All Forum Posts by: Arthur C.

@Shadonna N.

Thanks for chiming in.

Yes, I’m aware about water escrow. Title company usually includes approx $300 for water since it is a lien against the property regardless of who the property owner is for non-payment. Upon my recent research, it seems that other utilities such as electricity and gas are nonlienable. In other words, they would not put a lien against the property but rather against the person on account.

Am I having this correct understanding?

AC

Hey Guys,

I am getting close to the settlement day acquiring a foreclosed property and something came up in my mind about unpaid utilities at a foreclosed property.

Does anyone know if the utilities happen to remain unpaid by former owner at a foreclosed property will put liability on a new owner in Washington DC? From my understanding, there is usually a water escrow at the time of settlement but not sure about Pepco electricity and Washington Gas?

I would appreciate any comments here. Thank you.

AC

@Tom Gimer

Thanks Tom for your response.

Sounds like the typical lead time for Motion to Substitute Purchaser seems accurate as up to 21 days per info I found online re: Rule 12-I Motion Practices.

One more question I have for you:

What could be other possible reasons for delay with the assumption that Original Owner of the foreclosed property or the Bank who took it to auction gives their consent on the assignment contract between me and the Seller to proceed with the motion filing afterwards? Just wanted to understand what implications that can trigger a delay.

AC

Does anyone here in the forum know much about how long it usually takes for a real estate attorney to get a court approval from foreclosure trustee and the Superior Court after filing a Motion to Substitute Purchaser?

I’m basically trying to purchase a foreclosed property in DC from Seller who won it from the auction. He claimed that his attorney said it would take up to three weeks to get court approval after the filing. I have my suspicion that is not true since it is my understanding that foreclosure process is typically pretty slow especially when it comes to Superior Court. Three weeks lead time I think is too optimistic. This is somewhat a big concern for me since there are accrued interests associated with the auction that I will be responsible paying at settlement based on terms Seller proposed.

If anyone here has experience or knowledge about that process, please do kindly chime in. I’d greatly appreciate any inputs you bring here.

AC

@Michael Plaks

@Brandon Hall

Just thought about tagging you two here to see if you can help answer since you have helped me with my questions in the past. Thanks!

In addition to my original post, the reason why I asked because it would not have been permissible to do $500K capital gains exclusion in total for me and my business partner, had we done the conversion first before living in the upper unit, for example. We would be only entitled to $500K capital gains exclusion for the upper unit only not for the lower unit. So, my ideal strategy is to live in it as a single family home for at least two years before the conversion so that we would be eligible for $500K capital gains exclusion in total for these two condo units combined. Does that make sense to you?

Thanks,
AC

Hey guys!

Hope this post finds you well!

Anyway, I've come up with a scenario where I am starting to wonder if it is doable and completely legal related to capital gains exclusion rule. If my business partner and I find a property in DC zone as RF-1, which enables a single family home conversion into two condo units as a matter of right. In terms of taxability, from my understanding, if my business partner and I are to live in the property for at least two years, there will be capital gains exclusion up to $250K for each of us. So, if we live in the property as a single family home for at least two years then move to other place while doing a full conversion of two condo units (each unit will have its own respective legal unit #) then do we get capital gains exclusion of $500K ($250K each for me and my business partner) off the sale of these two condo units in total? I am thinking that should be allowed since it is originally a single family home and as long as we live in it for at least two years, we should be able to absorb up to $500K capital gains exclusion from the sale of these two condo units. 

Your thoughts?

Thanks,
AC

@Russell Brazil

That’s what I was also thinking. Ok, thanks for all your time responding to this post. Much appreciated!

@Russell Brazil

Yes, I meant ADU. Would there be any barrier, you think? I have one guy who added an ADU in basement of his SFH but his is in R-2 zone. The property I am looking at is zoned R-1-B.

By the way, it is still permissible to convert a SFH into two legal condo units only if they are zoned RF-1. That's my understanding as I did the full construction of a two-unit condo building. I've seen others did the conversion of several SFHs to two legal condo units, though.

Hey guys,

I am considering buying a property in Washington DC zoned R-1-B. Does anyone know if I can get a permit for a separate legal unit in basement aside the other unit above ground in that zone? I am thinking as long as an egress gets added somewhere for basement in case of the need to escape in an emergency situation, it should be permitted. I could be wrong so I am looking to have someone like an architect in DC or someone who’s familiar with DC zoning laws to chime in.

Thanks a bunch.

AC