May I sell lots or advertise lots for sale before I obtain approval of a plat of the subdivision?
Various laws prohibit selling or even advertising unplatted lots by the subdivider (that is, the person who created the lots). This includes a written promise to “reserve” a lot for later sale. Under Property Code 12.002, a plat must be approved and recorded before you may use a subdivision lot’s description in a deed or a contract for deed delivered to the purchaser. For a residential subdivision outside city limits, Subchapter B of Chapter 232, Local Govt. Code, prohibits selling or even offering to sell a lot until the plat has been properly approved. The Model Subdivision Rules also forbid conveyance of a lot until the plat has been legally approved and recorded.
