Apartment lost lift station parcel to tax deed

Apartment lost lift station parcel to tax deed

Developer · Panama City Beach, FL · Member since 2013 · 130 posts · 88 votes

I own a parcel in Florida via tax deed. On it is the lift station of the adjoining apartments. The parcel was originally developed by the apartment complex as a separate parcel for sewage waste. At some point they abandoned the septic field and stopped paying taxes. I don't think they realized their private lift station was on the parcel. They are refusing to give us access to our parcel, as it is land locked, even though statutes would require them to grant us access through their private road. We offered them the parcel at a very fair rate, which they low-balled. They are also in negotiations to sell the apartments. How big of an issue is it going to be for them since I now own the parcel that their lift station is on? I am also being assessed on my taxes another $30k in value for their lift station.

0Reply
32 views

Most Popular Reply

Keith ThompsonPro Member
Investor · Centreville, VA · Member since 2016 · 109 posts · 65 votes
9y

-Lift Station-  pumps sewage from lower elevation to higher so gravity can then take over. I had to look it up...

1) FL court will grant you an easement, via some route, not necessarily through the apt prop. irrespective of Title Insurance, though you will have to foot the bill. Call RE Atty to get estimate.

2) Apt may choose to build another lift station, but it will be costly. I think the same court would grant reciprocal easement for sewage, out of equity. If the lift station is there, I suspect so is the path to sewage pipe.

3) Assess the value of your property separate from the apt bldg to determine if the court costs are worth it.

Sometimes initiating the suit lights a fire under othrwise reluctant parties and brings them to the table.

Once initiated, the Apt owners may see the value in owning the parcel vs building another lift station plus counter suing you for easement in their favor. Be ready to deal, don't get greedy. Get in, get out, get paid.

I once bought a Townhouse development parcel containing a culdesac, street, parking, common sidewalk & playground. The HOA refused to deal... until we headed to court. It took three years to get paid; yes, it was worth it.

See this reply in the discussion

7 Replies

Jump to latestLatest
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    this is what I love about real estate.. once U think you have heard it all.. a few different cool things happening here.

    1. your thinking you can force an easement.. that is not necessarily true.. especially since you bought without title insurance..   I am going through one right now.. I have title insurance the so the insurance company is dealing with it.. its a full blown lawsuit.. and outcome is not assured.

    2. I suspect worse case scenario they could just build a new lift station on their property

    I have bought tax sale props that had houses half built on them and other things like that.

    once people cool down IE I thought I really had them.. and you probably think the same thing If you can make a few bucks and move on I suspect that would be the thing to do..

    I don't think their sale goes through unless this is addressed of course.

    let us know how you make out.

  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    9y

    @Ryan M. I don't know what a lift station is. However presuming they need it, I think you are in a much stronger position than they are. 

  • Keith ThompsonPro Member
    Investor · Centreville, VA · Member since 2016 · 109 posts · 65 votes
    9y

    -Lift Station-  pumps sewage from lower elevation to higher so gravity can then take over. I had to look it up...

    1) FL court will grant you an easement, via some route, not necessarily through the apt prop. irrespective of Title Insurance, though you will have to foot the bill. Call RE Atty to get estimate.

    2) Apt may choose to build another lift station, but it will be costly. I think the same court would grant reciprocal easement for sewage, out of equity. If the lift station is there, I suspect so is the path to sewage pipe.

    3) Assess the value of your property separate from the apt bldg to determine if the court costs are worth it.

    Sometimes initiating the suit lights a fire under othrwise reluctant parties and brings them to the table.

    Once initiated, the Apt owners may see the value in owning the parcel vs building another lift station plus counter suing you for easement in their favor. Be ready to deal, don't get greedy. Get in, get out, get paid.

    I once bought a Townhouse development parcel containing a culdesac, street, parking, common sidewalk & playground. The HOA refused to deal... until we headed to court. It took three years to get paid; yes, it was worth it.

  • Keith ThompsonPro Member
    Investor · Centreville, VA · Member since 2016 · 109 posts · 65 votes
    9y

    @Ned Carey

    Revised now that I have Internet connection back...

    -Lift Station- I had the same question - what the heck is that...  it pumps sewage from a lower elevation to higher elevation so gravity can then take over. I had to look it up...

    @Ryan M.

    1) FL court will surely grant you an easement to access the property, via some route, not necessarily through the apt prop.  Even though you may think that is the most obvious path, the Court gets to choose.  The width of the easement will also be in the Court's purview - which may not be sufficient to get a large truck or construction equipment through.  I've seen easements only 10'wide - there's a lot that won't fit through that hole.  I doubt that @Jay Hinrichs meant that Title Insurance plays a role in your rights to access, because it does not, it's an operation of property rights equity.  However, without Title Insurance, you will have to foot the bill. BTW, that may have had to foot the bill anyway even with TI since TI often excludes various types of challenges, including known and unknown easement issues (read the contracts). Call a RE Atty to get assessment of prospects and estimate of the cost.

    2) The Apt owner(s) may explore building another lift station (if that is indeed still needed (per septic reference)), but it will be costly. I think the same court might grant reciprocal easement for sewage (if needed), out of equity. Presence of the lift station may indicate a logical path to public sewage pipe (if that.

    3) My reco... Assess the value of your property completely separate from the apt bldg use, to determine if the court costs are worth it.  That's your benchmark.

    Sometimes initiating the suit lights a fire under othrwise reluctant parties and brings them to the table.

    Once initiated, the Apt owners may see the value in owning the parcel vs building another lift station plus counter suing you for easement in their favor. Be ready to deal, don't get greedy. Get in, get out, get paid.

    I once bought a Townhouse development parcel containing a culdesac, street, parking, common sidewalk & playground. The HOA refused to deal... until we headed to court. It took three years to get paid; yes, it was worth it.

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @Keith Thompson  have to correct you.

    one major component of title insurance is insuring access to a public right of way.. other wise you pre liminary title report will state the property is land locked..

    right of way is not a gurantee..  there are ways to sue for a right of way which is what this person would have to do.. courts have latitude to go both ways.. If he had bought with title insurance and title insurance missed the landlock issue title insurance WILL have to foot the bill.. I am going through that right this month with one that Chicago title missed.. the either get me a write of way that I can use to build my 3 homes or they cut me a check for 600k

    They will end up paying  neighbor a sum of money to settle this.. I suspect.

    When you buy at tax sale you have no reps or warrenties.. and a trier of fact may not grant and easement out of necessity.. when they look at the facts.. IE bought at tax sale.. new inherent risks etc.

    But then the apt.. with the lift station.. ( and yes those are for sewer generally and cost anywhere from 50 to 350k I have built a few)...

    so seems to me you have a standoff and it would be in both parties interest to do a mutual swap of right of ways.

  • Developer · Panama City Beach, FL · Member since 2013 · 130 posts · 88 votes
    9y

    Thanks for all the replies. This one could definitely go a number of ways. Although I think what I have is more valuable. Court is not a way I hope it goes.  

    After speaking with the prior owner of my parcel, I'm not sure why the apartment owner let this one go. They each had a 1/2 undivided interest, and he said they seemed unconcerned about the upcoming tax sale. 

    I guess we will find out if anyone on the buyer's side catches it. I wonder if the seller will disclose it. 

  • Investor · Cincinnati, OH · Member since 2013 · 2k+ posts · 1k+ votes
    9y

    @Ryan M. this is fascinating and please do keep us posted on what happens. Best of luck getting something worked out. 

Join the conversationCreate a free account to reply, vote on answers and follow this thread.