Real Estate Lawyer Alabama State Supreme Court Significant Decision

Real estate lawyers and people impacted by real estate law should take note of a recent decision by the Alabama State Supreme Court. On August 17th, 2012 in Limestone Creek Developers, LLC v.Trapp, No.1110838 (Ala., August 17, 2012), the court held that a contract between the developer and an investor was void. The investor bought a number of lots in the subdivision, and the contract was void because the parties entered into the contract before the county had approved the subdivision.  According to Alabama Code section 11-24-2(a) sales or offers of lots to the public in a future subdivision must not be made until the county approves the subdivision.  The developer in this case argued he was not a member of the “public” as defined by this code section.  The county in a resolution had prohibited all sales before approval for the purpose of creating, establishing or modifying a subdivision, and the Court held the contract violated this provision.

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