Submerged Land Lease

[Eric Boggs]

Was able to talk to a realtor and long term resident in the community. According to her, the docks transfer with a bill of sale and are not recorded. She says no one will loan on them. Sound like personalty to me.

 

[Eric Boggs]

Hey Mr. Rex,

Where are you in NC? I used to live in Huntersville from 2000 - 2005. Loved it there. I would like to move back, but the wife is a state of Fla employee, and she is the one accruing a pension. I guess we are stuck here for a long time.

 

[Mr Rex]

Near the NC/VA border.

 

[Webbed Feet]

Was able to talk to a realtor and long term resident in the community. According to her, the docks transfer with a bill of sale and are not recorded. She says no one will loan on them. Sound like personalty to me.

Hello everyone,

<....snip....> Question: Is the boat slip real estate? The lease specifically states that the lessee is "prohibited from making any claim, including any advertisement, that said land, or use thereof, may be purchased, sold, or resold."
Thanks for your input. E

I was about to weigh in here and ask you what in the world is your assignment for this, is there a definition of value being used and what is it, what have you and your client worked out for a SOW, and have you bothered to identify what type of ESTATES exist currently? What was causing you to think only one single estate was at play? Just because a property owner has an estate in fee involving land with a house on it does not mean some other type of estate is part of that.

The weakness here is a lack of understanding of estates, and I would guess your client's staff being rather clueless as to what was involved.

 

[Eric Boggs]

Well, it looks to me like the POA has a LEASEHOLD ESTATE, not the individual owner. The house is in FEE SIMPLE ABSOLUTE. Homeowner has access to the high water line via a deeded section of a lot, deeded to the POA for said access. Assignment is mortgage loan. Deff of MV preprinted. Source: FHLBB, FHLMC (Freddie Mac), FNMA (Fannie Mae) and found in the Federal Register. Do you have any wisdom to impart regarding the matter at hand?

 

[Webbed Feet]

Well, it looks to me like the POA has a LEASEHOLD ESTATE, not the individual owner. The house is in FEE SIMPLE ABSOLUTE. Homeowner has access to the high water line via a deeded section of a lot, deeded to the POA for said access. Assignment is mortgage loan. Deff of MV preprinted. Source: FHLBB, FHLMC (Freddie Mac), FNMA (Fannie Mae) and found in the Federal Register. Do you have any wisdom to impart regarding the matter at hand?

Sure, what gives the owner of the Fee Estate access rights? They may have access rights, but under what mechanism? Sublease (sub-tenant), undivided or limited common interest between multiple leaseholds, easement? Not that it matters as I believe you've already answered your own question in your own posts.

 

[Eric Boggs]

I believe you've already answered your own question in your own posts.

Yep.......

 

[Restrain]

Just a comment: There is a 5 year limitation on the lease, as opposed to a long-term lease. So the HOA has the remnant of the 5 year lease. The property owner may have the use of the dock per an agreement with the HOA, but the length of that lease is the reminant of the 5 year lease, and may require an on-going payment similar to a lease of any other boat dock along the waterway. As such, there does not appear to be any sort of value attributable to the property being appraised for the use of the dock, other than what would accrue to any other property within the HOA having similar access to the HOA amenities.

 

[Eric Boggs]

Yes, exactly right. It is a 6 year lease with 5 years remaining. It is rare they aren't renewed, but anything can happen when begging from the gubment.