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Category Archives: real estate development

Purchase option is assignable without consent, but there can still be a fight

The Hulls signed a real estate lease with a purchase option and put down a deposit of $56,000, which could be applied to the $198,500 purchase price, but would otherwise be non-refundable. The Hulls created a limited liability company (LLC) called Briar Road, and Briar Road attempted to exercise the purchase option. Stenger, the seller, refused, claiming that it had not approved the assignment of the purchase option by the Hulls to Briar Road.

What difference does the identity of the purchaser make? Read the rest of this entry

Real estate tax in the health care bill?

I received an email from a Realtor friend which included some strong rhetoric about the 3.8% tax on gains from the sale of residential real estate included in the new health care law, the Patient Protection and Affordable Health Care Act.

The point of the quoted rhetoric was to fuel voter sentiment against Democrats running for Congress in November by alleging that the bill is “set to screw the Read the rest of this entry

Branson Landing and the dilemmas of economic development

Cliff Sain’s excellent report on Branson Landing in the July 18 Springfield News-Leader contains statements that illustrate some of the dilemmas faced by developers and local governments when planning a large project.

Branson’s aldermen (none of whom were in office when the Branson Landing project was approved for construction) have chosen to take $1.4 million from the city’s general fund and $1.2 million from the city’s transportation fund Read the rest of this entry

The defunct HOA problem continues in Missouri, legislation needed urgently

Homeowner associations (HOAs) are given responsibility by recorded subdivision and condominium documents for maintaining, insuring and operating private communities’ common properties, such as streets, drinking water systems, sewer collection and treatment systems, and recreation facilities.

With many developers having abandoned projects before the HOA is operated by residents, the residents and other lot or unit owners (such as lenders that have foreclosed) are often faced with HOAs that cannot properly Read the rest of this entry

Branson Commerce Park opens new possibilities for Branson

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With its infrastructure complete, the streets, water and sewer systems of Branson Commerce Park were turned over to the City of Branson today. This 200-acre development on the north side of Branson is designed for commercial, light-industrial and residential development. In the photo, owner’s representative Phil Lopez and Branson mayor Raeanne Presley prepare to cut the ceremonial ribbon.

The original developer of Branson Commerce Park took advantage of Missouri’s Community Improvement District (CID) statutes to finance the installation of streets and water, sewer and underground telecommunication lines. Rather than install the infrastructure in phases, with years of construction traffic, the digging and disruption is over, except for what takes place on each lot. The CID program as used here does not involve the use of any taxpayer outlays or liability. However, a portion of the cost of installation of the infrastructure is allocated to each lot annually, collected with property taxes and remitted by Taney County to the trustee for the bondholders. The bondholders, through the purchase of the CID’s bonds, provided the construction money.

The Branson area is a popular destination for vacations and retirement, with not many private sector jobs outside these industries. Branson Commerce Park provides an ideal location for enterprises that support Branson’s extensive medical facilities and its many resorts, hotels and restaurants.

But there’s more. Because of its telecommunications infrastructure, Branson Commerce Park is a practical location for businesses that can be wherever there’s a good electronic link to the world. Entrepreneurs and employees who are attracted to the Ozarks may appreciate Branson Commerce Park’s proximity and easy access to residential neighborhoods, shopping, medical facilities, K-12 schools, and Branson’s RecPlex.

All owners are necessary parties in condominium litigation when class action fails

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The Villa Dorado condominium has 45 buildings, only nine of which have elevators. When the condominium association’s board assessed every unit owner for repairs to elevators, Epstein and Root protested. Their units were in buildings with no elevators, Read the rest of this entry

City of Sullivan must charge everyone the same tap fee

This post has been removed because the Missouri Supreme Court’s opinion in City of Sullivan v. Sites overruled the Court of Appeals’ opinion in  City of Sullivan v. Sites and affirmed the trial court’s decision upholding different tap fees for different parts of town.

Reformation, or when may a court change a deed?

When Rocky Lawrence saw the rig move onto his property to drill a gas well, he checked his deed. Sure enough, nothing on the deed indicated that the seller of the property reserved the mineral rights.

Patsy Barnes saw the same drilling rig and went to Conway Title Company to make sure that she had reserved the mineral rights when she signed the deed conveying that property to Lawrence.   She was certain that the contract for sale stated that the mineral rights would not be conveyed to Lawrence.

Sarah at Conway Title had one of those awful moments, realizing that the reservation of mineral rights was not in the deed that Patsy signed, though the purchase contract stated that the mineral rights would be reserved to the seller. Sarah asked Lawrence to sign a correction deed, but he refused. Then Lawrence filed a quiet title suit, hoping to affirm that he and his wife owned the mineral rights and would receive royalties from natural gas produced from the well on their land.

People ought to be bound by what they sign, especially when it comes to real estate. Otherwise, what would be the point of putting the contract or deed in writing or reading a contract before signing it?

Mistakes are inevitable, and it would be unfair to allow someone to benefit from a mistake at the expense of another. Courts have developed the equitable remedy of reformation for the correction of mistakes and have also developed some strict rules for determining whether to reform a contract or a deed. Though the exact rules vary a bit from state to state, the basic rules are these: Read the rest of this entry

Branson Landing land titles: how soon we forget how it was just 10 years ago!

Pictures help to tell the story that lies underneath the disputed land titles at the north end of Branson Landing. You can click on these images to enlarge them. Here’s the 1913 plat of Park Addition to the City of Branson.

The southwest corner of the Belk building sits about where Sycamore Street joins what has been called St. Limas Street and Boxcar Willie Drive, now Branson Landing Boulevard. The platted lots in Block 4 of Park Addition were the location of resorts until construction of Branson Landing began. Mang Park, with a baseball diamond and swimming pool, occupied Read the rest of this entry

Jury muddles title to North Beach Park and part of Branson Landing

On January 14, 2010, a Taney County jury rendered its verdict on the counterclaim of Doug Coverdell and Coverdell Enterprises against Empire District Electric Company, the Joplin-based utility that owns Lake Taneycomo and some adjacent land.

Coverdell’s counterclaim apparently sought to determine that Coverdell had better title than Empire to Branson’s North Beach Park and the north end of Branson Landing, possibly extending as far south as the north quarter of the parking garage.

The City of Branson has leased North Beach Park from Empire for decades. The deeds that the jury seemed to affirm include land that the City bought from owners other than Empire as well as land owned by persons not involved in the lawsuit.

A quiet title suit often doesn’t absolutely determine ownership, but only determines which of the litigants has a better claim to title. Without a definite legal description and the participation of all the owners, a verdict like the one here is much less than certain.

As events unfold, I’ll explain more here. If you want to get an email notification of updates to this blog, check the email box in the upper right corner of your screen.

Having reviewed portions of the court file, my tentative conclusion is that the jury’s verdict is a long way from resolving the dispute. Empire has filed a post-trial motion and others will be assessing their options. A judgment does not become final for 30 days, which can be extended by the filing of post-trial motions.

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