mikekindel
Junior Member
What is the name of your state (only U.S. law)? Florida
Good afternoon, I have a question about a piece of property my father and I own. I will try to be as short and informative as I can as this is a fairly lengthy situation we are/have been in.
My father purchased a business over 30 years ago and over the years purchased small lots connected to the original property. Approximately 8 years ago we started a very large expansion and without going into much detail the expansion failed. When we took out a substantial loan we of course used the business property as collateral. Again long story short, loan was unable to be paid which lead to the foreclosure of the business. Here's where it gets a little tricky. While we were foreclosed on we never closed down as the bank that took over the property let us keep operating as usual except we were paying the bank a monthly "rent" payment so to speak. Next tricky part, the bank is foreclosed on by FDIC. Again, we operate as usual with an agreement from FDIC to now pay them a monthly "rent" payment. Next comes new buyers. A gentleman came to us recently wanting to reach a lease agreement along with another interesting piece of information. A piece of the property was never tied into the collateral used for the loan meaning we still own a very small piece of land that is now dead in the middle of the new owners property. Along with the lease, which was not anything we would want to sign, he brought two separate contracts which dealt with the piece of property in which we still own. He brought 1) A Corporate Warranty Deed that in less words said he would purchase the land for $10. He also brought 2) A Quit Claim Deed again saying he will purchase the land for $10.
My question is I guess do we have any leverage having this small piece of land. The gentleman I speak of only wants to issue a 6 month lease which in our eyes is nothing more than giving him 6 months to get his ducks in a row to bulldoze and develop the property my father has owned/worked for many many years. We do know for a fact property connected with what used to be our property is owned by business partners of the new owner. We are not rich people and we do not wish to be difficult or make this new owners life harder than i has to be, but we do want to do what is in our best interest. All we want is a long-term contract that is reasonable for both parties.
Summary of all of this. The new property owner legally owns most of the property in which our business sits. We own a small piece that will be landlocked if and when he develops the property around which we own. Do we have any right and/or leverage for negotiating a lease agreement?
Thank you for taking the time and I apologize for such a long post, but I wanted to give the informed rundown of what has happened. Also noteworthy was that he wanted us to sign the papers within two days of approaching us with all of this information.
Mike
Good afternoon, I have a question about a piece of property my father and I own. I will try to be as short and informative as I can as this is a fairly lengthy situation we are/have been in.
My father purchased a business over 30 years ago and over the years purchased small lots connected to the original property. Approximately 8 years ago we started a very large expansion and without going into much detail the expansion failed. When we took out a substantial loan we of course used the business property as collateral. Again long story short, loan was unable to be paid which lead to the foreclosure of the business. Here's where it gets a little tricky. While we were foreclosed on we never closed down as the bank that took over the property let us keep operating as usual except we were paying the bank a monthly "rent" payment so to speak. Next tricky part, the bank is foreclosed on by FDIC. Again, we operate as usual with an agreement from FDIC to now pay them a monthly "rent" payment. Next comes new buyers. A gentleman came to us recently wanting to reach a lease agreement along with another interesting piece of information. A piece of the property was never tied into the collateral used for the loan meaning we still own a very small piece of land that is now dead in the middle of the new owners property. Along with the lease, which was not anything we would want to sign, he brought two separate contracts which dealt with the piece of property in which we still own. He brought 1) A Corporate Warranty Deed that in less words said he would purchase the land for $10. He also brought 2) A Quit Claim Deed again saying he will purchase the land for $10.
My question is I guess do we have any leverage having this small piece of land. The gentleman I speak of only wants to issue a 6 month lease which in our eyes is nothing more than giving him 6 months to get his ducks in a row to bulldoze and develop the property my father has owned/worked for many many years. We do know for a fact property connected with what used to be our property is owned by business partners of the new owner. We are not rich people and we do not wish to be difficult or make this new owners life harder than i has to be, but we do want to do what is in our best interest. All we want is a long-term contract that is reasonable for both parties.
Summary of all of this. The new property owner legally owns most of the property in which our business sits. We own a small piece that will be landlocked if and when he develops the property around which we own. Do we have any right and/or leverage for negotiating a lease agreement?
Thank you for taking the time and I apologize for such a long post, but I wanted to give the informed rundown of what has happened. Also noteworthy was that he wanted us to sign the papers within two days of approaching us with all of this information.
Mike
