Breach, mortgaging, effect of breach, etc

(a) Effect of breach of restriction. Except as otherwise provided in this chapter any sale or attempted sale, contract, or conveyance contrary to section 206-10 shall be void. Any use contrary to section 206-10 may be enjoined by the State, the board of land and natural resources or an owner or owners of the residence lots within the same development project. Except as otherwise provided in this chapter, if a sale, contract, or conveyance contrary to section 206-10 is attempted, or a use contrary to section 206-10 is not voluntarily remedied or is not or cannot be remedied by injunction, or a building is not erected in accordance with section 206-10(d), the lot affected shall be forfeited and the title revested in the State upon suit by the State establishing any of the foregoing. Upon the forfeiture, the board shall sell the lot at public auction, or at private sale, for the current market value, to a purchaser eligible to purchase from the board in the first instance, and the original purchaser shall be reimbursed insofar as possible, after deduction of costs of resale. Provided that in the event title to any lot passes to any obligee, or to any agency of the United States government, pursuant to the terms of any insurance or guarantee of mortgage loss by such agency, no forfeiture or revesting in the board shall be enforced. (b) Mortgage of residence lots. Nothing herein shall prevent the conveyance of a residence lot by way of mortgage to any person or corporation. (c) Nothing in this chapter shall be construed as limiting the power of the board to vest in an obligee the right, in the event of a default by the: (1) Board or by the purchaser, to take possession of a development project or lot or cause the appointment of a receiver thereof, free from all the restrictions imposed by this chapter; or (2) Purchaser, to acquire title to a lot or the property mortgaged by the purchaser free from all the restrictions imposed by this chapter.