Legal Question in Real Estate Law in Missouri

Way-layed by Greedy Land Developer

We purchased a building lot in a residential development outside the city limits and built our home, (well within Home Owner's Assoc. rules and specifications). The contract stated the roads would be installed later. (There was a road grater parked on our drive for several months). Other tracts were sold, homes built, also with the understanding that the roads would be put in ''eventually''.

When the land owner was confronted about it and asked to hold up his end of the contract, he signed the property deed over to his (foreign wife), who then declared bankruptcy. We were not notified and only found out when loggers came in that the remaining tracts were sold by the bank at a rock bottom price.

Is there any legal response to this? Are we, as home owners, who all signed contracts in good faith now out in the cold? What's the purpose of buying title insurance and going thru a licensed real estate firm if contracts are not followed through on? Do I have any legal recourse?


Asked on 2/21/07, 10:24 am

2 Answers from Attorneys
Michael R. Nack Michael R. Nack, Attorney at Law

Re: Way-layed by Greedy Land Developer

Believe it or not this same scenario is played out over and over again in the real estate development business. There have been a substantial number of cases in which the homeowners have been sucessful filing suit against the developer. In your case, an attorney would need to review all of the legal documents before providing you with any specific legal advice. Also, your decision to take legal action may be effected by whether or not the developer has any other assets which might be available to satisfy any judgment that you might obtain. If you are in the Eastern half of the state, you may call me to set up a consultation. If you have a case and I can not help you myself for any reason, I would be happy to help you find competent experienced legal representation.

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Answered on 2/21/07, 10:24 pm
Anthony Smith LawSmith

Re: Way-layed by Greedy Land Developer

As you now know, yours' is not a unique predicament. What recorse you have depends upon what the agreements actually say, and who is available as a potential liable party. You may do well to pool your resorces with your similarly situated neighbors. If you wish to get together with some of them and contact me directly, you may.

Good Luck

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Answered on 2/23/07, 2:46 pm


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