|
The
possibility of
all of the
events and
circumstances
occurring
collectively
in this
article is
highly
unlikely.
However,
individually
each can and
has occurred
in substance
on projects
with which KDR
Real Estate
Services has
been involved.
Some of these
situations,
especially
those
involving
additional
expense, can
be prevented,
or at a
minimum
mitigated,
through
condemnation,
assuming this
option is
available.
However, we
have found
that dealing
with most
landowners in
a fair,
equitable,
consistent,
and patient
manner with
respect,
regarding
their loss of
real property
rights is the
best way to
attain
settlement.
While
we cannot
promise quick
negotiated
settlements at
the lowest
price, our
past
experience and
gained
knowledge of
the process
can and will
result in less
time, effort,
anguish, and
cost on your
part. Whether
your
acquisition
needs involve
road right of
way, slope or
permanent
easements,
temporary
construction
easements, or
any type of
utility
easement, call
us for
assistance in
what can be a
very complex
process.
The
following
story is not
entirely true
. . . but it
could happen.
It is a prime
example of
Murphy’s
Law, i.e., if
something can
go wrong, it
will. May it
never happen
to you.
Max
Proffitt, a
local
residential
subdivision
developer, had
recently
purchased a
100-acre tract
of land
subject to,
among other
requirements,
the obtainment
of 500 feet of
right of way
for a
transition
lane along the
road with
which the
entrance to
his proposed
subdivision,
Green Acres,
was to
intersect.
Unfortunately,
the 100-acre
tract had
limited
frontage on
the road and
he was going
to have to
acquire
off-site right
of way from
four private
landowners
across whose
properties the
transition
lane had to be
constructed.
Max
was not an
impatient
sort, but
because he was
into his
friendly
lender,
Inequity
Partners,
Inc., for what
many less
capitalized
citizens would
likely
consider more
than adequate
as a
retirement
fund, he was
anxious to
minimize his
interest
expense and
sell lots as
soon as
possible. The
county in
which Green
Acres was
located had a
Public Works
Department
with a staff
that was
capable of
handling the
acquisition of
the needed
right of way
for Max.
However,
because of a
demanding
workload, they
could not
accommodate
him for
several
months. But by
then the
interest
component of
Max’s
development
loan would
become a
significant
percentage of
his total
costs, a
scenario that
he did not
find
especially
appealing.
Being
an intuitive
entrepreneur
who had become
accomplished
at navigating
the regulatory
quagmire so
often
associated
with
governmental
bureaucracy,
Max approached
the county
with a
proposition to
acquire the
needed land on
his own behalf
and then
simply convey
title to the
county once
all the right
of way was in
place. Simple
enough, and
besides, he
was having to
pay for all of
it anyway. The
county was
receptive to
Max’s
proposal, but
reminded him
that he was
not a public
service
corporation or
otherwise
empowered by
the state to
acquire real
property
interest
through
eminent
domain. Max,
the artful
negotiator he
believed
himself to be,
assured the
county that
the threat of
condemnation
would not be
necessary and
that he would
have all the
required
signatures
within 30
days.
The
next day Max
stopped by the
county Real
Estate
Assessor’s
office to
gather
information on
the four
properties
from which the
right of way
was to be
obtained.
Although not
part of his
normal daily
routine, Max
reasoned his
effort would
result in time
saved in lieu
of having
someone else
do it . . .
and time is
money. In
researching
the assessment
records, Max
collected the
following
information.
Dr. Charles
Puller, LLC,
owned the
parcel
farthest from
the proposed
entrance to
Green Acres.
The other
parcels were
titled in the
names of the
Church of
Enlightened
Brethren,
Joseph and
Beatrice
Smith, and,
closest to
Max’s
property, Ida
B. Noe-Diehl.
Before
contacting the
respective
owners by
telephone, Max
thought it
best to mail
letters of
introduction
and briefly
explain his
project and
what he
needed. A few
days later he
began making
his phone
calls. His
first call was
to the
dentist, Dr.
Puller. After
several
attempts and
finally
reaching him
between
patients, Max
was informed
by Dr. Puller
that
preliminary
plans for his
new office
building on
the parcel
that was the
subject of his
letter had
been submitted
to the county
Planning
Department
and, once
approved, he
was going to
begin
construction.
Dr. Puller was
willing to
work with Max
. . . as long
as it did not
impact his
proposed
development.
Contacting
the Church of
the
Enlightened
Brethren was a
bit more
difficult.
After talking
to the pastor
of the church,
Max discovered
that only the
Trustees of
the church
could covey
title, and
even after
obtaining
their
signatures,
the transfer
would have to
be approved by
the county
circuit court.
Further delay
would occur
because the
Trustees met
only once a
month . . .
and the last
meeting was
two days ago.
Max
started to
have a sinking
feeling. One
of his
landowners had
a pending
project that
may be
impacted by
losing some
road frontage
and in his
second
situation it
looked like it
may take well
over his
30-day
deadline to
obtain clear
title. At
least the
remaining two
properties
should be easy
since they
involved only
individuals
and not
corporate
entities.
Max
found several
“Joseph
Smith’s”
in the phone
book; however,
none was the
one he was
looking for.
It turned out
his “Joseph
Smith” died
intestate in
1947 and his
wife,
Beatrice, who
acquired title
as the
surviving
spouse, passed
away two years
later with no
will and seven
children, two
of which were
by her first
marriage and
three who were
also deceased.
There were
several grand
children; most
of whom lived
out of state,
and some whose
names were not
known by the
family
spokesperson.
No one had
bothered to
notify the
Real Estate
Assessor of
the deaths of
Joe and
Beatrice and
because the
heir who
resided on the
property was
paying the
taxes, no one
knew any
better.
Max
now wonders
how much worse
could it get.
He soon found
out. When he
calls Ms. Noe-Diehl
she informs
him that she
is a
self-professed
strict
environmentalist
who has been
cultivating
exotic plants
in her front
yard for the
past ten
years. Her
rarest species
are located in
the area that
Max needs for
his right of
way. After
hanging up on
him the first
three times
that he
called, Max
(using his
artful
negotiating
techniques)
was finally
able to
convince Ms.
Noe-Diehl to
part with some
of her
plants... but
it would cost
him.
A
year later,
after
converting his
potential
development
profit into
loan interest
paid, Max
finally got
clear title to
all of his
needed right
of way. What
ensued during
that period is
summarized as
follows:
Property
of Dr. Charles
Puller, LLC
– The right
of way Max
needed
encroached
into the
proposed
parking lot on
a site where
land area was
limited. Dr.
Puller would
have had to
downsize his
office
building had
he gone
through with
his plans.
Instead, he
took the money
Max offered
him (after Max
paid a real
estate
appraiser what
he believed
was an
exorbitant fee
to provide an
estimate of
the value of
the
acquisition
and damages
resulting form
the loss of
parking) and
built a larger
office
building on a
more favorably
located and
larger site.
Property
of the Church
of Enlightened
Brethren –
After three
meetings of
the Board of
Trustees (two
of which
resulted in a
tie vote), the
Board agreed
to part with
the land Max
needed
conditioned
upon receipt
of an
appraisal (at
Max’s
expense) and
the
installation
of a sidewalk
along the
property’s
road frontage
. . . at
Max’s
expense.
Because the
circuit court
docket was
full, it took
three months
to finally
obtain
approval so
that the deed
could be
recorded.
Property
of Joseph and
Beatrice Smith
– After
tracking down
all the
missing heirs,
one of whom
was serving
time in an
out-of-state
penal
institution,
and three of
whom were
minors that
required a
guardian ad
litum to serve
on their
behalf, Max
had only to
prepare 28
checks for
distribution
and make
personal
deliveries to
three owner
recipients due
to changed or
undeliverable
addresses.
Property
of Ida B. Noe-Diehl
– After five
personal
meetings with
Ms. Noe-Diehl,
reimbursing
her for a
nurseryman’s
appraisal fee
for estimating
the worth of
the plants
that she would
lose (none of
which
contributed to
the market
value of the
property), and
doubling the
offer because
she believed
Green Acres to
be a tasteless
and
unnecessary
intrusion into
the serenity
of the
surrounding
woodlands, Max
needed only to
clear the
three
judgments
against Ms.
Noe-Diehl that
had been
recorded at
the circuit
court and pay
off the second
mortgage loan
that was
required by
the lender,
which also
necessitated
Max providing
yet another
approved
appraisal for
the lender’s
file. |