EMINENT DOMAIN

MY IN-LAWS PURCHASED A COTTAGE, ON A CHURCH CAMPGROUND, BACK IN 1967, ALL RIGHTS TO THE COTTAGE AND LOT LEASE WERE RELINQUISHED BY THE FORMER OWNER. THEY WERE TOLD THAT THEY HAD A 99 YEAR LEASE, OR PERPETUAL LEASE ON THE LOT, BUT DID NOT RECIEVE A WRITTEN LEASE. THE CUHCH IS SELLING THE GROUNDS AND THEY TOLD ALL THE COTTAGE OWNERES, 765 OF THEM THAT MUST EITHER MOVE THEIR COTTAGES OR TURN THEM OVER TO THEM. DOES EMINENT DOMAIN APPLY HERE, AND CAN YOU EXPLAIN IT TO ME? THEY HAVE TO VACATE THEIR COTTAGE, IN MANSFIELD, OHIO BY AUGUST 31.

[HomeGuru]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by SEKOTS:
MY IN-LAWS PURCHASED A COTTAGE, ON A CHURCH CAMPGROUND, BACK IN 1967, ALL RIGHTS TO THE COTTAGE AND LOT LEASE WERE RELINQUISHED BY THE FORMER OWNER. THEY WERE TOLD THAT THEY HAD A 99 YEAR LEASE, OR PERPETUAL LEASE ON THE LOT, BUT DID NOT RECIEVE A WRITTEN LEASE. THE CUHCH IS SELLING THE GROUNDS AND THEY TOLD ALL THE COTTAGE OWNERES, 765 OF THEM THAT MUST EITHER MOVE THEIR COTTAGES OR TURN THEM OVER TO THEM. DOES EMINENT DOMAIN APPLY HERE, AND CAN YOU EXPLAIN IT TO ME? THEY HAVE TO VACATE THEIR COTTAGE, IN MANSFIELD, OHIO BY AUGUST 31.<HR></BLOCKQUOTE>

Since there is no written lease, the in-laws need to comb all their records to search for any letters, notes and other correspondence with respect to any discussion of a fixed lease arrangement. Look for anything in writing from the church, real estate agent, church representative, previous seller etc. stating a 99 year or perpetual lease. The reason for this search is to provide evidence to make a claim that there was in fact a verbal lease agreement (unwritten and therefore unrecorded) encumbering the property. If the property is in fee simple, they need to prove that a long term lease was created with the individual cottage owners as lessees. The landowner is the lessor and created a leasehold situation. The landlords interest is called the leased fee interest and the cottage owners own a leasehold interest. The issues can get rather complex, but in simplest form, the cottage owners have to make a claim that they have are part owners of the land via a leasehold interest. This interest can be compared to having somewhat of an equity interest in the property which has value (declining over the term of the lease) that could be sold and in some cases even mortgaged.
If all 765 of the cottage owners were given a similar long term lease, there are several ways to mediate, arbitrate, or litigate. On way is to hire an attorney to represent the cottage owners on a class action settlement or litigation. Numerous lawsuits could be filed such as by indivduals that opt out of the class, the class of cottage owner plaintiffs and even by a separate association as plaintiff. An association could be formed titled Association of Cottage Owners strictly for this purpose. There would be a cloud on title and the church would want to settle so they could close the deal with the new Buyer. 765 cottage owners would be a lot of unhappy campers.

The issue of eminent domain is questionable but may be used as a threat against the church. Sounds like you need help from Your Eminence Domain. Eminent domain is the act of the government aquiring private property for public use. It may seem reasonable that due to the large number of cottage owners, the government may look at this situation for eminent domain consideration. The threat to the church would be that the cottage owners would file a lawsuit forcing the government to aquire the property through condemnation in order to maintain 99 year leases to the cottage owners.

[This message has been edited by HomeGuru (edited August 02, 2000).]