Buying or Selling a Home/buying land

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Expert: - 2/10/2010


Question
I want to buy ten acres of land connected to my mother's property.  the man who owns it is willing to sell, but has a mobile home on the property that he owes the bank for, with the land standing as collateral.  how can I buy the land, but not the mobile home that is on it?  can we separate the two?

Answer
Hello Michelle - This is a difficult question to answer based upon the limited information provided. If the seller is willing to sell then the seller may be willing to remove or include the appurtenance (Mobile) in the price for the property. You may be able to negotiate a more favorable sales price if you accept the burden of removing the appurtenance, whether you ultimately do or not. Basically, you are indicating the appurtenance is of no value to you. In a negotiation sense if it is worth something to the seller than the seller will opt to remove it, if not, then it is  just an obstacle and is probably of no value to the seller either. Are you certain the 'deed of trust' runs with the entire property and not just one parcel or a portion of it? If so, you could consider acquiring the property on which the appurtenance does not exist. Also, the seller might consider refinancing the appurtenance onto to just one parcel, or paying it off with the proceeds from the sale, then relocate the appurtenance. One other possibility may be that the seller makes an agreement to relocate the appurtenance to another lot somewhere else and renegotiate with the lender to transfer the 'deed of trust' from the current parcel to the new parcel. There are of course as many creative ideas as one can imagine. So consider changing the way you are looking at it and quite possibly additional options or opportunities will arise. Case in point, you asked whether you can separate the two.. the answer will depend on whether the appurtenance is considered real property or chattel. Chattel is personal property in which case the appurtenance #mobile# would not possess a 'certificate of affixture' aka not permanently attached. Chattel is not secured by real property, unless the beneficiary (lender/private money/friend) offered to personally finance the chattel and requested that the owner give the lender a note against the property as collateral. If the appurtenance possesses a 'certificate of affixture' then it is considered 'real property' not chattel. Sub-dividing the parcel is a possibility if you do not desire/need to own the portion of the parcel on which the appurtenance rests. The seller could relocate the appurtenance to another portion of the parcel that could be sub-divided... if sub-dividing is even a possibility. There is an old Chinese Proverb which says "if you change the way you look at things the things you look at change"... sometimes more minds offering suggestions expands the opportunities. Other times it assists in eliminating options that are not possible by law or zoning code. Should you elect to consider sub-dividing please consult the governing land management or planning and zoning department in your municipality or county. In addition, I recommend you seek a real estate attorney who specializes in sub-dividing land to provide you with additional information that may be pertinent to your decision to purchase the land. I hope this has at least offered you the basis for beginning to look at this from a different perspective. If you have additional questions relating to this post don't hesitate to reply. Please remember I am not a real estate attorney therefore this is not to be considered legal advice. - Todd Menard

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Todd C. Menard

Expertise

National Association of Realtors Code of Ethics and Professional Standards * Contract Questions: 05/05 Arizona Real Estate Purchase Contract, Exclusive Buyer Broker Contracts, Listing Contracts and associated contract documentation as it relates to boilerplate, covenants, contingencies, procedures and procedures. * ARMLS Arizona Regional Multiple Listing questions * Real Estate Professional Standards and Practices, Ethics, Obligations, Duties * Agency relationships in Arizona, Procurring Cause * Questions typicaly arising during the listing period * Questions typically arising during the escrow period * Questions about working with a real estate agent/REALTOR * Questions Related to New Home Builders

Experience

National Association of REALTORS Board of Director (2011) Arizona Real Estate Salesperson License (1991-1995), Arizona Real Estate Brokers License (1995-Present), Arizona Association of REALTORS Board of Directors (2008-Present), Arizona Association of REALTORS Professional Standards Committee (2008-Present), AAR Certified NAR Code of Ethics and Professional Standards Instructor, Southeast Valley Regional Association of REALTORS President-Elect (2011) Southeast Valley Regional Association of REALTORS Board of Directors (2008, 2009), Southeast Valley Regional Association of REALTORS Grievance Committee Chairperson (1998-2007), Southeast Valley Regional Association of REALTORS Bylaws Committee (2008-Present), Southeast Valley Regional Association of REALTORS Education Committee (2008), Arizona Association of REALTORS Forms Committee - Residential Purchase Contract (2005), Arizona Association of REALTORS Forms Committee - Residential Rental Agreement (2008), Arizona Association of REALTORS Forms Committee - Buyer Broker Agreement (2009), Arizona Association of REALTORS Presidents Advisory Group, Road to Professionalism (2009), Arizona Association of REALTORS GRI Curriculum Review Committee (2009), Arizona Department of Real Estate, Commissioner's Education Advisory Group Sub-Panel B (2010) Arizona Department of Real Estate, Commissioner's Statute and License Review Committee (2007)

Organizations
National Association of REALTORS, Arizona Association of REALTORS, Arizona Real Estate Educators Association (AZREEA), Arizona Regional Multiple Listing System (ARMLS), American Notary Association, Southeast Valley Regional Association of REALTORS (SEVRAR), Southeast Valley Regional Association of REALTORS Women's Council of REALTORS (2010-Present), Phoenix Association of REALTORS (1994-2000, 2005-2009), Scottsdale Association of REALTORS (1994-2000, 2005-2009), Maricopa/Glendale Association of REALTORS (1994-2000, 2005-2009),

Publications
"Real Estate in 2008"- Lifebushido Publishing (Contributory Author), SEVRAR Magazine, Internet Crusade, RealTown ListServe, Blogger.com, Active Rain

Education/Credentials
- AAR Certified Ethics and Professional Standards Instructor, Graduate REALTOR Institute (1993), Certified Negotiation Expert (CNE), Over 100 Hours of annual real estate continuing education, Annual Ethics and Professional Standards Development Workshops as required by the National Association of REALTORS, Approx. 36 hours of NAR Code of Ethics training annually, Numerous IDW, Seminars and Train the Trainer programs, Business Management Degree - 1981

Awards and Honors
2009 REALTOR of the Year Award, Southeast Valley Regional Association of REALTORS (10,000+ Members), Double Platinum Production Award ($45,000,000 Sales Volume)- Keller Williams Realty Int'l (2001), Top 15 Sales Production Keller Williams Realty International (2001), Top 5 Sales Producation Keller Williams Realty Southwest Region (2001), Top Recruiter Award - Keller Williams Realty Int'l, SW Region (2002), Who's Who in U.S. Executive (1983), Who's Who in U.S. Real Estate Professionals (2007)

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