§ 160A-375. Penalties for transferring lots in unapproved subdivisions.
§ 160A‑375. Penaltiesfor transferring lots in unapproved subdivisions.
(a) If a city adopts anordinance regulating the subdivision of land as authorized herein, any personwho, being the owner or agent of the owner of any land located within thejurisdiction of that city, thereafter subdivides his land in violation of theordinance 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 such ordinance and recorded in the office of theappropriate register of deeds, shall be 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 shall not exempt thetransaction from this penalty. The city 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. 160A‑417 may be denied for lots that havebeen illegally subdivided. In addition to other remedies, a city may instituteany appropriate action or proceedings to prevent the unlawful subdivision ofland, to restrain, correct, or abate the violation, or to prevent any illegalact or conduct.
(b) The provisions ofthis section shall not prohibit any owner or its agent from entering intocontracts to sell or lease by reference to an approved preliminary plat forwhich a final plat has not yet been properly approved under the subdivisionordinance or recorded with the register of deeds, provided the contract doesall of the following:
(1) Incorporates as anattachment a copy of the preliminary plat referenced in the contract andobligates the owner to deliver to the buyer a copy of the recorded plat priorto closing and conveyance.
(2) Plainly andconspicuously notifies the prospective buyer or lessee that a final subdivisionplat has not been approved or recorded at the time of the contract, that nogovernmental body will incur any obligation to the prospective buyer or lesseewith respect to the approval of the final subdivision plat, that changesbetween the preliminary and final plats are possible, and that the contract orlease may be terminated without breach by the buyer or lessee if the finalrecorded plat differs in any material respect from the preliminary plat.
(3) Provides that if theapproved and recorded final plat does not differ in any material respect fromthe plat referred to in the contract, the buyer or lessee may not be requiredby the seller or lessor to close any earlier than five days after the deliveryof a copy of the final recorded plat.
(4) Provides that if theapproved and recorded final plat differs in any material respect from thepreliminary plat referred to in the contract, the buyer or lessee may not berequired by the seller or lessor to close any earlier than 15 days after thedelivery of the final recorded plat, during which 15‑day period the buyeror lessee may terminate the contract without breach or any further obligationand may receive a refund of all earnest money or prepaid purchase price.
(c) The provisions ofthis section shall not prohibit any owner or its agent from entering intocontracts to sell or lease land by reference to an approved preliminary platfor which a final plat has not been properly approved under the subdivisionordinance or recorded with the register of deeds where the buyer or lessee isany person who has contracted to acquire or lease the land for the purpose ofengaging in the business of construction of residential, commercial, orindustrial buildings on the land, or for the purpose of resale or lease of theland to persons engaged in that kind of business, provided that no conveyanceof that land may occur and no contract to lease it may become effective untilafter the final plat has been properly approved under the subdivision ordinanceand recorded with the register of deeds. (1955, c. 1334, s. 1; 1971, c. 698, s. 1; 1977, c.820, s. 2; 1993, c. 539, s. 1087; 1994, Ex. Sess., c. 24, s. 14(c); 2005‑426,s. 3(a).)