All Forum Posts by: Joshua Gorsky

@Apostolos Karnavas

The seller may have an old survey, or there may be something on file with the municipality. It sounds like an easy issue to resolve during your due diligence or inspection period. It’s also not an unreasonable concern to raise with seller.

@Terrence Stark

Typically the contract to buy the new house would specify that the builder/seller would deliver the type of plans you are referencing.

It’s worth double checking to see if it did. If it did not, did the builder provide a specific for their refusal?

@Ronald Roetsel

Different states have different requirements for what constitutes adverse possession. I’ve written letters on behalf of clients in similar positions to yours reserving the right to request the improvements be removed in the future. These types of letters should bind successors and assigns and run with the land. On occasion these letters have resulted in the parties entering a more formal easement agreement.

@Maya S.

In representing both lenders and borrowers, I’ve seen some solutions other than tenant signing an extension prior to closing.

For example:

- Lender drops the LTV to account for additional risk.

- Tenant agrees to either start the loan with recourse, with it burning off after the extension is signed, or start the loan as non-recourse with a springing trigger if tenant does not sign the extension soon by a certain deadline.

- Lender requires a heavy TI/LC reserve until the extension is signed.

@Zhanna Kelley

Hi Zhanna, I am a real estate attorney in NJ. What is the FMV of the property today? Glad to talk specific strategies if you are interested.

@Alex Sarnoff

There’s a lot to unpack in your post. I’ve been involved in both conventional and reverse 1031 exchanges in different states. While you are correct that you’ll be relying on your purchase of the replacement property to go through, there are a few strategies to use and language to add to the PSA to try and keep a seller honest and protect you as buyer.

The attorney negotiating the sale and purchase should hedge the risk snd build in flexibility on both ends.

Reverse 1031s are doable, but expensive complex.

Glad to exchange posts here or in DM.

@Sohail Bas

I’ve represented both borrowers and lenders in SWAP transactions. Glad to connect and discuss my experiences from both sides.

@Michael Caldwell

I think the type of transaction is more important than potential tax consequences.

I personally don’t like installment sale contracts or contracts for deeds, especially over long periods of time.

Let’s say you have to make 100 payments in order to “buy” the property and you miss payment 98. What happens? Do you lose the benefit of the first 97 payment? For this reason many states will treat installment sales contracts as mortgages and require a foreclosure process.

In any event, push to take title immediately and the terms of the seller financing sound like a home run.

@Dawn Peterson

You could always use a different name. Generally speaking, there wouldn't be a legal need to transfer the LLC to Florida. The only consideration may be that you'll still need a registered agent for service of process in NJ. This can be accomplished by hiring a service for a fee. I'm curious as to the thoughts of a CPA here given the differences in tax implications generally between NJ and FL.