§ 153A-334. Penalties for transferring lots in unapproved subdivisions.
§ 153A‑334. Penalties for transferring lots inunapproved subdivisions.
(a) If a person who is the owner or the agent of the owner ofany land located within the territorial jurisdiction of a county that hasadopted a subdivision regulation ordinance subdivides his land in violation ofthe ordinance or transfers or sells land by reference to, exhibition of, or anyother use of a plat showing a subdivision of the land before the plat has beenproperly approved under the ordinance and recorded in the office of theappropriate register of deeds, he is guilty of a Class 1 misdemeanor. Thedescription by metes and bounds in the instrument of transfer or other documentused in the process of selling or transferring land does not exempt thetransaction from this penalty. The county may bring an action for injunction ofany illegal subdivision, transfer, conveyance, or sale of land, and the courtshall, upon appropriate findings, issue an injunction and order requiring theoffending party to comply with the subdivision ordinance. Building permitsrequired pursuant to G.S. 153A‑357 may be denied for lots that have beenillegally subdivided. In addition to other remedies, a county may institute anyappropriate action or proceedings to prevent the unlawful subdivision of land,to restrain, correct, or abate the violation, or to prevent any illegal act orconduct.
(b) The provisions of this section shall not prohibit any owneror its agent from entering into contracts to sell or lease by reference to anapproved preliminary plat for which a final plat has not yet been properlyapproved under the subdivision ordinance or recorded with the register ofdeeds, provided the contract does all of the following:
(1) Incorporates as an attachment a copy of the preliminary platreferenced in the contract and obligates the owner to deliver to the buyer acopy of the recorded plat prior to closing and conveyance.
(2) Plainly and conspicuously notifies the prospective buyer orlessee that a final subdivision plat has not been approved or recorded at thetime of the contract, that no governmental body will incur any obligation tothe prospective buyer or lessee with respect to the approval of the finalsubdivision plat, that changes between the preliminary and final plats arepossible, and that the contract or lease may be terminated without breach bythe buyer or lessee if the final recorded plat differs in any material respectfrom the preliminary plat.
(3) Provides that if the approved and recorded final plat doesnot differ in any material respect from the plat referred to in the contract,the buyer or lessee may not be required by the seller or lessor to close anyearlier than five days after the delivery of a copy of the final recorded plat.
(4) Provides that if the approved and recorded final platdiffers in any material respect from the preliminary plat referred to in thecontract, the buyer or lessee may not be required by the seller or lessor toclose any earlier than 15 days after the delivery of the final recorded plat,during which 15‑day period the buyer or lessee may terminate the contractwithout breach or any further obligation and may receive a refund of allearnest money or prepaid purchase price.
(c) The provisions of this section shall not prohibit any owneror its agent from entering into contracts to sell or lease land by reference toan approved preliminary plat for which a final plat has not been properlyapproved under the subdivision ordinance or recorded with the register of deedswhere the buyer or lessee is any person who has contracted to acquire or leasethe land for the purpose of engaging in the business of construction ofresidential, commercial, or industrial buildings on the land, or for thepurpose of resale or lease of the land to persons engaged in that kind ofbusiness, provided that no conveyance of that land may occur and no contract tolease it may become effective until after the final plat has been properlyapproved under the subdivision ordinance and recorded with the register ofdeeds. (1959, c. 1007; 1973, c. 822, s. 1; 1977, c. 820, s.1; 1993, c. 539, s. 1063; 1994, Ex. Sess., c. 24, s. 14(c); 2005‑426, s.3(b).)