THOMPSON, Presiding Judge.
Kilgore Development, Inc. ("Kilgore"), appeals from the trial court's judgment determining that Woodland Place, LLC ("Woodland Place"), was entitled to money held in escrow pursuant to a contract to purchase lots in a proposed subdivision. Kilgore appealed to the supreme court which transferred the case to this court pursuant to § 12-2-7(6), Ala.Code 1975.
Woodland Place purchased a parcel of land in Tuscaloosa County with the intention of developing a subdivision on the land. On October 25, 2005, Woodland Place entered into a "Lot Purchase Agreement" ("the contract") with Kilgore, pursuant to which Kilgore agreed to purchase 44 lots upon which to construct single-family houses in the subdivision. Kilgore deposited $40,000
At the time that Kilgore and Woodland Place entered into the contract, no map or plat of the proposed subdivision had been recorded or even approved by the appropriate authorities. The contract provided that if Woodland Place had not recorded the final plat of the subdivision by June 30, 2006, "then, at [Kilgore]'s sole option, this Agreement may be terminated and the Deposit returned to [Kilgore]."
The contract also provided for the cure of any defaults as follows:
On February 23, 2007, almost eight months after the date the contract called for recordation of the subdivision plat, Kilgore sent a letter to Woodland Place stating that Kilgore was exercising its option to terminate the contract because the plat had not been recorded. Kilgore demanded the return of the money being held in escrow. The appropriate Tuscaloosa County authorities approved the final plat on March 14, 2007. The next day, March 15, 2007, the 21st day after Kilgore had notified Woodland Place that it intended to terminate the contract, the plat was recorded in the Tuscaloosa County Probate Court.
Kilgore contended that Woodland Place had failed to timely cure its failure to record the plat and that, therefore, it was entitled to the return of the money being held in escrow. Woodland Place asserted that recordation was completed within the 30-day grace period allowed by the contract
After a bench trial in which both documentary and ore tenus evidence were presented, the trial court found that the "subdivision control statutes," §§ 11-52-30 et seq., Ala.Code 1975, which, among other things, bar the sale of lots in a subdivision until recordation of the final approved plat, did not invalidate the contract between Kilgore and Woodland Place. The trial court also found that Woodland Place had been in default because it had failed to record the subdivision plat by the time specified by the contract. The court also found, however, that Woodland Place had cured that default by recording the plat on March 15, 2007. Specifically, the court determined, "[r]ecordation was not possible within 15 days" of Kilgore's notice of termination of the contract "since the final plat was not approved by the required authorities until March 14, 2007." The court found that because the plat was recorded within the 30-day grace period provided by the contract, Woodland Place had cured the default, and it was entitled to the escrow money.
Kilgore contends that the trial court erred by enforcing the contract because, it says, the contract was illegal, and thus void, under the "subdivision control statutes." The first of the statutes at issue, § 11-52-30(b), Ala.Code 1975,
Section 11-52-33, the statute setting forth the penalty for violating § 11-52-30, provides as follows:
It has long been the law in Alabama that when a contract is made in violation of a statute, that contract is generally void and unenforceable.
Johnson Mobile Homes of Alabama, Inc. v. Hathcock, 855 So.2d 1064, 1069 (Ala. 2003).
A comparison between a regulatory statute and a statute created for revenue purposes is helpful to our analysis. Our supreme court held that §§ 34-8-1 et seq., Ala.Code 1975, which related to qualifications and licensing requirements for general contractors, were enacted "to protect the public against incompetent contractors for certain-type structures, and also to better assure properly constructed structures which [are] free from defects and dangers to the public." Cooper v. Johnston, 283 Ala. 565, 567, 219 So.2d 392, 394 (1969). On the other hand, our supreme court has determined that § 40-12-84, Ala.Code 1975, which requires a construction contractor to obtain a business license from the probate judge in the county where the contractor has his principal office is not a regulatory statute designed to protect the public from incompetent contractors, but is merely a statute designed to raise revenue. Haskew v. Green, 571 So.2d 1029 (Ala. 1990).
In passing the initial "subdivision control statutes," which are predecessors to the current statutes, the Alabama Legislature
Kilgore argues that § 11-52-33 prohibits the sale or the negotiation for the sale of any property in a proposed subdivision before the subdivision plat has been approved pursuant to § 11-52-30 and recorded in the proper probate court. Kilgore asserts that because the proposed subdivision plat had not been approved and recorded at the time it entered into the contract with Woodland Place to purchase certain enumerated lots within the subdivision, the contract was illegal and, thus, void.
On the other hand, Woodland Place argues that §§ 11-52-30 and -33 apply only to those situations in which a developer sells or negotiates to sell a lot within a proposed subdivision to an individual; it contends that the statutes do not apply to situations like the instant case, in which the developer enters into a contract to sell specific lots to a second developer on which to build houses within the proposed subdivision.
The resolution of this dispute depends on the meaning of those statutes; however, there are no opinions interpreting §§ 11-52-30 and -33. Therefore, we turn to the rules of statutory construction to discern their meanings.
Boone v. Birmingham Bd. of Educ., 45 So.3d 757, 761 (Ala.Civ.App.2008).
Gartman v. Limestone County Bd. of Educ., 939 So.2d 926, 929 (Ala.Civ.App. 2006). Thus, we construe § 11-52-30(b) and § 11-52-33 together.
The statutes at issue are straightforward. Section 11-52-30(b) provides that no subdivision plat may be recorded, "and no property shall be sold referenced to such map or plat," until the county engineer has determined that the subdivision complies with the requirements established by the county commission. Section 11-52-33 sets forth the penalty for "[w]hoever, being the owner or agent of the owner of any land located within a subdivision, transfers or sells or agrees to sell or negotiates to sell any land by reference to or exhibition of or by other use of a plat" before that plat has been approved and recorded. There is simply no language in either § 11-52-30 or § 11-52-33 that would limit their application only to individuals. The plain language of the statutes provide that the owner of the property to be subdivided cannot negotiate the sale of that property "by reference to or exhibition of or by other use of a plat of a subdivision before such plat has been approved by the planning commission and recorded or filed" in the appropriate probate court. No exceptions to those requirements are included in either statute at issue.
In this case, the contract between Kilgore and Woodland Place provided that Kilgore would purchase 44 lots in the proposed subdivision, "more particularly described on the unrecorded map or plat" of the subdivision. A copy of the plat, which indicated the proposed lots, was attached to the contract as an exhibit. The contract was executed on October 28, 2005. The plat was approved on March 14, 2007, and recorded the next day. The undisputed evidence indicates that Woodland Place negotiated the sale of lots in a proposed subdivision almost 18 months before the plat of the subdivision was approved and recorded in the Tuscaloosa County Probate Court. Because the contract was made in violation of §§ 11-52-30(b) and -33, it is void, and Kilgore is entitled to rescind the contract. Accordingly, the trial court erred in awarding the money that Kilgore had placed in escrow to Woodland Place.
For the reasons stated above, the judgment of the trial court is reversed, and the cause is remanded for the trial court to enter a judgment consistent with this opinion.
REVERSED AND REMANDED.
PITTMAN, BRYAN, THOMAS, and MOORE, JJ., concur.