Virginia has been a leading state in promoting fair and ethical treatment of the consuming public. In February of 1977, seeing a new need for an examination of the problems presented by the sales of recreational land to citizens of the Commonwealth, the General Assembly passed Joint Resolution No. 254 requesting the Virginia Real Estate Commission to appoint a committee to study recreational land development and sales as follows:

WHEREAS: it has been reported that several states have encountered widespread fraud and deceit in the sale of recreational property; and

WHEREAS: there are reports that developers of certain recreational homesites and campsites in this Commonwealth have misrepresented the facilities available or planned for these developments; and

WHEREAS: certain developers of recreational homesites and campsites in this Commonwealth have been unable to deliver unencumbered general warranty deeds to buyers; and

WHEREAS: certain land developers of recreational homesites and campsites in this Commonwealth have used so-called "land sales contracts" which offer little protection to the buyer; and

WHEREAS: at least one developer of recreational campsites has been unable to pay county real estate taxes despite payment for these taxes to him by the buyers; now, therefore be it

RESOLVED by the House of Delegates, the Senate concurring, That the Virginia Real Estate Commission is requested to appoint a committee to study recreational land developments in this Commonwealth to determine their number, and methods of doing business, and the need, if any, for corrective legislation.

The Virginia Real Estate Commission, shall forward the report to this committee, together with its comments and recommendations, to the Governor and the General Assembly on or before November one, nineteen hundred seventy-seven.

Appointed to serve as Chairperson of the Committee authorized by Joint Resolution No. 254 was Helen A. Kent, Real Estate Commissioner from Waynesboro.

Other members appointed were S. Jeannie Dorman (Shenandoah Farms Property Owners Association), Francis T. Eck (Attorney and Secretary-Treasurer, Virginia Land Association), Ralph C. Gibson (Developer and President, Virginia Land Association), W. H. Groseclose (mortgage lender), J. A. Gustin, P.E. C.L.S. (member of Virginia State Board of Architects, Professional Engineers and Land Surveyors), Thomas F. Johnson, Ph.D. (President of Indian Acres Club of Thornburg, Inc.), Ronald I. Tull (auctioneer), and P. Ann Lawhead (Virginia Citizens Consumer Council and U. S. Department of Housing and Urban Development).

The Committee is grateful to Ruth J. Herrink, Secretary of the Real Estate Commission, the Assistant Secretary William W. Dennis, Jr., and to John Purcell and David Seitz of the Attorney General's Office for their assistance to the Committee.

The Committee met seven times between May 25 and November 1, 1977, including public hearing sessions held in Norfolk and in Alexandria.