What regulation must Max comply with when selling his 123-lot subdivision across state lines?

When selling a subdivision that includes numerous lots across state lines, Max must comply with the Interstate Land Sales Full Disclosure Act (ILSA), which is regulated by the Consumer Financial Protection Bureau (CFPB). This regulation requires developers of certain types of residential property to register with the CFPB and provide a disclosure statement to potential buyers.

The rationale behind this requirement stems from the need to protect consumers from misleading sales practices and to ensure they have access to all pertinent information about the property. By registering with the CFPB, Max would be adhering to the federal law that aims to ensure transparency and fairness in real estate transactions that span multiple states, thus safeguarding consumer interests.

Other options, such as registering with a local city council or obtaining a state license, while important in their own contexts, do not specifically address the requirement for out-of-state sales under this federal statute. A personal financial statement does not pertain to the regulation of selling real estate but rather relates to personal financial assessment or eligibility for loans or financing.