What is the consequence of transferring lots without final plat approval?

Transferring lots without final plat approval can lead to severe consequences, primarily because it violates state and local regulations regarding land development. When the final plat is not approved, the lots may not have met the necessary legal requirements for sale, which can compromise the integrity of the transaction.

When a lot is sold or transferred before receiving the final plat approval, authorities can issue cease and desist orders. This means that the seller is halted from proceeding with any more transactions regarding the lots until compliance with the necessary regulations is achieved. This serves as a protective measure to ensure that all developments meet the necessary standards and legal requirements established by zoning laws, land use regulations, and other municipal rules.

Cease and desist orders are critical because they prevent further legal complications and protect buyers from engaging in transactions that could be voided or cause them future issues. The legal framework is designed to uphold proper development practices and minimize risks associated with unregulated land sales.