California Real Estate Practice Exam

Considering the "Interstate Land Sales Full Disclosure Act," which of the following is NOT true?

1. Any contract to purchase or lease may be revoked by purchaser or lessee within 7 days of signing the contract.

2. Controls subdivisions of 25 (or more) lots, unimproved at the time of sale.

3. Developer must register subdivision with Office of Inter-Land Sales Registration (OILSR), and provide copy of "property report" to purchaser or lessee.

4. Violations are punishable by fines up to $50, imprisonment of up to 5 weeks, or both.

The correct answer is: Any contract to purchase or lease may be revoked by purchaser or lessee within 7 days of signing the contract.

The assertion that any contract to purchase or lease may be revoked by the purchaser or lessee within 7 days of signing the contract is not true in the context of the Interstate Land Sales Full Disclosure Act. This Act does grant buyers the right to rescind their purchase agreements, but it typically provides a full 7 days only for specific situations regarding subdivision sales, and not for all contracts in general. The correct understanding of the Act reveals that buyers must be given adequate time to review disclosures and make informed decisions, leading to protections against fraudulent practices. It is essential to note that the time frames and conditions for revocation specifically pertain to particular regulations set out by the Act. On the other hand, the details about the definition of what constitutes a subdivision, the requirement for developers to register their projects and provide a property report, and the potential penalties for violations of the Act all accurately represent its provisions, confirming their truthfulness in the context of real estate transactions involving subdivisions.