All Forum Posts by: Joshua Gorsky

@Robert Marek

It would be prudent to double check the zoning of your property as well. If others have done the same thing, the zone likely permits duplexes, but it would be great to know for certain. While an architect is important, a professional engineer will be crucial also. They will examine the zoning code and advise as to how big your structure could be to comply with all relevant ordinances.

@Revekah Cosby

Like others have stated, it really depends on the terms of your specific contract. If you used a Realtor Form, there are a lot of contingencies already included that would have had to have been specifically negotiated out. Additionally, if you were planning on getting an FHA loan, it would be strange that you also waived the financing contingency. The answer to your question is in the details of your paperwork.

@Tammy Silva

I’m glad to see if I can help here, or kick some ideas around. I spent a few years as a commercial mortgage broker before becoming a real estate attorney. I’m located in central / northern NJ but have some familiarity with southern NJ as well.

@Joe Martella

Hi Joe, I’ve been involved in land use matters similar to yours, albeit in other parts of New Jersey. Your issue is usually resolved by either (i) rezoning the property or (ii) applying for a use variance to permit a residential use in a commercial zone. The specifics of the deal and the appetite of the municipality usually dictate which path is best. Glad to talk more about the project.

@Ryan Talmadge

I agree, an attorney should be consulted before moving forward with this one.

There may be a creative solution here, but you’ll need to navigate a lot of potential pitfalls along the way.

Where is the property located?

@Ivan Correa

Wow. What an issue. I’m currently helping a client purchase a property from a private lender who took ownership of the property via a deed in lieu.

There’s no easy answer to your questions, but from your hypothetical, one or more parties involved may have some liability.

Your hunch is right that in order to sell the Property at its maximum value, you’ll need to do your best to sort through the mess.

I’m glad to chat more about it offline to see if I could guide you in the right direction.

Where is the property located?

On occasion, when there is a lender involved, I’ve seen Sellers remove an appraisal contingency, but allow for Buyers to keep a mortgage contingency. That is, if the appraised value comes in so low that the financing no longer works, the contingency is still valid. Some Sellers will close this loop as well, or at least negotiate it to force Buyer to take a higher leverage deal if available, but not every Seller does.

@Chris Brillante

Hi Chris, can you tell us more about the deal? How many units? Will it be sold via the standard realtor contract like a traditional residential deal, or via an attorney prepared contract which is more common on commercial deals?

There may be some strategies to work-around not having an appraisal contingency, but the quick answer to your question is that there are a lot buyers limiting due diligence and contingencies in order to win deals today.

@Zachary DeNeen

Hi Zach, I’ve seen both of your hypothetical solutions be true. On occasion, a NJ lender will follow their existing relationships out of market. Other times they won’t, and a local lender is best. Where is your out of state property?