12 C.F.R. § 1010.14 – Regulatory exemptions.

(a) Eligibility requirements. The following transactions are exempt from the registration requirements of the Act unless the Director has terminated the exemption in accordance with paragraph (b) of this section.
1. (1) The sale of lots, each of which will be sold for less than $100, including closing costs, if the purchaser will not be required to purchase more than one lot.
2. (2) The lease of lots for a term not to exceed five years if the terms of the lease do not obligate the lessee to renew.
3. (3) The sale of lots to a person who is engaged in a bona fide land sales business.
4. (4) The sale of a lot to a person who owns the contiguous lot which has a residential, commercial or industrial building on it.
5. (5) The sale of real estate to a government or government agency.
6. (6) The sale of a lot to a person who has leased and resided primarily on the lot for at least the year preceding the sale.
(b) Termination. If the Director has reasonable grounds to believe that exemption from the registration requirements in a particular case is not in the public interest, the Director may, after issuing a notice and giving the respondent an opportunity to request a hearing within fifteen days of receipt of the notice, terminate eligibility for exemption. The basis for issuing a notice may be the conduct of the developer or agent, such as unlawful conduct or insolvency, or adverse information about the lots or real estate that should be disclosed to the purchasers. Proceedings will be governed by § 1012.238.
(c) The sale must also comply with the anti-fraud provisions of § 1010.4(b) and (c) of this part.