§1708 Certification of Substantially Equivalent State Law

Summary

The Director must certify a State when the State’s laws and rules, taken as a whole, make sellers or lessors disclose information that is at least substantially equivalent to what section 1707 requires and when the State’s enforcement makes that information accurate as much as practicable. If a State does not meet that test, the Director can still certify it if the laws give enough protection to buyers and renters for the matters covered by section 1707 that the State does not require, and if the State’s enforcement keeps required information accurate and gives enough protection for the other matters. A State asking for certification must accept a property report approved by another certified State for land sold or leased in the requesting State, and that approved report is the only report required. After certification, the Director will accept and use for federal filing the disclosure materials and related documents that the State has approved for lots in that State, and may accept State-approved materials for lots outside the State. If a State does not meet the standards, the Director must tell the State in writing what to change. The Director will review certified States from time to time and can withdraw certification if standards lapse. State and local governments may still make and enforce their own nonconflicting land-sale laws, and the Director must cooperate with State regulators.