All Forum Posts by: Steve McGovern

@Mike Geier I'm going to get a little more specific here. If this is "really" a Lease (as opposed to a License), and if you are going to record anything (like a Memorandum of Lease) then the Owner either MUST sign the Lease and MOL -- OR the owner must record some delegation of authority documents showing that the person signing on owner's behalf has the authority to do so. At the end of the day, you ARE actually disposing of a real estate interest when you lease a property to some tenant. Namely, that interest is Use and Occupancy, together with quiet enjoyment in most jurisdictions. There may be other interests involved too-- those of use of common areas, parking, etc. However, in practice, many people don't do this. Many owners do not record MOLs, or do anything if the sort. It's perfectly fine to have your PM sign on your behalf, if the Management Agreement, for example, contains that delegation of authority, but you dont want to display that entire contract to someone who inquires-- and it WOULD be within their rights to inquire, after all. Imagine for a second that you are a new tenant in a place, and an owner you never met enters 'your' unit to assert that your lease is invalid because he didn't give the PM the authority to sign leases and he's about to sell to a REIT(!) So, it's up to you, but if it's a long term lease on a retail space at grade, you are going to want to have your delegations lined up and you're going to want to record a notice of this relationship. You're also going to want to be prepared to display the same to a savvy tenant who wonders about your actual relationship with "Bob's Property Management Corp, Inc, LLC, LTD." Make sure that the PM knows its role and make sure that you agree with that role and that you've properly documented that role in some appropriate manner. Hope that helps.

@Avery Heilbron welcome!

@Tirzo Quintero I'm a licensed Broker in Mass and I can tell you that this practice is absolutely illegal here. You could offer to trade the house for a take out menu from a closed Chinese restaurant, and I am OBLIGATED to bring it to the Seller for the Seller's review. I think a simple web search will tell you whether this is similarly illegal in NJ. Good luck!

Yup.  Plenty.  Both on the 'research' side and on the 'ongoing maintenance' side.  This is quite common in tighter suburban, and urban areas.  

Do you HAVE the Easement?   Did you get it from the Atty, Title Co, or whomever-- or have you not quite yet started the legal DD?  

Unfortunately, MANY of these were initially done on a handshake and then memorialized later. Others, you may find that the Developer tossed them into the site plan (esp during the 20's, 30s as cars became commonplace.)  In these cases, maintenance was rarely contemplated, but newer drafts will usually do so, if a proper Atty or Title Co. was involved.  

-- one thing to take out of your head-- for MOST easements, 'whether or not it was paid for' is entirely irrelevant to you today.  It just doesn't matter any more.  If you also need the 20%, then you don't have a driveway without them, same as they don't have one without you. Plus, your predecessors agreed... and that's that.  
 

One exception to that last statement is an Easement in Gross-- because it runs to the party NOT with the land. If you find that it's an Easement in Gross, then you can maybe charge a new party for the continued use of the access way. Consult an atty.  

No matter what, you need to get your hands on that doc.  if you're ADAMANT that there be an ongoing maintenance agreement, you can make your purchase contingent upon the Seller acquiring it from the neighbor, but don't be surprised if you lose your purchase over a move like that. 

Hope that helps. 

Steve

Interesting points made here.  I used to do title work nationwide for infrastructure companies.   

Keep in mind (1) the "type" of Deed is often chosen based on geography.  For example, here in Eastern and Central Mass,  a Quitclaim Deed is basically the ONLY Deed.  You'll never find a Boston Owner grant a Warranty Deed**.  You can find some Warranty Deeds still floating around Western Mass, but it's not common by any means.   That may also be in-part for the following reason: 

(2) You can never GRANT better covenants than you received.   If you received a Warranty Deed, then you can grant via a Warranty Deed, a Special Warranty Deed, a B&S Deed, or a Quitclaim Deed.   However, if you received Title via a Quitclaim, then you can never grant a Warranty Deed to your future buyers... because the chain on that warranty was already broken prior to your acquisition.   

Before you reject the form of Deed you're being offered out of hand, see what Deed was granted to the Seller.    

** But we also offer the Torrens System in Mass.  For properties in that System., (AKA Registered Land, AKA "land court transactions")  the State certifies Title to your property...and can do so, despite the fact that you acquired via Quitclaim.    It's not in-favor now, but lots of properties in Mass are Registered Land, and you can still put a new property into the system, if you wish.  

The Statement , "All Real Estate is Local" goes for forms of transactional documents, too.  

PS, sorry, I'm on my cell and I can't backtrack to see your questions without sending first. Municipal Building Inspectors are in the field every day finding issues with property in their cities. Most transactional inspectors, including HUD inspectors only have a certain area of expertise-- they are not building inspectors in the same way or Code Enforcement Officers. Their job is to put you in an educated position to make a decision or transaction. Period. On the other hand, the muni's responsibility is to make sure its residents are safe. These are two VERY different Interests. The burden of proof is much higher for the BI or CEO. Even if you decide to fight HUD *(initial reaction: crazy), your best path to future success on this property is to present the Muni with the idea that you WANT to make the property safe and whole, one way or the other. Be fully cooperative. they can --and sometimes are happy to-- make your life miserable. Be cooperative. Your solid construction attorney (yet to be determined) is the one who can negotiate with them for certain improvements above others, and make sure the city isn't being overly demanding from the point of view of the IBC/IRC plus the Muni's own amendments to those regs. You simply need to remain cooperative.

ok, you're in my area. Did you have a closing attorney you trusted? (not likely under the circumstances you've painted) Not sure what anyone can do for you at this point, but certain individuals here may be able to help you find the money to renovate properly @Ann Bellamy ? I come from a legal background and know a couple of decent counselors who you can run this by, and I'd be happy to refer a couple with justifications for why (x) attorney is better than (y) in this circumstance. Bottom line: you definitely need an attorney, but you're no longer in the realm of "residential real estate attorney." You need a construction/building code specialist. There are a couple that could help you in your reasonable area. PM me.

state? city or metro area?

Hey, Blake: 

Congrats on your endeavors.  My take:  ALWAYS find an Agent to represent your interests, especially when new at any Asset class.   Not sure about CO regs, but in Mass., any  Broker represents a Seller/Lessor BY LAW, unless & until a Buyer/tenant explicitly asks the Broker to be his/her agent, and the broker accepts.  Until that moment, the Broker owed all loyalty to the Seller/Lessor.  Even if you called him/her he still represents the seller until you say the magic words.  

I don't know about you, but I don't want the person I found, vetted, "hired," and asked to help me look over/through/at property representing the person I'm going to have to negotiate with.  

...and that Seller's Agent you're thinking of calling by yourself? Yeah, they'll get the entire commission for "not acting like your Agent" and for owing all fiduciary duty to their client.  

If for no other reason than to act as a check/ balance, get an Agent and make sure that you say the right words so  their legal duty lies with you.  

My $0.02.  

@Daniel Ortiz  Daniel,  the equivalents of the communities that Charlie listed in your (our) area are  Lowell, Lawrence, Methuen, Haverhill... and in my opinion, portions of Dracut, Billerica, and Pelham, NH.

PS-- @Charlie MacPherson, nice analysis.