Generally, residential subdivisions and planned communities must be approved by a city or county zoning authority, depending upon the location of the property. When subdivision approval is required, and preliminary plat approval has been obtained, a developer may then offer lots for sale and enter into contracts so long as the contracts:
(1) incorporate a copy of the preliminary plat and obligate the owner to deliver a copy of the recorded plat to the buyer before closing;
(2) plainly and conspicuously notify the buyer that final subdivision approval has not been obtained, that the city or county may not grant approval, that changes between the preliminary and final plat are possible and that the contract can be terminated without the buyer being in breach if the final plat is materially different from the preliminary plat;
(3) provide that even if the final approved plat is not materially different from the preliminary plat, the buyer may not be required to close earlier than five days after delivery of a copy of the final recorded plat; and
(4) provide that if the final approved plat is materially different from the preliminary plat, the buyer may not be required to close any earlier than 15 days after the delivery of the final recorded plat, and during that 15-day period, may terminate the contract and receive a refund of the earnest money or prepaid purchase price, without breach or further obligation.
Typically, after plat approval and inspection of construction, the local government has no further role in administering the homeowner association except to assure compliance with local ordinances or state laws (for example, a Health Department permit for a swimming pool operation).