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Biden announces action following deceptive marketing allegations against Ryan Homes

Consumer Protection | Criminal Division | Department of Justice | Department of Justice Press Releases | Date Posted: Thursday, September 11, 2008



Media Release
September 11, 2008

Wilmington, DE—Today, Attorney General Beau Biden announced that Ryan Homes will pay
hundreds of thousands of dollars and will change its marketing practices following a Delaware
Department of Justice investigation of consumer complaints of deceptive marketing involving
homeowner fees at the Odessa National development in Townsend, Delaware.
“The Delaware Department of Justice is standing up for consumers who were misled when
making one of the most significant financial decisions of their lives – the purchase of their home,”
Attorney General Joseph R. Biden, III stated. “We’re holding the developer accountable to the law
and making it absolutely clear that they have an obligation to provide full disclosure to consumers.”
Homeowners of Hearthstone, a 55-and-over community within Odessa National, complained
that at the time of purchase, Ryan Homes stated that homeowners were exempt from an annual $800
fee assessment for membership to the development golf course. However, after purchase, those fees
were charged to all homeowners as mandatory assessments. Today’s agreement requires Ryan Homes,
the trade name of NVR, Inc., to pay the golf-related assessment fees of any homeowner in Hearthstone
who filed a complaint for as long as the homeowner owns the home. In addition, Ryan Homes will
reimburse those homeowners $28,858, representing fees already paid to Odessa National Golf Course,
LLC. The Delaware Department of Justice Consumer Protection Fund will also receive $25,000 in
investigative costs. In total, it is expected that Ryan Homes will pay nearly one-half million dollars.
Under the agreement homeowners have the choice of opting out of the golf course fee
obligation or to retain their golf club membership and the related assessment fee. Those who choose to
opt out will be reimbursed for any golf- related fees already paid. 68 homeowners are eligible to
participate in the agreement and must select one of these two options by November 21, 2008.
The agreement also requires Ryan Homes to advise all prospective home purchasers of golfrelated
fee obligations and to obtain homeowners’ signatures on a receipt and acknowledgement form.
Additional Delaware Department of Justice investigations at Odessa National are pending.
# # #

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Biden announces action following deceptive marketing allegations against Ryan Homes

Consumer Protection | Criminal Division | Department of Justice | Department of Justice Press Releases | Date Posted: Thursday, September 11, 2008



Media Release
September 11, 2008

Wilmington, DE—Today, Attorney General Beau Biden announced that Ryan Homes will pay
hundreds of thousands of dollars and will change its marketing practices following a Delaware
Department of Justice investigation of consumer complaints of deceptive marketing involving
homeowner fees at the Odessa National development in Townsend, Delaware.
“The Delaware Department of Justice is standing up for consumers who were misled when
making one of the most significant financial decisions of their lives – the purchase of their home,”
Attorney General Joseph R. Biden, III stated. “We’re holding the developer accountable to the law
and making it absolutely clear that they have an obligation to provide full disclosure to consumers.”
Homeowners of Hearthstone, a 55-and-over community within Odessa National, complained
that at the time of purchase, Ryan Homes stated that homeowners were exempt from an annual $800
fee assessment for membership to the development golf course. However, after purchase, those fees
were charged to all homeowners as mandatory assessments. Today’s agreement requires Ryan Homes,
the trade name of NVR, Inc., to pay the golf-related assessment fees of any homeowner in Hearthstone
who filed a complaint for as long as the homeowner owns the home. In addition, Ryan Homes will
reimburse those homeowners $28,858, representing fees already paid to Odessa National Golf Course,
LLC. The Delaware Department of Justice Consumer Protection Fund will also receive $25,000 in
investigative costs. In total, it is expected that Ryan Homes will pay nearly one-half million dollars.
Under the agreement homeowners have the choice of opting out of the golf course fee
obligation or to retain their golf club membership and the related assessment fee. Those who choose to
opt out will be reimbursed for any golf- related fees already paid. 68 homeowners are eligible to
participate in the agreement and must select one of these two options by November 21, 2008.
The agreement also requires Ryan Homes to advise all prospective home purchasers of golfrelated
fee obligations and to obtain homeowners’ signatures on a receipt and acknowledgement form.
Additional Delaware Department of Justice investigations at Odessa National are pending.
# # #

image_printPrint


Graphic that represents delaware news on a mobile phone

Keep up to date by receiving a daily digest email, around noon, of current news release posts from state agencies on news.delaware.gov.

Here you can subscribe to future news updates.