Attention in Florida has recently accused on questionable land listing firms who contact property owners and offer to list their lots for resale.

The resale listing firms persuade owners of highly promoted subdivisions in Florida, as well as the Southwest, to pay them fees of from $50 to $500 merely to list the lots for sale in publications distributed to selected lists of investors.

Groundwork for this business was set up in the 1950s and early 1960s when thousands of Americans bought land sight unseen and ore still holding on to it hoping to sell at a profit. But the pitch of the land listing firms could well appeal to even the most satisfied property owner since they often promise to resell the land at double or triple the original price. However, most of the firms make their money from the listing fees and need not, and for the most part do not, sell any lots.

At least one ALDA member has taken steps to worn its property owners of these fraudulent listing schemes. The Diamondhead Corporation of Mountainside, New Jersey, sent out letters to all their property owners early this month explaining the situation. Enclosed with the letter was a lengthy article from the September-3, 1973, Miami Herald which gave detailed coverage to the land listing business.

Kevin M. Hayes, Director of Consumer Affairs for Diamondhead, did not comment on the contents of the article, but advised the property owners to "thoroughly investigate" before listing a lot and paying a fee. Hayes also pointed out that Diamondhead did not authorize brokers to charge a fee for reselling lots, but only a commission, if they were successful. The Diamondhead letter emphasizes that they make every effort to keep the names of their property owners confidential.

According to the Herald article the land listing firms have come under the scrutiny of both OILSR and the Florida Division of Consumer Affairs. The Association hopes that other land development companies will alert their purchasers to the land listing practices since they are damaging to both the consumer and the development companies. A copy of the Miami Herald article may be obtained from the ALDA national office in Washington, D. C.

(Legislative Report, American. Land Development Association)