Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-07-07
CODE IS ADOPTED
BY HOME BUILDERS
Subdividers Also Subscribe
TO New Set of Rules Gov
erning Business.

A stringent code Of ethics to govern
The development and sale OF Suhoi-
visions was adopted by the home
builders and suodividerS division Of the
National Association Of Real Estate
Boards at meeting held in connec-
ZION with the annual convention or the
association lust closed At Louisville, NY.
This code is revision OF the code
a5opted by the division a year ago.
The revision was made in order TO
give a greater degree Of protection TO
the buyer Of subdivision lots, partic-
ularlv in cases where the SUBDIVISION
property is under a trust agreement
The code which will be presented TO
the board Of directors Of the national
association for their approval, has been
in process Of study by the division Tor
the past three years It constitutes
very definite set of commitments to
which all subdividers having member
shin in the association hold themselves
ii their business practice.
It will give the general mveStment
rubiic assurance that lots purchased
from subdividers having membership in
the National Association of Real Estate
Boards have been developed and sold
under safeguards which assure the
buver that public utilities promised TO
him will be installed. and that title de-
livery will not be held UP, for example
through the operation OF blanket
mortgage on the property. 1t assures
him that il he buys acreage outside the
ritv limits being cut into building lots
II will be sold 10 him definitely labeled
acreage and not as improved property.
Text Of Code.
The text of the code is as follows:
This code is intended TO promote and
maintain fair and equitable relations
between Subdividers and with the
public.
NO subdivider shall announce or sd-
vertise program of subdivision de-
velopnent which is contingent upon
sales unless his other financial resources
or his plan Of financing are such as
substantially TO guarantee the carrying
out Of the program
"A subdivider shall guarantee each
purchaser q good deed 10 his lot of the
character agreed 10 be furnished when
entitled To it under the terms Of his
contract in one of the following WAYS,
"fal A subdivider shall own the
property in fee simple without en-
cumbrance. or
"fhl The title to the property shall
be placed in a trustee Of good standing,
preferably a bank or trust company
authorized BY the State TO accept trusts,
and such trustee shall have authority
TO and shall make arrangements with
the holders Of encunbrances for giving
each purchaser q deed when entitled to
II under the terms OF his contract and
the duties and powers Of the trustee
shall be incorporated in all land con-
tracts and purchasers agreements. or
"fcl The subdivider shall make an
agreement with holders Of eIlcum-
brances on the prouertv providing for
release and giving deed TO anv lot on
which an sgreed portion Of the Dur-
chase price has been paid TO the holder
IF the enct,Yrbranees and such arrange-
Yr,ents shall be made for the payment of
s'lch p'Irchsse prices as will guarantee
its application.
Subdivider Contracts.
when property Is sold upon repre-
Sentation that sidewalk. paving and
clirbing or other local improvements or
se-erx water. or other public utilities
wiIl b furnished. such representation
shall be fully set forth IN all land con-
tracts purchasers agreements and
FfAGk. ana Ll1s 1Ttsf1ktueffb Oh tttSGE I~t-
reserfsti0ns shall be safesfiaraed 10 the
rurchaser in a DEFINITE and sound n1en-
,er. If the s,,b6ivider he's onIv a sell
tng contract ~, thu nronertv. the owner
rv vendor shsTI carry out the nrovisions
herein contained. and shall sign. issue
9nd deliver all land rortra"ts. pur-
cr-~s-s' agreements and deeds.
THE CONTRACT 0F Heed nf a lot DUR
-haee- shall snecifv what iranrove-
y4en+s and utilities are ineluS~S IN the
rslrrhsse mice ara what ehIigatiors.
- anv. either tn t'ae subdivider or to
the pubiic authorities, are assumed by
tie nu-rhaser
"Pronertv divided into undevelooed
Ia9s end lncstod beyond and not ad-
toininc the limits Of ra"nicinali'v
yrust be slid acreage" ard without
nro~fisa ~ improvements based on
py~lahie annexation.
Private Improvement nr public utility
y--ngre pms IN develconaenfe outside of an
s,ycs-izn6 cnvnvnt,,7'+~ snS MT IN he IN
S.s1I~< cr oy1r-ated b. y must ne 81
Tss~-sp~4 in the advertisement Of the
property.
Emnlovment af Statesmen.
EMO s,ltdivi6er shall EMPLOY = sales
man enanIored bv another s''boivider IN
renrsxent him or m solicit prospects
d~reloped in connection with the pres
ert employer.
THE American flag nav be displayed
FIR netriofic PURPOSES but in its Use 1t
shall not be combined with advertising
r-stter or displayed in connection with
p&~+1tves snd other advertising matter.
bit shall only be used in such manner
IS 20 conform with the flag art ard
rAn1fnN ~aas4ga$fry@e s-fst1 voErepf tn
the proper use OF the flag"