Purchased Private Street - In San Francisco

[Mark K]

He can charge for maintenance, etc, and the homeowners will have to pay as he now owns the HOA.

I doubt that the buyer has the authority to charge the owners for anything. They bought the assets of the HOA; the actual Assoc. (that has the right to asses fees) consists of the lot owners.

The buyer now owns a piece of property surrounded by hostile neighbors that can freely use his newly purchased prize whenever they chose and he can't stop them.

If you were appraising the street, would you say that the new buyer has more, fewer, or about the same rights to use the road as the existing owners? I'm curious because recently I was one of three court appointed appraisers for a small section of private road in a retail commercial development.

 

[Elliott]

The other homeowners will hire an attorney and the lawsuits will fly. All the homeowners have title insurance and a room full of lawyers or a judge will solve the problem. Like I said, the lady who bought the street is way too smug, acted like a cat who swallowed a canary, right before its owner hits it on the back of its head with a broom.

 

[Riick]

I doubt that the buyer has the authority to charge the owners for anything. They bought the assets of the HOA; the actual Assoc. (that has the right to asses fees) consists of the lot owners.

The buyer now owns a piece of property surrounded by hostile neighbors that can freely use his newly purchased prize whenever they chose and he can't stop them.

If you were appraising the street, would you say that the new buyer has more, fewer, or about the same rights to use the road as the existing owners? I'm curious because recently I was one of three court appointed appraisers for a small section of private road in a retail commercial development.

I'm certainly no expert in California Law, but the article *implied* that what they bought at Sheriff Sale was the Real Estate, and whatever Bundle of Rights that went with it. At least that's what I understand.
Laws differ everywhere; Around here they can Sheriff personal property for outstanding debts like overdue rent, but that is via a different Sale than Sheriff Sale for Real Estate.

Anyone here from CA that can clarify this?

/

 

[Mark K]

I'm certainly no expert in California Law, but the article *implied* that what they bought at Sheriff Sale was the Real Estate, and whatever Bundle of Rights that went with it. At least that's what I understand.
Laws differ everywhere; Around here they can Sheriff personal property for outstanding debts like overdue rent, but that is via a different Sale than Sheriff Sale for Real Estate.

Anyone here from CA that can clarify this?

/

I'd say that's generally the rule in most if not all states. You purchase the property free of liens, taxes, judgements, mortgages, etc.

However, the property remains encumbered by rights-of-way, easements, etc. The Sheriff sale doesn't extinguish power line easements, utility easements, ingress/egress easements, etc. I'm pretty sure the property owner's prescriptive easement rights for continued use for access and parking would remain, but like you say, it is CA.

 

[Mark K]

double post

 

[timd354]

I doubt that the buyer has the authority to charge the owners for anything. They bought the assets of the HOA; the actual Assoc. (that has the right to asses fees) consists of the lot owners.
.

From my reading of the article, I don't that is correct. I think that they bought the actual (private) street and the ground underlying the street at a real property tax sale. They now own that piece of real estate and presumably they could tear out the street, rent out parking on the street to outsiders, open it up to everyone (currently the street is gated), etc. The way this is going to get resolved is that the HOA/property owners will eventually purchase back the street from the buyers...the only question is what the price is going to be and how much money is made by the attorneys in the meantime.

 

[timd354]

The other homeowners will hire an attorney and the lawsuits will fly. All the homeowners have title insurance and a room full of lawyers or a judge will solve the problem. Like I said, the lady who bought the street is way too smug, acted like a cat who swallowed a canary, right before its owner hits it on the back of its head with a broom.

Title insurance is not going to help. Title insurance does not cover title issues that arise from the failure to pay property taxes.

 

[Mark K]

From my reading of the article, I don't that is correct. I think that they bought the actual (private) street and the ground underlying the street at a real property tax sale. They now own that piece of real estate and presumably they could tear out the street, rent out parking on the street to outsiders, open it up to everyone (currently the street is gated), etc.

I agree that they could open it up to other traffic. I don't agree that they could tear out the road and prevent the homeowners from using it for access to their properties. The buyers own the real estate free of liens and judgements but it remains subject to encumbrances, recorded or not, as in the case of a prescriptive easement.

A court will decide and maybe CA prescriptive easements laws are different, but in this state there's no way the buyers could prevent the homeowners from continuing to use the street (toll gate, tear up the road, etc.) for access or parking if they've been using it in the past for these activities.

My bet is that the homeowners will get a restraining order or injunction to prevent the buyers from doing anything with the road until its settled in court, which could be years away and have attorney costs well into 6 figures.

Personally I hope the buyer's ploy backfires on them and they lose their azzez on the deal.

 

[Bobby Bucks]

If the new owners are wealthy enough that the property doesn't have to be a true investment, they could have a great deal of fun. They could drop in half a dozen vintage singlewides and run an ad on Craigslist for lifetime free housing and weed for San Francisco's elite homeless class, they all have free iphones and wifi and would fill the place up within an hour......when the party begins let the compassionate ones sort it all out down at city hall and CNN.

 

[Michigan CG]

They could drop in half a dozen vintage singlewides and run an ad on Craigslist for lifetime free housing and weed for San Francisco's elite homeless class...............

They all have compassion and are happy to help the plight of the less fortunate but NIMBY.