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Land ownership question about property with multiple owners
Posted on 1/8/22 at 3:18 pm
Posted on 1/8/22 at 3:18 pm
600 acres purchased by 3 individuals. The bank loaned the money to them as unbroken property. From what I understand this is rarely done but does happen.
Owner # 1 paid his entire loan amount on the property.
Owners # 2 and 3 still owe on the property.
Can owner #1 separate his 200 acres from #2 and 3?
Owner # 1 paid his entire loan amount on the property.
Owners # 2 and 3 still owe on the property.
Can owner #1 separate his 200 acres from #2 and 3?
20
Posted on 1/8/22 at 3:21 pm to Recovered
Not sure if the bank would allow it to be subdivided while there is a mortgage. Right now they all have an undivided interest in the land and if one defaults it would affect the other two.
Posted on 1/8/22 at 3:26 pm to Recovered
You can have it surveyed and parceled out, but the mortgage holder still has a mortgage on it and would have to agree to release it. Also, any smart lender would be very reluctant to release that person from the note because he shows more strength than the other two. So they could release the property, but not the borrower. It is how alot of subdivisions are done. The best option would be to survey it and parcel it and have the other two refinance. Also, the municipality, Parish or County would have to approve the survey and new property description.
Posted on 1/8/22 at 3:26 pm to Recovered
I have no clue but it's an interesting question that I would really like to know of any precedence in as I find myself in the same situation with family.
Basically what I was told as well and our lender wouldn't agree to it.
quote:
You can have it surveyed and parceled out, but the mortgage holder still has a mortgage on it and would have to agree to release it.
Basically what I was told as well and our lender wouldn't agree to it.
This post was edited on 1/8/22 at 3:28 pm
Posted on 1/8/22 at 3:27 pm to Recovered
Are the other two owners on board with dividing? If not how the 600acres is divided could become a huge issue.
Posted on 1/8/22 at 3:27 pm to Recovered
No way in hell a bank will just release that juicy collateral.
This post was edited on 1/8/22 at 3:28 pm
Posted on 1/8/22 at 3:28 pm to Recovered
The bank can do whatever it wants. You'll have to negotiate with them. At the very least they'll make you subdivide out your portion. The other two borrowers would need to qualify for the loan on their own (including w bank determining adequate value of their remainder, to secure the loan).
Nothing magical here.
Nothing magical here.
This post was edited on 1/8/22 at 4:20 pm
Posted on 1/8/22 at 3:29 pm to Recovered
Lawyer answer.
"Hmmmm. It depends. Going to need five or six hours at $300 an hour to research this and give you an answer."
In reality, they already know the answer.
"Hmmmm. It depends. Going to need five or six hours at $300 an hour to research this and give you an answer."
In reality, they already know the answer.
Posted on 1/8/22 at 3:36 pm to Recovered
Owner 1 (who paid off his share) would need to convince the other two to refinance the 400 acres that would be their share and allow for a 200 care parcel to be separated by deed to owner 1 with no financing/loan. The bank would typically allow the subdivision and refinance assuming the borrowers are willing to pay survey and refi costs.
Never doubt a bankers willingness to write out a new loan under new terms
Never doubt a bankers willingness to write out a new loan under new terms
Posted on 1/8/22 at 3:39 pm to Recovered
Survey on land that big will be expensive. Cost me $7,500 to have my 130 acre piece done 4+ years ago.
ETA: sitting in a box stand on it right now as I type this
ETA: sitting in a box stand on it right now as I type this
This post was edited on 1/8/22 at 3:41 pm
Posted on 1/8/22 at 3:42 pm to bayoudude
Damn!
Posted on 1/8/22 at 3:47 pm to Recovered
Real estate attorney...this will end up in litigation.
Posted on 1/8/22 at 3:52 pm to SalE
I have no doubt about that either. It’s family members #1 and 2 are getting up in age. What may have sounded great 20 years ago is setting up to be a long dispute.
Posted on 1/8/22 at 3:54 pm to Recovered
For sure as that piece of land is worth 7 figures. Do the families of those involved get along?
This post was edited on 1/8/22 at 3:55 pm
Posted on 1/8/22 at 3:56 pm to bayoudude
The spouse of #3 is a complete idiot!
Posted on 1/8/22 at 3:56 pm to Recovered
Get a lawyer. *Not legal advice* lol but seems like making an LLC for it would be the better way to do stuff like that right?
ETA: I should have said "seems like if the land was in an LLC it would make things easier."
ETA: I should have said "seems like if the land was in an LLC it would make things easier."
This post was edited on 1/8/22 at 5:01 pm
Posted on 1/8/22 at 4:02 pm to Recovered
quote:
Land ownership question about property with multiple owners
quote:
O-T Lounge
You’ve come to the right place
Posted on 1/8/22 at 4:03 pm to BorrisMart
Explain to me like a 16 year your LLC reasoning?
Posted on 1/8/22 at 4:07 pm to jbgleason
quote:
Lawyer answer.
"Hmmmm. It depends. Going to need five or six hours at $300 an hour to research this and give you an answer."
In reality, they already know the answer.
While I know some scum bag lawyers will do this, I'd also like to shout out to the hundreds of people that call my office every year wanting free legal advice (and thus the potential for a malpractice claim) because I already know the answer to their questions.
Posted on 1/8/22 at 4:09 pm to Recovered
I’m gonna say no
The bank likely won’t let you do it. Likely would have to pursue the other 2 owners for breach of contract damages (assuming they all agreed to pay in some way)
The bank likely won’t let you do it. Likely would have to pursue the other 2 owners for breach of contract damages (assuming they all agreed to pay in some way)
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