The CFPB recently announced that it had entered into a consent order with a land-development company and several individuals involved in the company’s operations to settle charges that the respondents violated the Interstate Land Sales Full Disclosure Act (ILSA). According to the findings of fact and conclusions of law in the consent order which were admitted by the respondents, the respondents made misrepresentations related to the roads in a Tennessee property development in which they were selling “lots” within the meaning of ILSA. The consent order requires the respondents to make road repairs consistent with an engineering report to be prepared by a company designated in the consent order.
The consent order states that in property reports registered with HUD and a public offering statement, respondents represented that all roadways in the development had been completed and built to county standards for approved private status. It further states that the respondents also represented in the property reports that the seller would maintain the roads until they were dedicated to and accepted by Van Buren County, Tennessee. According to the consent order, the development company had not maintained the roads and the roads had not been accepted by the county.