12 CFR §1010.8

1. (a)The sale of lots in a subdivision consisting of noncontiguous parts is exempt from the registration requirements of the Act if:
   1. (1)Each noncontiguous part of the subdivision contains twenty or fewer lots; and
   2. (2)Each purchaser or purchaser's spouse makes a personal, on-the-lot inspection of the lot purchased prior to signing a contract.
2. (b)For purposes of this exemption, interruptions such as roads, parks, small bodies of water or recreational facilities do not serve to break the contiguity of parts of a subdivision.
3. (c)The sale must also comply with the anti-fraud provisions of § 1010.4(b) and (c) of this part.