Tricky real estate mess

[Bjorn]

Fact Pattern
"Mom & Dad" invested 300k into a real estate development to go into a specific subdivision. Operator of real estate company decided not to go ahead with the subdivision due to soft market conditions. He took the 300k and did something else with it and refuses to return the money.

Developer has offered to give them land with a value of 900k. The reason why is it is not valuable to the developer because it is not buildable land. "Mom & Dad" could donate this land to the nature preserve and get a tax deduction for charity.

Clearly they would prefer the money back but in case that does not happen what are the pit falls of this possible scenario?

Mahalo
Bjorn

[taxmandan]

Getting clear title to the land?

Who says it's worth 900K? I would advise them to get good legal assistance with any proposed settlement, sounds like the developer plays fast and loose with others' money.

[ED SMITH]

Tell the developer to sell the $900K land and give back the $300K. If the land is not buildable I doubt it is worth $90K. This guy is a crook and mom and dad can spend another $100K+ on attorney's fees and still won't get anything. Are they the only ones taken, or are there others?