Jordan Ramis pc. Attorneys at law

Agricultural Sale

Encumberances

Problem

  • Our client desired to sell property that they owned but discovered in the preliminary title report that the property was encumbered by numerous liens, keeping the sale from moving forward in the timeframe desired. 
  • An improper lien was placed against the entire property, notwithstanding a partition and prior sale of one parcel to our client, by the former property owner’s lender.
  • A cell phone company entered into a lease with our client, the current property owner, to construct a cell tower lease on the property, but they never built the tower.  However, a memorandum of the cell tower lease had been recorded against the property and was still encumbering the property almost nine years later.
  • The County’s covenant related to the cell tower lease required that the tower be removed from the property if not in use for a period of one year.  This covenant was also recorded and still encumbered the property even though the tower had never been built.
  • The property buyer waived due diligence and wanted to close within a week following receipt of the preliminary title report.  Closing required preparation of seller financing documents for a portion of the sales price.

Solution

  • Jordan Ramis utilized strong relationships with the title company as well as our deep experience working with large banks and cell tower leases, to locate the appropriate people and departments to clear up all errors.  We located the proper department for the lender, advised the bank of its error, and obtained written verification that the lien would be released.
  • Jordan Ramis, again, located the appropriate department for the cell phone provider, prepared and had approved by its internal legal counsel a form for termination of lease.
  • We contacted county counsel, who authorized removal of the covenant from the title based on Jordan Ramis PC’s representation that the tower had never been built.
  • Jordan Ramis prepared the seller financing documents and negotiated with the title company to insure around the encumbrances to facilitate closing until the encumbrances could be removed.

Results

  • For our client, we were able to obtain evidence that all three property encumbrances could and would be released and, based upon such written verification from the parties we located, obtained approval from the senior title officer that the sale could be closed and the title company would insure around all three encumbrances.
  • The sale closed within the timeframe set by the buyer.
  • We then assisted the title company by obtaining the documentation it needed to record and remove the encumbrances from the title of the property.