Common Costs of new development

[Concord Land Holdings]

What is the name of your state? Oklahoma

I own a piece of property that includes an office building built for my business and 2 other plots I am selling for new business construction. I am wondering what the agreement is called that is drafted to determine the shared responsibilities for future "common expenses" such as Landscape maintenance, repair of parking lot, maintenance of property lighting and the electrical and water bills for those items. I would appreciate guidance on all the items that may need to be included in this agreement, what the agreement would be called, and what type of law professional would handle this type of document. Thank you

 

[quincy]

What is the name of your state? Oklahoma

I own a piece of property that includes an office building built for my business and 2 other plots I am selling for new business construction. I am wondering what the agreement is called that is drafted to determine the shared responsibilities for future "common expenses" such as Landscape maintenance, repair of parking lot, maintenance of property lighting and the electrical and water bills for those items. I would appreciate guidance on all the items that may need to be included in this agreement, what the agreement would be called, and what type of law professional would handle this type of document. Thank you

It is often called a "Common Area Maintenance" (CAM) agreement.

You can list in your leases the CAM fees, how they are to be charged (e.g., monthly, annually) and what the fees cover (e.g., landscaping, parking lots, whatever).

You should seek out an attorney in your area (a lawyer specializing in real estate law could be best) for help drafting your lease agreement and CAM provision.

Good luck.

 

[Concord Land Holdings]

Thank you Quincy. I used a CAM when I was leasing space. Would this be considered different since the land would be purchased and owned by different people, but we share the parking and general landscaping? thank you.

 

[LdiJ]

Thank you Quincy. I used a CAM when I was leasing space. Would this be considered different since the land would be purchased and owned by different people, but we share the parking and general landscaping? thank you.

I think it would still be CAM...It would still be Common Area Maintenance.

 

[quincy]

Thank you Quincy. I used a CAM when I was leasing space. Would this be considered different since the land would be purchased and owned by different people, but we share the parking and general landscaping? thank you.

A CAM agreement can be used for the maintenance of any common areas.

 

[adjusterjack]

Thank you Quincy. I used a CAM when I was leasing space. Would this be considered different since the land would be purchased and owned by different people, but we share the parking and general landscaping? thank you.

You're selling separate plots. Why would there be sharing of anything?

 

[quincy]

You're selling separate plots. Why would there be sharing of anything?

He mentioned common landscaping, parking and lighting. I assume he is looking to develop a mini industrial style park?

 

[adjusterjack]

He mentioned common landscaping, parking and lighting. I assume he is looking to develop a mini industrial style park?

Like an office or warehouse condo?

Could require CC&Rs.

 

[quincy]

Like an office or warehouse condo?

Could require CC&Rs.

Or selling already-developed property on a lease.

Once the property is sold, if there is no condition on the sale, the new property owner can develop the property and maintain the property as he sees fit (e.g., have his own parking lot and landscaper).

 

[Concord Land Holdings]

Thank you all for your input. This was a rectangular plot of land (2.73 acres). A "U-shaped" parking lot was built with 2 entrance/exits to public roads. Drainage, landscaping, sidewalks, and lighting were placed around the parking lot. Now, inside of that still remains a rectangular plot that is smaller. I have already built on 1 of the 3 plots and am looking to sell the remaining 2 plots. The before mentioned items are surrounding those plots and will be used by the owners of the 2 plots. My intention is to sell the land, not lease. I am just looking to get this off my books. I am wanting an agreement in place to share the expenses in the future for repairs and maintenance on the items that are shared. You can't for example drive to the plots without passing through the parking area of another plot, so it seems to me that those items should have shared maintenance and repair expenses. thanks for additional input.

 

[quincy]

Thank you all for your input. This was a rectangular plot of land (2.73 acres). A "U-shaped" parking lot was built with 2 entrance/exits to public roads. Drainage, landscaping, sidewalks, and lighting were placed around the parking lot. Now, inside of that still remains a rectangular plot that is smaller. I have already built on 1 of the 3 plots and am looking to sell the remaining 2 plots. The before mentioned items are surrounding those plots and will be used by the owners of the 2 plots. My intention is to sell the land, not lease. I am just looking to get this off my books. I am wanting an agreement in place to share the expenses in the future for repairs and maintenance on the items that are shared. You can't for example drive to the plots without passing through the parking area of another plot, so it seems to me that those items should have shared maintenance and repair expenses. thanks for additional input.

You can include common maintenance as a condition in the property sale.

 

[Concord Land Holdings]

Thank you quincy