HB474 Alabama 2014 Session

Summary

Primary Sponsor

Steve McMillan

Republican

Co-Sponsors

Harry ShiverAlan BakerJoe Faust

Session

Regular Session 2014

Title

Subdivisions, contracts to pre-sale lots prior to recording plat, laws applicable to counties and municipalities amended and made consistent, Secs. 11-19-1, 11-19-15, 11-24-1, 11-24-2, 11-24-3, 11-52-1, 11-52-33 am'd.

Summary

HB474 lets developers pre-sell or reserve lots in planned subdivisions without applying normal subdivision laws, but requires plat approval and recording before actually conveying a lot to a buyer.

What This Bill Does

If enacted, county and municipal subdivision laws would not apply to contracts to purchase or sell lots that are planned for development before the subdivision plat is recorded. However, the subdivision plat must be approved and recorded before a lot can be conveyed to a third party. The bill also standardizes definitions and procedural rules across county and municipal subdivision laws and preserves regulatory tools like permits, bonds, notices, and penalties to enforce development standards.

Who It Affects

• Developers and landowners planning subdivisions: can enter into contracts to reserve or sell lots before plat approval, with subdivision-law requirements largely not applying to those contracts.
• Prospective buyers and buyers' agents: may participate in reservation or purchase contracts for lots within proposed subdivisions before plat approval, but actual transfer of title would require plat approval and recording.

Key Provisions

• Laws regulating subdivisions would not apply to contracts to purchase or sell lots for planned developments before the recording of an approved plat, with conveyance still requiring plat approval and recording.
• Approval and recording of the subdivision plat are required before the actual sale or transfer of any lots to the public; pre-approval reservations or sales are allowed.
• The act amends Sections 11-19-1, 11-19-15, 11-24-1, 11-24-2, 11-24-3, 11-52-1, and 11-52-33 to align definitions and procedures among county and municipal subdivision laws.
• The bill authorizes permits to develop, bonding, notices to adjoining landowners and utilities, permit fees, and penalties (up to $1,000 per lot) with enforcement mechanisms to ensure compliance.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Property, Real and Personal