Sunday, October 12, 2008

The Grey Rock at Lake Lure Property Owners' Lawsuit

On August 26, 2008 a federal class action lawsuit was filed against the Orlando-based developer, Land Resource, LLC. The group of Grey Rock at Lake Lure land owners filing suit claim violations of federal and state laws. Plaintiffs allege that Land Resource and a number of their affiliates violated the Interstate Land Sales Full Disclosure Act and Florida and North Carolina Unfair and Deceptive Trade Practices.

The following information was extracted from the filing:
Upon information and belief, LAND RESOURCE is the parent company of subsidiaries that collectively form the company which is a close network of investors located in various portions of the world that act as a single enterprise offering customers a wide range of real estate properties and a choice of locale in which to purchase these properties.
The Land Resource, LLC Fact Sheet states that the company has 19 projects developed or under development. Land Resource, LLC, currently headquartered in Orlando, Florida was founded by J. Robert Ward in 1997. The company was based in Atlanta until mid 2007.

Projects under development are:
Bridge Pointe at Jekyll Sound-Waverly, Georgia
Cumberland Harbour-St. Mary’s Georgia
The Docks at Caney Creek-Kingston, Tennessee
Grey Rock at Lake Lure-Lake Lure, North Carolina
Laird Pointe-Panama City, Florida
Roaring River-Fayetteville, West Virginia
Still Water Coves-Lincolnton, Georgia
The Villages at Norris Lake-LaFollette, Tennessee
Wild Ridges-Marion, North Carolina
The websites for these projects have been inoperable since July.

Land Resource purchased the 4,000 acre Grey Rock at Lake Lure, Rutherford County, North Carolina property in 2003. Buffalo Creek is the entity which held title to the Grey Rock lots before they were sold to plaintiffs.

Plaintiffs state that their lots (priced from $75,000 to $700,000) are virtually worthless due to the company’s failure to complete promised infrastructure, such as roads, water, and sewer service. The affected property owners allege that “the wells that have been drilled have a water flow that is insufficient to sustain a single house.”

Other Plaintiff complaints:…Land Resource agents used “insider sales” to artificially inflate the comparables for subsequent appraisals of the lots in the subdivision… they misrepresented the viability and success of the company’s other projects in order to make plaintiffs think that their investment in Grey Rock was secure.

The plaintiffs also allege that Land Resource violated sections of the Interstate Land Sales Full Disclosure Act by failing to provide material information in the Grey Rock at Lake Lure Property Report. They cite omission of the following:
A. The addresses of the lien holders
B. Legal description of the development
C. A map of the property
D. The range of prices for the units covered by the report
An unrelated federal lawsuit was filed against Land Resource et al on September 12, 2008 in North Carolina Western District Court.

2 comments:

Diane said...

November 25, 2008. Roaring River, another Land Resource community located in Fayetteville, West Virginia, needs a contact name for your owners group to be able to explore common needs. Please contact me at dianehodges46@gmail.com.

Cumberland Harbour said...

I must really commend you for your well written post on real estate. The article encompasses all the details that one would look for in a real estate related article. Keep doing the good work because one would really love to read more from you.