European Stars and Stripes (Newspaper) - November 20, 1985, Darmstadt, Hesse                                Build on. In the interim the Developer has been stimulating growth to make these attractive communities. Tilt Ferrn build Parks and equestrian trails donate tend for houses of worship and schools encourage Industry and businesses to move in pave thousands of mile of Road and build Central sewer and water systems. Developers Oiler private financing without subjecting customers to credit checks. Finance charges Are lower than commercial rates and developers work with customers who fall behind in their payments. The three firms generate interest by advertising in r & a army times Navy times air Force times an to guide shoppers by weekly news the o seas Post and the International edition of Newsweek. Serve remembers who buy generally report satisfaction. They said the salesmen were polite knowledgeable and helpful. They were hard pressed to explain Why they d bought expensive property without seeing it but they expressed Faith in the company and the Salesman based on the presentation they received. The companies report legions of satisfied customers. Since the first development began in 1954, the three firms have carved 619.960 Home Sltes out of 424,000 acres in 19 communities. They Point to More than 250,500 satisfied residents As avid supporters. But there s a dark Side to the figures. The numbers Don t Tell that cancellation rates on contracts run up to 25 percent. They Don t Tell that the Price of the land includes markups of up to 50 percent just for marketing and commissions paid on contracts that have Long since been cancelled. They Don t my of the gimmicks needed to sell the property expensive inducements built into the Price of every Home site. Buyers pay even if they never take advantage of the offers. They Don t ten of the salesmen unlicensed by Usa eur roaming Europe for customers. Many salesmen have switched from company to company product to product. In most cases they Haven t seen the land they re Selling according to company officials. The numbers also Don t Tell of complaints. Gds is More than two years behind in promised improvements in True communities involving 28,000 Home Sltes it said. They Don t Tell that the three companies Are not the most financially stable in the world according to their own financial reports. Gds is for Sale. And a new company has just invested $30 million in Deltona so it can expand operations. And despite the promotional pictures of manicured lawns streets with lights country clubs pools schools. Parks and businesses the reality is that most of the communities Are ghost towns harbouring a few inhabitants among acres of undeveloped land. Lehigh acres is an example. Since the Community began in 1954. Developers have Laid out 125,929 Home Sltes among the 57,460 acres. In 31 year of development residents have built 6 600 Homes leaving 119,329 empty lots. Of the empty lots about 6.000 remain to be sold by Lehigh the Prelec Ted growth in Many communities has not materialized. But complaints generally fall on deaf ears because there is no regulation or Law that dictates the Price Developer can ask for land on the open Market. Executives and agents for Lehigh. Deltona and gds d never be touted As investment a thriving Ana in Dellona t Marion Oaki Nar Otah. It s the truth. But few bother to read it r running Telephone lines to isolated lots Tarizona s Lake Hatasu development can Cost homeowners $325,000. Getting electric service installed can run $268,000.a land Salesman might omit those facts during an Oral presentation to prospective buyers. But the revelations about Lake Hatasu atypical for the average development Are in a federally required property report. The property report is our Bible said Jack Brady director of the interstate land sales registration division of the . Department of housing and Urban development. " the report was not created to keep the developers from Selling bad products. It was created to make them Tell the truth. If they disclose the facts in the property reports and people still buy we can t help  developers Selling More than 50 lots Are required by Federal Law to give a report to buyers before a contract is signed. Reports exist for All property being sold to service members in Europe. But a lot of people do not read the reports Brady said. They sign a waiver saying they received it and then they put the report away. It s usually years later when they return to the United states and actually see the property that they discover it s not what they had in mind Brady said. Often their dissatisfaction stems from factors they could have read about in the report. I think it s incumbent on the purchaser to take the property report and really study it Brady said. They should see if it differs from the Oral presentation. There Are loads of complaints. A lot is second guessing not fraud or  after developers prepare their reports seven Hud examiners Check the facts against financial statements complaints and personal knowledge. We tend to be meticulous but fair said John Weaver chief of Hud s examination and policy Branch in the registration division. Hud often demands changes corrections inserts rewrites and warning notices. Developers Are required to update reports when significant changes occur. Property reports were mandated by Congress in the 1968 interstate land sales act. All of this started Back in the 60s." Brady said. People began Selling land on the Back of matchbook covers and whatever. A lot of senior citizens were being ripped  while Lake havasu1 a report is a real Eye opener getting phone and electric service in Forbes Lake of the ozp.rv.9 Park in Missouri seems More reasonable. Its property report said running Telephone lines to the wednesday november 20, 1985 property could run to $400. Getting electric service could Cost $4,365. We Don t protect through might we protect by providing information said Roger Henderson chief of Hud s Lanu Sale enforcement. Our biggest problem is getting people to read what is available to them. They simply will not read or take advantage of what is available to  beware of phantom benefits t he brochures Are Slick sophisticated, contain Glossy color pictures of people sailing golfing swimming fishing strolling playing Tennis. Florida land developers general development corp. And Deltona corp. Present them to inquiring serve remembers. Gds s is entitled a military Man s introduction to Florida and includes a card addressed to the company s military  Deltona s is entitled at ease now you can afford a future in  both suggest benefits for military personnel exceed those for civilians. You be put in your time in the  says Deltona s brochure. You be served your country. And pretty soon the time will come when you can Enoy. The rewards you be  but there Are no special rewards according to Bruce Welner. Gds vice president of sales. There Are no benefits to military people that Don t accrue to civilians except for military Banes and medical facilities Welner said. But getting to the military facilities might not be Worth the Effort of driving from some communities. Shoppers would have to pass Miles of commercial stores malls and doctors to reach the military facilities. Gds s brochure promotes the communities of port Charlotte North port port St. Lude port Malabar and Silver Springs shores. Port Malabar is Only 19 Miles from Patrick fab but Silver Springs shores is a 178-mile roundtrip to the nearest military facility. Port Charlotte North port is a 220-mile roundtrip and port St. Lucie is a 120-mile roundtrip. The stars and stripes Page Iii