Urban planning community

+ Reply to thread
Results 1 to 6 of 6

Thread: Who owns plat?

  1. #1
    Member
    Registered
    Aug 2006
    Location
    Indiana
    Posts
    2

    Who owns plat?

    We were in a contract to sell 16 acres to a developer to put 34 house's on. Well he can not get the financing. So he is not going to be doing the approved subdivision.
    My question is who owns the right to our plat? He has spent $40,000.00 plus his time on getting approval so he said the plat is worth something because with out it we just have raw land. We want to buy the plat but he wants $130,000.00. They never bought our land so we have another buyer can we sell it or will they not be able to do subdivision or repeat the entire process again? Need help soon!

  2. #2
    Cyburbian The One's avatar
    Registered
    Mar 2004
    Location
    Where Valley Fever Lives
    Posts
    6,949

    Well....

    If the plat was recorded and final (including agreements) then you seem to be the owner of 34 new lots. Did you sign a final plat as owner? The previous developer couldn't file for another plat without the owners signature. This would be great for you, since you should be able to market the new lots as your own and the developer just walked away from those "soft" money investments. This is called the cost of doing business.

    What I suspect took place is that the developer didn't get all the way through the final plat process and no new plat has been recorded. Since they paid for the plans and did the work, the surveyor (if not working on the direct payroll for the developer) could ask for a new contract with you to finish the plans. This depends on how the contract was setup with the developer and who retains the right to the plan. If a preliminary plat was completed under your name as the owner and the final was not completed, you could just hire another surveyor to start a new final plat under your name or a new developers name. Check to make sure the preliminary plat hasn't expired (we give people one year here in this part of Arizona).

    I've seen new surveyors come in and ask for old plat applications (public record) presumably to re-create the plat application under their stamp to start the process over for a developer.

    As always, run this by a decent land use attorney in your state.....I am NOT an Attorney....but I play one on TV......
    Skilled Adoxographer

  3. #3
    Cyburbian Jess's avatar
    Registered
    Jul 2006
    Location
    Tip of the Iceberg
    Posts
    364
    The situation can be viewed in the following scenarios;

    Case1: If the contract is a joint-venture between you and the developer for building the 34 houses and no transfer of deeds for the 16acre were done to the developer, this contract is considered only as a builder-owner contract. Since the builder failed to deliver the 34 houses, the contract is considered null and void., You still own the plat.

    Case2: If the contract is a joint-venture wherein the plat was transferred to the name of the developer (in his name), the developer is now the rightful owner. She has the right to dispose the plat.

    Case2: If the contract is a joint-venture wherein the plat is transferred in a corporation, the corporation is the rightful owner provided the corporation still exist. The corporation has the right to dispose the property. If you are one of the incorporators, you have a share on the proceed of the sale equal to the % of share that you put into the corporation.

    You can also consult your lawyer who executed the contract and notarization for assistance.

  4. #4
    Cyburbian cch's avatar
    Registered
    Mar 2006
    Location
    Machesney Park, IL
    Posts
    1,437
    Usually, even if a plat is voted on and approved by a municipality, there is a condition that a letter of credit must be submitted (proof they can help pay for infrastructure improvements). I'm guessing this is where the project fell apart, cause the developer couldn't get the letter of credit, which means the plat was never actually created, cause the condition wasn't met.

  5. #5
    Cyburbian nerudite's avatar
    Registered
    Aug 2001
    Location
    Edmonton
    Posts
    5,502
    Quote Originally posted by romigirl
    We were in a contract to sell 16 acres to a developer to put 34 house's on. Well he can not get the financing. So he is not going to be doing the approved subdivision.
    My question is who owns the right to our plat? He has spent $40,000.00 plus his time on getting approval so he said the plat is worth something because with out it we just have raw land. We want to buy the plat but he wants $130,000.00. They never bought our land so we have another buyer can we sell it or will they not be able to do subdivision or repeat the entire process again? Need help soon!
    Why don't you just call your county or city and ask them if you, as the property owner, can finish out the project. Each place is different on how they deal with applicants vs. owners.

  6. #6
    Cyburbian Cardinal's avatar
    Registered
    Aug 2001
    Location
    The Cheese State
    Posts
    9,893
    Echoing The One, if it was recorded, you own the plat. That is not necessarily the same as owning any engineering they may have completed for infrfastructure, grading, etc. If the plat has not been recorded, you probably do not have any rights to it, depending on your agreement with the developer.
    Anyone want to adopt a dog?

+ Reply to thread

More at Cyburbia

  1. Replies: 9
    Last post: 08 Feb 2013, 5:45 PM
  2. Replies: 8
    Last post: 26 Oct 2007, 3:16 PM
  3. Subdivision Old subdivision plat
    Land Use and Zoning
    Replies: 20
    Last post: 02 Aug 2006, 4:42 PM
  4. Replies: 9
    Last post: 23 Nov 2005, 1:07 PM
  5. Replies: 7
    Last post: 17 Dec 2004, 6:56 PM