A Florida-based developer will be required to uphold its end of a road maintenance agreement following actions by a federal regulator.
The Consumer Financial Protection Bureau (CFPB) took action against International Land Consultants for misrepresenting that it would maintain the roads in the development until they were taken over by the county.
The company, and several associated individuals, developed and sold lots in Hawks Bluff, a subdivision in Tennessee between 2004 and 2008. The company violated the Interstate Land Sales Disclosure Act by, among other things, misrepresenting in marketing materials and Housing and Urban Development-registered Property Reports that they would maintain the roads until they were accepted by Van Buren County, Tennessee. In fact, the roads have not been maintained, and have not been accepted by the county.
The company and individuals have admitted liability for their conduct.
Under the terms of today's order, they will be required to repair certain roads in the development to the CFPB's satisfaction and consistent with an engineering report to be prepared by an independent consultant.
A copy of the order can be found here.