Misleading sales practices.

CFR · 2024-01-01 · US · Title 12

Generally, promotional statements or material will be judged on the basis of the affirmative representations contained therein and the reasonable inferences to be drawn therefrom, unless the contrary is affirmatively stated or appears in promotional material, or unless adequate safeguards have been provided by the seller to reasonably guarantee the occurrence of the thing inferred. For example, when a lot is represented as being sold by a warranty deed, the inference is that the seller can and will convey fee simple title free and clear of all liens, encumbrances, and defects except those which are disclosed in writing to the prospective purchaser prior to conveyance. The following advertising and promotional practices, while not all inclusive, are considered misleading, and are used to evaluate a developer's or agent's representations in determining possible violations of the Act or regulations. In this section “represent” carries its common meaning. (a) (b) (1) It is clearly stated that the scenes or improvements are not related to the subdivision offered; or (2) In the case of drawings that the scenes or improvements are artists' renderings; (3) If the areas or improvements shown are available to purchasers, what the distance in road miles is to the scenes or improvements represented. (c) (d) (e) (f) (g) (2) The use of the terms such as “minutes away,” “short distance,” “only miles,” or “near” or similar terms to indicate distance unless the actual distance in road miles i

official document · source cfr-2024 · id 12:§ 1011.25