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the boom in this business first started. This office recently established a Consumer Fraud Section and our investigative staff works closely with this Section in investigating the various land subdivision plans and advertising which, we might add, has aided tremendously. Very truly yours,

OLIVER E. PAYNE, Deputy Attorney General.

JULY 27, 1966. Mr. J. L. ELDERS, Director, Division on Real Estate, State of Utah, Salt Lake City, Utah

DEAR MR. ELDERS : * * *

We are very much interested in the matters that have already been discussed with you and would appreciate your comments for our hearing record. We will especially welcome:

2. A description of new selling methods used within Utah for installment selling of land.

3. Your comments on difficulties in enforcing state laws on interstate land sales.

4. A summary of the Utah law on installment land sales. 5. Samples of property reports issued by your office. Sincerely,

HARRISON A. WILLIAMS, Jr.

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2. The selling methods used within the State resemble that of $10 down and $10 a month varying in price. This is done on an overall basis and usually a general sales contract is used or an earnest money receipt and offer to purchase with title being conveyed through a warranty deed. However in some cases they have attempted to induce the buyer through promises which were impossible and brochures with pictures of beautiful wooded areas with lakes, etc., when actually it was nothing more than barren, rocky and alkali land.

3. Our difficulties lie mainly in the widespread manner in which our land developments originate. We haven't enough manpower to enable us to check and contact these various developers as closely as we would prefer.

4. We are enclosing for your convenience a copy of the Utah Code Annotated. We have marked the page and section. (In Committee files.)

5. A copy of our registration questionnaire and subdivision kit is enclosed along with a public report issued to one of our current developers by this department. We are also enclosing a copy of a new subdivision law to our regular session of the Legislature in January which we hope will be enacted. (In Committee file.)

We hope that this has been some help to you and will support any legislation that the Federal Government enacts that will help us in supervising and controlling the various land schemes. If there are any questions, please feel free to contact us. Yours very truly,

J. T. ELDERS, Director.

LAND DEVELOPMENTS ISSUED CEASE AND DESIST ORDERS 1. Brazilian Lands (copy of file enclosed): This company represented by Selig Brothers Real Estate Company was in violation of the Law (61-2-15 & 16). They were attempting to sell land in Brazil, (impossible for anyone to inspect) to Utah residents. The Cease and Desist Order issued January 15, 1965.

2. Horizon Land Corporation: Sales agents misrepresented themselves by promising free plane trips and meals for an on-sight inspection by prospective purchasers who were to place an acceptable sum of money for a down-payment on any property in the subdivision with the knowledge of 100% money-back guaranty. Complaints were received by this office as to monies not refunded according to this contract. Department investigated and issued a Cease & Desist Order May 28, 1965. Upon full compliance with the law by this company, said order was lifted June 14, 1965.

3. Meadowland Ranches: Company was in violation of Utah Law (61–2–15 & 16) by selling lands in Oregon to Utah residents. Cease & Desist Order issued April 11, 1966. Company plans to file with this department in near future.

4. Metro-Urban Investment, Inc., Dixie Deer Estates: Complaint received August 4, 1965, concerning deed to property bought not received. This department investigated, found that Jack Facer and Louis Selleneit were representing themselves as President and Director of said company. Sales would be made, cash received for lots and cabins which were never built and deed never sent to purchaser. Cease & Desist Order issued August 23, 1965. In many cases purchaser had completely paid for said lot and developer had failed to issue deed and proceeded and obtained the maximum loan on said property after it had been paid for.

ISSUED BY STATE REGULATORY AGENCIES

(Considerable discussion was devoted during the hearing to property reports provided to prospective buyers by State agencies concerned with regulating installment land sales. Ïhe following samples are provided.)

FLORIDA

GULF AMERICAN LAND CORPORATION

7880 BISCAYNE BOULEVARD

MIAMI, FLORIDA 33138

PROPERTY REPORT

OF

RIVER RANCH ACRES

Located in Polk County, Florida

(Date:) May 6, 1965

This Report is filed with the FLORIDA INSTALLMENT LAND SALES BOARD as required by law, however, the filing does not constitute an endorsement of the property and the Florida Installment Land Sales Board has not, in any way, passed on the merits of the land being offered for sale or lease.

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(b) Describe route to subdivision:

19 miles S.E. of Lake Wales to intersection of State Roads 60 and 630
16 miles N.E. of Frostproof to intersection of State Roads 630 and 60

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6. Describe briefly the present topographical characteristics of the land:

Sand with underlying clay. Some of the land is cypress and pine forest. Some is pasture land. There are some lakes. Elevations vary between 50 ft. and 118 ft. above MSL.

7. Are the lands or any portion thereof covered by surface waters in any part of the year? Yes X No

See Item 22 for explanation.

.

8. (a) Will any draining of said lands be necessary to render them usable?

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9. Will any subsurface improvement, or special foundation work be necessary to construct one-story commercial or residential structures on the property? Yes

No х

10. Summarize all restrictions, easements or reservations on the property.

Private easements for road right-of-way purposes have been recorded by the Seller in favor of its purchasers in the Public Records of Polk County, Florida. Prior owners of portions of the property have reserved oil, gas and mineral rights, together with right of entry. These reservations will affect the ability of a purchaser to obtain mortgage financing from many lending institutions.

PART III
IMPROVEMENTS

Il. At the time a deed is required to be delivered to purchaser, will all lots or parcels of land in this area be accessible by conventional automobile over roads? Yes

No х

(a) if no, how is access to be obtained? Limited portions of the property are accessible by conventional auto

from State Roads #60 and #630. The remaining portions of the property are accessible only by Jeep or four-wheel drive vehicles.

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(a) If yes, are the individual parcels marked or staked in any manner so that purchasers will be able to locate them without additional survey? Yes

No X

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(b) If no, will individual parcels be marked or staked in any manner before they are delivered to purchasers? Yes

No Х How will they be marked? They will not be marked.

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List: (Give percentage of completion and date of completion)

Plans completed – construction scheduled for completion on or before October 31, 1965. See also

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able deposit.

17. Are there any provisions for maintenance of roads, drainage and canals in the subdivision? Yes

No X . No roads, drainage or canals promised.

18. If this is a building site subdivision, what plans have been made for the disposal of sewage?

Not a building site subdivision.

19. If this is a building site subdivision, how will purchaser obtain potable drinking water? (Give your estimate

of the cost to purchaser)
Not a building site subdivision.

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