1710.105—Cover page.
The cover page of the Property Report shall be prepared in accordance with the following directions:
(b)
The next 3 inches shall contain a warning, centered, in 1/2 inch capital letters in red type with 1/4 inch space between the lines which reads as follows:
READ THIS PROPERTY REPORT BEFORE SIGNING ANYTHING
(c)
The remainder of the page shall contain the following paragraphs beginning 1/4 inch below the last line of the warning:
This Report is prepared and issued by the developer of this subdivision. It is not prepared or issued by the Federal Government.
Federal law requires that you receive this Report prior to your signing a contract or agreement to buy or lease a lot in this subdivision. However, NO FEDERAL AGENCY HAS JUDGED THE MERITS OR VALUE, IF ANY, OF THIS PROPERTY.
If you received this Report prior to signing a contract or agreement, you may cancel your contract or agreement by giving notice to the seller any time before midnight of the seventh day following the signing of the contract or agreement.
If you did not receive this Report before you signed a contract or agreement, you may cancel the contract or agreement any time within two years from the date of signing.
Name of Subdivision
Name of Developer
Date of This Report
(d)
(1)
If the purchaser is entitled to a longer revocation period by operation of State law, that period becomes the Federal revocation period and the Cover Page must reflect the requirements of the longer period, rather than the seven days.
(2)
(i)
If a deed is not delivered within 180 days of the signing of the contract or agreement of sale or unless certain provisions are included in the contract or agreement, the purchaser is entitled to cancel the contract within two years from the date of signing the contract or agreement.
(ii)
The deed must be a warranty deed, or where such a deed is not commonly used, a similar deed legally acceptable in the jurisdiction where the lot is located. The deed must be free and clear of liens and encumbrances.
(B)
A provision that the seller will give the purchaser written notification of purchaser's default or breach of contract and the opportunity to have at least 20 days from the receipt of notice to correct the default or breach; and
(C)
A provision that, if the purchaser loses rights and interest in the lot because of the purchaser's default or breach of contract after 15% of the purchase price, exclusive of interest, has been paid, the seller shall refund to the purchaser any amount which remains from the payments made after subtracting 15% of the purchase price, exclusive of interest, or the amount of the seller's actual damages, whichever is the greater.
(iv)
If a deed is not delivered within 180 days of the signing of the contract or if the necessary provisions are not included in the contract, the following statement shall be used in place of any other recision language:
Under Federal law you may cancel your contract or agreement of sale any time within two years from the date of signing.
(e)
At the time of submission, the developer may indicate its intention to comply with the red printing by an illustration or by a statement to that effect.
(f)
The “Date of This Report” shall be the date on which the Secretary allows the Statement of Record to become effective and shall not be entered until the submission has become effective.
Code of Federal Regulations
[45 FR 40489, June 13, 1980]