Re-Sale Deed Restriction

[Tim Schneider]

The statement I included is very close to what Richard suggested. It will be interesting to see if UW has a problem with it.

 

[The Warrior Monk]

Ok, now what do you do if the client is insisting on a CB1 only appraisal?

Webbed.

I'd inquire as to why they wanted an appraisal completed on a property that they are not lending on.

 

[Mike Boyd]

[.

P.S. I suppose the contract also says that the deal is off if the buyer cannot obtain financing... right? Most of them do. So if this completely sale fails for some reason, we are saying the private party contract momentarily altered the market value over a contractual agreement that never came to fruitation? Definition of Market Value: Typical buyer, typical seller... not this buyer and this seller. Nor their contract.[/QUOTE]

Mr Feet,
Look at the ENTIRE definition. The MOST PROBABLE SELLING PRICE is a critical part of it. Is it PROBABLE that someone would pay a price that creates a cloud on the title?

I would guess that the deed restriction has a remedie if it is sold for more than $68,000; such as foreclosure, forfeiture of the excess sales price, reversion to the city, county or the developer.

 

[uncle fish]

It sounds like a habitat for humanity home.

 

[Webbed Feet]

Mr Feet,
Look at the ENTIRE definition. The MOST PROBABLE SELLING PRICE is a critical part of it. Is it PROBABLE that someone would pay a price that creates a cloud on the title?

I would guess that the deed restriction has a remedie if it is sold for more than $68,000; such as foreclosure, forfeiture of the excess sales price, reversion to the city, county or the developer.

Mr. Boyd,

I'll agree we do not know 100% of all the facts here. There does seem to be an exception for darn near anything we try to establish on the forum. For all I know we do indeed have some governmental program at work here and once a property is owned under that program the governmental forces at work under the program do indeed affect the market value. I just don't know that, and I'd sure hate to see our government take a loss forclosing on a property and then, by governmental decree, create a situation forcing a property to sell below market value. That would be adding insult to injury to the tax payers by screwing them twice. But that is another matter.

I understand what you mean, but I want to note the wording. The "price" is something I have never heard of as being able to create a cloud on title, and not the situation here. It's not the price, it is a contractual situation being caused by the seller. Off hand, I am not even sure it really is a "cloud" on title. The real estate can still be sold and transfered within 90 days, just for a limited price. I don't think that is a cloud on title. The title is still marketable. However, there would be a condition.

Maybe I do need more information from the original poster on all of this. Or to read the original post more. But at the moment I am still back to our definition of market value requires examining concessions in comparables for affect on market value. Examining contract matters regarding a subject is to be able to explain a contractually agreed subject contact price versus the opinion of value. Not set the opinion or affect it.

I.E. ..... Subject price $200,000 with contract to toss in $100,000 Lamborgini car. Market value opinion of real estate turns out to be $100,000. Reason of value opinion versus contract price? $100,000 worth of personal property is being included in the sale. Result: The sales contract between these two specific parties did not alter the definition of market value the appraiser was opining under. That being a hypothetical sale taking place between typical sellers and buyers being reflected to obtain a most probable price opinion. Not the sale between these specific seller(s) and buyer(s) in order to do that.

Now governmental police powers at work causing an affect on market value due to the seller being the government and a program forcing virtually all market participants to consider those police powers? Hmmmm... in our case here by the original poster.... would FNMA be forced to turn down an offer of $20,000,000 for the property due to some program saying the government cannot take the money? If not, it makes my head hurt as to why any "current" appraisal would be ordered. Guess I'm not up to thinking about that one. Or is this just a program that limits any resale price within 90 days after a sale? If the later only, I am back to all my prior posts. As of the effective date for this sale, the contract would have no affect on market value.

But I have not been informed as to that high of level of detail on this. Did I miss it?

Webbed.

 

[Tim Schneider]

Or is this just a program that limits any resale price within 90 days after a sale?

Correct. On fact it doesn't specifically say what would happen if it did resell for more than the allowed amount.