§1708 Certification of Substantially Equivalent State Law

Summary

A State can be certified if the Director finds that the State’s laws and rules, taken as a whole, make sellers or lessors of non‑exempt lots give buyers information that is at least as good as the information the federal law requires, and the State makes sure that information is accurate as much as possible. If a State’s rules do not match federal disclosures exactly, the Director can still certify the State if its laws offer enough protection for buyers on the same topics and the State makes sure required information is accurate and that buyers get enough protection where the State does not require a disclosure. A State asking for certification must accept a property report approved by another certified State for land in that other State; that approved report is the only one needed for that land. After certification, the Director will accept the State’s disclosure forms and related papers as the federal statement of record and property report to use where the lots are sold or leased. The Director may also accept State‑approved materials for lots outside that State. If a State does not meet the standards, the Director will tell the State in writing what must change. The Director will review certified States from time to time and can withdraw certification if standards slip. State and local governments can still make and enforce laws that do not conflict with the federal law, and the Director must work with State regulators.