In the 1970’s husband and wife purchase an 80’ by 136’ lot with a house. They have 6 kids. In late 1990’s husband and wife separate but never divorce. In 2002 husband and girl friend purchase empty lot next door which also wraps around to the back of the lot with the house? Combined both lots would be rectangle shaped lot 139’ by 300’. Girl friend has 3 kids by a previous marriage.
Fast forward to 2013, husband, wife and girl friend are all deceased so we are dealing with 6 heirs for the original lot and house and 9 heirs for the lot purchased in 2002. All 9 heirs are in agreement to sell both lots to the same person but the buyer’s bank is insistent on combining both lots into one.
I have never been asked to combine two lots with different owners, do you see a problem?
Nope, so long as all agree, the plan won't become effective until used in a conveyance. The plan does nothing by itself.
Sure couldn't do it here
>
> ... do you see a problem?
In my neck of the woods, 2 separate lots are worth more than the original whole lot before division. I.e. the idea of combining the 2 could well be cause for a loss of overall valuation.
I'd find another bank. One that understands the value of money. I see no cause for combining unless the separate undeveloped lot is non-conforming or if there is a title issue.
It all needs to get under one ownership first.
The 6 heirs convey their interests in the first lot to the prospective buyer.
The 9 heirs convey their interests in the second lot to the prospective buyer.
This can all be done just by by deed I would think.
Once under the same ownership, the owner could re-plat it, or petition to have it deemed a zoning lot (if their local zoning allows that) which would negate the side lot requirements on the common line and make it one buildable parcel.
At least that's the way I would approach it here.
Not a problem here, it would require more signatures required on the same document.
What I would worry about is what happens if one or more of the parties should change their minds. Getting it "uncombined" could become a real problem.
Who is your client: All 9 heirs?
This is a job I would want a contract with a carefully worded "scope of work" and would want paid upfront.
Impossible
> ..... All 9 heirs are in agreement ....
simply impossible, I tell you. 😉
Like your solution, the pitfalls is the continued goodwill between the heirs. The sales agreement would need to define the split and the money placed in escrow to be dispersed at closing. Odds are against all hears remaining in agreement for long.
jud
Impossible
Plat will be recorded only if all nine sign the deed and yes I have been paid prior to doing any work.
The 6 heirs convey their interests in the first lot to the prospective buyer.
The 9 heirs convey their interests in the second lot to the prospective buyer.
this can't happen unless a plat is done combining both lots.
Impossible
I was hoping for a chuckle not trying to call you a liar. No offense intended.
Here in Mass, if the lots are "pre-existing...non-conforming lots" held in separate ownership, then they remain valid building lots under zoning. When you combine them into one ownership they are then Merged under zoning as one lot. Furthermore, if you modify a pre-existing non-conforming lot, you run the risk of losing the Grandfathering of the zoning for that lot.
Like Foggy said, here you could show the lots combined and then have the deeds resolve the ownership. It would all take place simultaneously.
Impossible
"this can't happen unless a plat is done combining both lots."
Are you saying that two independent property owners could not sell their individual lots to a single buyer without combining the properties??? I'm missing something here.
Not allowed here - both parcels must have the exact same owner(s) first.
No Matter Who Owns Each Lot
The deed of sale for each lot can include a clause requiring it to be combined with the other lot.
If the next owner does, for some reason, not acquire both lots, at any time, the clause is void.
You can survey both lots on a single map listing appropriate owners and predescessors. You can then include a combined tract area, but make not claim as to the overall tract ownership.
The surveyor's job is done. The transfer and merger is the attorney's job.
More complicated than the survey is how the money for the lot with house will be split 6 ways and the vacant lot money split 9 ways. Again that is the attorney's job.
Paul in PA
This is impossible to answer for those of us that don't work in your city, county and State.
In my work area each municipality and county has different rules regarding situations like this. First stop would be the planning department for me and be sure to get whatever information you obtain in writing so they can't go back or forget what they told you in the future.
yes and no, go through MGL 40a, section 6, paragraph 4 as there are a few exceptions to the granfathering of a pre-existing, non-confoming lot.
it should be up to the attorney, but why wouldn't the two lots be conveyed separately?
Because you are calling them heirs instead of devisees, I assume there is no will. So, the bank is worried about a claim on the original house by the girlfriends 3 kids sometime after a sale that does not have their signatures on it. They could later make a claim based on a number of differing legal theories. What they really want is to get an acknowledgement that all 9 have an interest in both properties and are signing away their interests in both. Unfortunately, to do that the parcels may have to be combined, or even if not, the parcels may be considered to have come under common ownership and so are combined by law, which the bank does not want to come as a surprise later either.
To add value to your service you could determine if they are both complying lots, in which case it shouldn't be necessary to combine them. If they are not, then the banks solution is correct and you can explain it to the clients.
I'm not sure I explained that correctly as it's late, but the bank has a legitimate concern.
Impossible
This should not be that difficult to accomplish. If there is a lender, then there is a title company involved. The solution is to convey both lots to the title company who acts as an agent for all parties and holds the money under an agreement that provides for disbursement of the funds upon conveyance of the combined lot. This agreement would provide for return of the funds and reconveyance of the lots to the respective heirs should approval of the plat of the combined lots be denied.
From experience, I think that you have to do that if HUD financing is involved.
Maybe this criterion is being recognized in other loan situations.
Here, It has to go before the P&Z and then signed off by the council, dept. of Eng., mayor etc.
Make one plat, show old tracts with dim lines, write new description.
It sounds like a real mess as far as the ownership. Since Louisiana is a community property state, the wife would have interest in the hubby/girlfriend parcel also. But I don’t know how that works and the specifics of your situation
The estate attorney should have their hands full dealing with all of the heirs and the snags of the estate.