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Interstate Land Sales Do's and Don'ts

Here is a quick tip list that you can print and may want to use during your home buying process. If you have questions, contact HUD's Interstate Land Sales office.

  • Inspect your property before you buy.
  • Purchase any land site unseen.
  • Be well informed about the land and the developer.
  • Rely on any verbal promises that are not incorporated into the terms of your contract.
  • Know your contractual rights.
  • Sign any papers until you have read all of them.
  • Ask questions.
  • Sign any receipt for a Property Report unless you have received and read it.
  • Get any verbal promises in writing.
  • Succumb to high pressure tactics used during a personal visit, a telephone call or through advertising materials.
  • Ask if the developer has registered the subdivision with HUD and, if not, if the developer is operating under an exemption.
  • Assume that the developer is registered with HUD.
  • Use common sense.
  • Assume that the government has endorsed or inspected the land development even if it is a registered subdivision.
  • Check any advertising materials to ensure that all promised amenities and utilities are incorporated into the Property Report and contract.
  • Assume that HUD has the authority to force a developer to complete promised amenities or utilities.
  • Notify the developer in writing if you wish to cancel.
  • Attempt to cancel your contract without putting the request in writing.
  • Call HUD, the Office of your state Attorney General, and the Better Business Bureau, and ask if any complaints have been filed against the developer or if any investigations are in progress.
  • Be tempted by investment pitches that seem to be too good to be true.

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