Published: 10-22-08
AUSTIN – Texas Attorney General Greg Abbott today filed an enforcement action against a Nevada-based online real estate speculator who unlawfully offered to sell land in West Texas. According to documents filed with the Travis County district court Brian F. Quilty failed to file required plats in local county offices before subdividing and selling lots in rural Hudspeth County.
Quilty solicits prospective land buyers via his Web site – myland4sale.com. The two large subdivisions at the center of this enforcement action are Bonita Vista and Eastern Hills Unit 2. Bonita Vista is situated off Interstate 10 near the El Paso County line and Eastern Hills Unit 2 lies west of Farm-to-Market Road 1111 about 17 miles north of Sierra Blanca.
According to state investigators Quilty unlawfully subdivided both tracts into approximately 3000 residential lots. Under state colonia prevention laws Quilty should have obtained plat approval from the Hudspeth County Commissioners Court before subdividing the property. Because he failed to do so the state charged him with violating the Local Government Code.
In Texas residential subdivisions near the U.S.-Mexico border that lack adequate water or wastewater services are commonly referred to as colonias. Most colonias lie outside city limits or in isolated areas of a county and lack basic infrastructure.
The defendant is also charged with failing to financially guarantee that state-approved water and sewer services would be installed on the subdivided property. Under Texas law residential developers in counties within 50 miles of the Texas-Mexico border must either install required water and sewer infrastructure or post financial assurance to fund the installation.
The state’s enforcement action seeks an injunction compelling Quilty to comply with anti-colonia laws. The state seeks an order requiring the defendant to file proper plats with the county and install fully compliant water and sewer systems. In the alternative the state requests that the defendant provide full refunds to each lot purchaser. The Attorney General also seeks civil penalties of up to $15000 for each lot conveyed in violation of the law.
In 1995 the Texas Legislature strengthened state law to prevent colonias from being established. The new laws enhanced platting selling and utilities requirements for residential land sales outside city limits in any county within 50 miles of the Texas-Mexico border. The laws also required that residential subdivision developers either install water and sewer service facilities or provide a financial guarantee to cover the utilities’ cost if the installation is not completed by a promised date. Local officials will not approve the subdivision until that infrastructure is created or the required bond is paid.
Before purchasing residential property outside the city limits border-area home buyers should check with county officials to determine whether the property was legally subdivided and whether the developer has made the necessary arrangements to supply water and wastewater infrastructure. Developers that violate Texas platting laws are subject to civil penalties of up to $15000 per lot.
Consumers can also file complaints with the Attorney General against developers or sellers who fail to provide water and wastewater services or who subdivide land without first obtaining necessary county approval. Complaints can be filed on the Attorney General’s Web site or by calling (800) 252-8011.
