Argyll and Bute Council has already issued a Temporary Stop Notice on the plot at Bellanoch Brae which has halted anymore work being carried out but angry residents are waiting to see what happens next.
The plot is being marketed by Glasgow-based real estate auctioneer Prime Property at a guide price of £12,500 pitching it as "perfect for those who love the outdoor life" and suggesting it may "lend itself well for chalets or glamping pods" being in a "fantastic" location close to Bellanoch Marina and Tayvallich.
North Knapdale Community Council had it on the agenda this month, giving concerned residents an update.
Although Argyll and Bute Council can not stop the land from being sold, its planning enforcement officer has been in discussions with the land owner who leased the site to the person who carried out the work, carving into the raised bank and clearing it back to bare earth.
A For Auction signpost at the plot scrawled with the word "vandalism" has been removed.
The owner has been told about the enforcement liability on him, according to an email passed to the community council via Councillor Dougie Philand.
The email said it had been agreed no further notices will be served until after Friday May 26 and that the land owner had implied they intended to put in a planning application by then.
If no application is submitted by that date it is "highly likely" an enforcement notice will be issued for the ground, to be reinstated to its original condition .
Cameron MacInnes from Fort William, who identified himself as the owner of the plot and said it was him who carried out the work, said he was not auctioning off the land for it to be developed for housing.
Mr MacInnes, who deals in machinery and "bought" the plot six months ago, said he had sorted out drainage and planted grass seeds so it would soon be "lovely and green" rather than boggy.
"It's up to any buyer what they do with it but I'm not selling it for houses to be developed.
"It's about life-style change, getting a break from the city or big town and coming out here to live simply and to enjoy the open space and what the area has to offer."
The plot, extending to about 0.34 acres, failed to sell at the monthly auction in May but is now listed to go under virtual hammer again on June 8.
Prime Property Auction does point out on its website that Plot 4 Oyster Catcher is being offered without planning permission.
North Knapdale Community Council secretary Richard Stein said: "People are outraged what has happened to this piece of scenic land that needs protection.
"They are disappointed that it won't be restored as quickly as they would like but are pleased that Argyll and Bute Council are doing what they can to make that happen."
Mr Stein said concerns were also raised at the community council meeting that "people could be misled" by adverts selling the site.
"The worry is that some nice but naive person out there could be misled into buying the land thinking they are going to be able to pitch a tent or do something wonderful with the land only to find out too late that the council will not allow them to do that," he said.
A council spokesperson said: "The site is subject to a current planning enforcement investigation. The council served a Temporary Stop Notice following a number of complaints about unauthorised works at the site and the condition of the site, and the requirement for any further intervention remains under consideration."
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