Box Elder County Land Debacle Cont'd

It seems like people are waking up to letters or notices of noncompliance. They made the notices sound so serious, that they make, at first glance, feel the property owner feel guilty they own the land. The county has since updated their letters to be more friendly, perhaps to save them from the on slaught of phone calls and emails.

Speaking of e-mails, I'm starting to get a steady flow of questions from land owners. I want to reiterate that the county attorney's position (at least when I spoke to them), state they consider the property owners of the illegally subdivided parcels as victims, not criminals. They are reviewing actions on how to deal with the original subdividers.

Another question I'm getting is: what am I going to do with my useless land? Here's a typical email I receive below:

"Back in the day, I also bought 15 acres for around ~$320/acre in Box Elder county.

When I got the property tax statement from the county, it said the all the parcels (60 adjacent 1/4 acre plots) was assessed around ~30k.

I was really happy since I paid a fraction for it. What makes me mad though is that the county is saying that I can't do anything with the land (e.g. sell it) but they want me to continue paying the yearly taxes, which is ~$250 a year.

This brings me to a point: Why is the land worth this much if you can't do anything with it or even access it in some cases? You still think its worth holding on to despite that fact we have no choice as of now.

Best Regards,

...

This is an interesting question. What in the world should I do with it now? The fact that it was incorrectly subdivided does not excuse land owners from taxes. In these cases, your options are limited:

1. You lose your property. Don't pay the taxes and your property will be foreclosed.

2. You sell back your property to the original developer.

3. You keep paying taxes and keep the property for novelty [for the heck of it].

4. You wait for Box Elder officials to come up with a solution [court case injunction, etc.].

If you have invested a significant amount of money into this venture (thankfully, I haven't), #1 and #3 aren't good options.

Zoning Department emails me back

The zoning department has finally emailed me. You should read their response, as it may answer some of your questions. The PDF file is available here.

Have more questions?

Feel free to email me at don [at] donsausa.com.

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A land debacle in Box Elder County, Utah

Back in the day, I looked at some investment properties in Box Elder County, UT. At $300/acre, why not? At the very least it was a paper asset. But according to Box Elder County officials, the people that were subdividing the property without permission was comitting a criminal offense. Youch!

They've sent out "notice of noncompliance" to thousands of people, telling them their property was illegaly subdivided. Most of the property buyers bought the land online from Yahoo Auctions, eBay, Overstock, etc.

One of the people that have allegedly subdivided parcels without permission, according to public records, the county, and my own records, was Larry Madsen of 13871 S. 1950 W, Bluffdale, Utah 84065.

I bought land there from Madsen or other developers, what should I do?
You can send an e-mail to the Box Elder officials at codeviolations@boxeldercounty.org. They are looking at options to alleviate this problem. Do not expect a response, since a few thousand people have already e-mailed them.

Is my deed valid?
If the deed was recorded correctly, your deed is valid and you own the property. It's just that the original owner, Madsen and others, didn't ask permission before they sold it.

What's going to happen now?
I spoke to the county attorney's office and they are still looking at their options. They could technically go after the developers and fine them and leave the properties as is, or they could ask developers to take back the properties (assuming you don't want it anymore).

Are there any other things to know?
Most of the folks I know that bought this property knew it was in the middle of nowhere and it had no electricity. It was flagged as recreational property (Madsen appropriately flagged it when he sold me a parcel). So no one really hid this fact. If another developer tried to tell you this was buildable and it wasn't, they could be held liable.

Why did the developers do this?
Well they sell land to make money, but to answer the question why they didn't ask permissions and fill out the proper zoning permits -- probably because they didn't know. I asked Madsen by email on how they are rectifying this and said, "We have contacted an attorney in Box Elder County to help us determine what needs to be done to rectify this problem. We will let you know what we find out and what we are able to do to resolve this issue with the County."

Stay tune, I'll update this post with more info. I'm expecting a call from the county attorney on Tuesday.

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