Developers settle Rochester claims with AG

State alleged consumer protection violations in land sales

The developers of a subdivision in Rochester have resolved allegations by the Attorney General’s Office that they violated state consumer protection laws.

The AG’s Consumer Protection and Antitrust Bureau announced last week that it has entered into an assurance of discontinuance with Arcus Homes Inc., Vilicus Homes Inc., J&L Terra Holdings Inc., JP Ventures Construction LLC and Bonza Builders LLC.

The agreement resolves allegations that the companies violated both the state’s Land Sales Full Disclosure Act and the Consumer Protection Act by entering into binding purchase and sale agreements for lots located in the Norway Plains subdivision on Norway Plains Road in Rochester without informing the buyers that they had a five-day right of cancellation of the agreements and by selling subdivision lots to individual homebuyers before registering with the Consumer Protection Bureau.

The bureau has entered into a separate assurance of discontinuance with NP Rochester Associates LLC to resolve allegations that it transferred Norway Plains subdivision lots to other companies prior to receiving required statutory exemptions.

In the agreements, Arcus, Vilicus, J&L Terra, JP Ventures and Bonza jointly pay $29,000 in lieu of a civil penalty and reimburse the state for the costs of its investigation, and NP Rochester will pay $6,000 toward the cost of the investigation.

In addition, the six developers must comply with the Land Sales Full Disclosure Act and have agreed that they will not offer or dispose of any lot in the subdivision, or any other subdivision required to be registered or exempted by the attorney general, unless they have complied with state law.