How do I separate lots that are listed on the same deed?

[sonny189]

What are the steps needed to separate two garage lots listed on the same deed as the house?
I've had offers for the lots but want to know if I decided to sell them how to sell them separated from the house. I receive a separate RE Tax bill for them in Philadelphia, Pa 19125

 

[FarmerJ]

Do you own this property free and clear of any mortgage or loans or any thing else that would have to be paid off ?

 

[FlyingRon]

If the these are already separate lots in the eyes of the city, then you can deed them to someone else. The fact that they were conveyed to you on one deed means nothing. Title to a house is not like a car title. You'd be well advised however to have an attorney draft the purchase agremeent and deeds and take care of filing them. Note, that you will have tax issues to face as well. You will need to determine what your basis in these properties is and how much gain you have in selling them.

 

[HRZ]

WIth a good amount of homework first ...in many a smaller lot situation there could be at least two big issues ...and you do not want to raise red flags or create. A deal you are unable to complete .

Irrespective of lot size and separate tax bills, you are walking on eggs to try to unmerge two contigous lots merged via common ownerhip ...IF either of the two lots would be substandard as to any current codes .

IN some cases bright $$ idea seems to be to sell off ones own parking and garages ...and your home is out of code by a problem you created . In theory you should be denied a variance for a self created problem., ifmever a variance is needed.

ABsent any issues above, it it is likely a cake walk,for any attorney doing Land Development type work to get,separated,deeds,innplace ..but confirm first .

BTW! Were I still in Phila I'd explore other options first ...there is a nasty local transfer tax plus federal state and Phila tax on gain ..plus its loss of,control over what goes into that garage space. ..i.e. An ugly new building may hurt your values. A long term lease is deemed a transfer for PA tax purposes ...but it can be darn long and not be a tax trigger ...any yes you can lease out land and somebody else can build on it ...works even on small space ...not everybody's cup of tea...but the tea cup is out there..and on some deals "parking " is ultra valuable ...or the deal may not work !

BTW if people are knocking on your door to buy your garages ...I'll bet the space is a,whole,lot,more valuable than you think it is .
.

 

[sonny189]

Thanks to all.

Thanks for the advise. There are some things I never considered. I think I'll wait a while.

 

[HRZ]

THat you can undivided two separate properties merged on one deed under common ownership is a very risky assumption without checking your facts ...big problem off it would create a substandard lot ...be careful !

Took me YEARS to unwrap exactly such a problem ...my own mother created it with supposedly one of the best attorneys in the area...and it happened again on one I was buying....be careful!

BUt it happens a lot in older areas ..owner sells off his own parking and nobody catches it .

 

[HRZ]

I do not know your situation in Fishtown ...but it's changing...

 

[FlyingRon]

While the merger doctrine holds true in many states (notably California), it does not exist in PA. There was a Supreme Court decision there that pretty much said if you (or the municipality) wants the lots to be "merged" they need to be physically merged, not just implied by common ownership.

But I agree that there's also a mess of potential zoning issues going on there ...

 

[FarmerJ]

You may want to learn from your city at this time how many square feet one must have in order to build a home , EG where I used to live one had to have a 100 ft by 50 ft lot to build a new house (5000 sq ft ) just so you know what it is and re check again later for say zoning changes or city up coming city ordinance changes that might change the lot size requirements should you think about selling those in a few years or so. ( curious ? had you ever asked what the impact would be to your homes property taxes with out those lots ? ( and what it would be if they were formally combined into your homes parcel so you no longer had individual parcel numbers and individual property tax bills? Also if your in a more developed urban area to look for so called comparable properties land wise to see if it would give you a edge when you are ready to sell every thing since having that so called triple wide lot might make it a lot more valuable to buyers.

 

[HRZ]

Sort of true...as to merger on one deed ...but this is the stuff that makes for big legal bills ....and its not a case of a home with a empty possibly buildable lot next door ..but per OP a home with 2 garages next door ....IF those garages were used by OP in the operation of his home..he or some prior owner may have merged them ...and I'd want keen Phila legal eyes on my fact pattern.

One of the Phila ones ...one deed describes two tracts three blocks apart...home on one...only garage on other , two tax bills. ( My pal who practices this stuff says it's a non issue and the home has adaquate parking wo the garage...but your facts may differ ) .

 

[justalayman]

Here is a case to address the case at hand:

http://www.landuselawinpa.com/court/011005_springfield.shtml


There is no automatic merging of the lots if the lots are each able to be a conforming free standing lot on their own regardless of the fact there is not only common ownership but all included on a single deed


Apparently the merger doctrine is alive and well in PA.

 

[HRZ]

THe doctrine of merger is alive and well IF the OPs facts fit the picture that which we do NOT have before us that each of the lots on its own meets applicable codes .

A common problem is that many a code requires off street parking, in my area , 2 spaces minimum per single family residence ...and many an older home does not meet that code on the lot upon which it stands ...but if one does have parking next door on lot owned by exactly the same owner ...it's problematic to separate the lots and create one or more new substandard lots **************.lots of gamesmanship on such stuff.in Phila and PA in general .

The points can become absurd...one near me attempts to use Parking over 1800' away , another is at least that far away but proposes to run shuttles ...but these are very deep pocket developers .with legions of legal talent on call.

Not to far from OP, one of my friends is knocking down the back of her Phila home to provide off street parking ..she happens to xbe a very smart lawyer who specializes in real estate investments .