Individual Liability of Shareholders, Officers, and Directors Under the Interstate Land Sales Act

45 N.Y. Real Property Law Journal No.2 Spring/Summer 2017, 18-22

6 Pages Posted: 12 Jun 2017

See all articles by Vincent DiLorenzo

Vincent DiLorenzo

St. John's University - School of Law

Date Written: June 8, 2017

Abstract

Real estate developments are typically conducted through the medium of business entities intended to shield its owners of individual liability. Corporations, limited liability companies and limited partnerships have traditionally been viewed as effective mechanisms to accomplish this outcome. Does current law continue to allow such mechanisms to create a shield from individual liability? This article explores this issue by examining the liability provisions of the Interstate Land Sales and Full Disclosure Act (ILSA). The conclusion drawn is that the terms of the Act, as interpreted and applied by the courts, allow owners of these business entities to be held individually liable for fraudulent conduct in violation of the Act.

Keywords: Fraud, Individual Liability, Interstate Land Sales Act, Control Person Liability

JEL Classification: K11, K42

Suggested Citation

DiLorenzo, Vincent, Individual Liability of Shareholders, Officers, and Directors Under the Interstate Land Sales Act (June 8, 2017). 45 N.Y. Real Property Law Journal No.2 Spring/Summer 2017, 18-22. Available at SSRN: https://ssrn.com/abstract=2983181

Vincent DiLorenzo (Contact Author)

St. John's University - School of Law ( email )

8000 Utopia Parkway
Jamaica, NY 11439
United States

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