Interstate Land Sales Act, Fraud and Specific Disclaimers

The New York Law Journal featured an article authored by Thomas D. Kearns on the Interstate Land Sales Disclosure Act Update of 2013. The update exempts condominium developments from the registration requirements under the Interstate Land Sales Act (ILSA), but it does not immunize sponsors from liability under ILSA's anti-fraud provisions. Because of the potential advantages ILSA offers to plaintiffs over New York law, sponsors should prepare for claims brought under its anti-fraud provisions. The article explores the benefits to plaintiffs of ILSA's anti-fraud provisions over claims under New York law, and discusses potential defenses to such claims including New York's law of specific disclaimers.