It should set an appropriate limit to the amount of land that can be claimed, (and it will be easier to increase the size of a grant, later, than to reduce it). It should require the settlement to behave by international norms. It should require that the settlement be open to all and prohibit anti-competitive behavior. Regulations could even include protection for sites of historical or other special importance.
It might also be required that only a certain percentage of land sale revenue can be used to repay the cost of establishing the settlement and taken as profit, the balance being retained to support the settlement itself until it can find ways to earn enough to become self sufficient.
Note: The first 25 FAQs below are reprinted from the Space Settlement Initiative website.
What is the real purpose of enacting a Lunar land claims recognition law?
What does international law say about private property ownership in space?
Can there be property ownership without national sovereignty?
What if other nations refuse to recognize land claims in space?
Why not allow smaller, limited land claims for easier steps than settlement?
Could lunar land really be worth enough money to make a difference?
What conditions should the US set for recognition of a claim?
How much land should a settlement be able to claim... and why?
Are the weaknesses and compromises in this plan likely to be permanent?
Could other sources of revenue be enough without land claims recognition?
What effect would this have on NASA and the aerospace companies?
The FAQs above cover basic questions about Lunar Land Claims Recognition. The following questions address more advanced issues.
If we really went to the Moon in 1969, why aren't we there now?
What were the assumptions before the Outer Space Treaty, (e.g. Robert Heinlein)?
Will changing how NASA works bring the taxpayers back on board?
Could this law force the US to recognize a foreign government's Lunar land claim?
Would Article VI of the Outer Space Treaty prohibit Lunar land claims recognition?
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