. The federal and state real estate laws were put into place to protect you and your future investment.