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sale of house subject to city condemnation

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L

la199z

Guest
What is the name of your state? New York
I bought the property underlying my house from NYC in 1984. The transaction was subject to a condemnation clause, as were all such sales of NYC propety in the area. The survey reflects old NYC plans for potential street widenings in the area which would require condemnation of various properties, including my own. I don't know if the NYC planning board ever decided to drop its plans to widen the streets. I am now trying to sell the property. A prior buyer encountered problems obtaining title insurance as a result of the condemnation clause. A large percentage of the homes in the area are subject to the condemnation clause. It seems that houses are bought and sold despite the potential condemnation. Local homeowners regard the potential for condemnation as a "fiction" given its old origins. How do I assure a potential buyer of my house that they can safely purchase the home without realistic fear of condemnation? Is the house insurable for purchase price/market value? How do I find out if the NYC planning board dropped its plans for widening the road? Thank you for your thoughts and guidance. Much appreciated.
 


HomeGuru

Senior Member
la199z said:
What is the name of your state? New York
I bought the property underlying my house from NYC in 1984. The transaction was subject to a condemnation clause, as were all such sales of NYC propety in the area. The survey reflects old NYC plans for potential street widenings in the area which would require condemnation of various properties, including my own. I don't know if the NYC planning board ever decided to drop its plans to widen the streets. I am now trying to sell the property. A prior buyer encountered problems obtaining title insurance as a result of the condemnation clause. A large percentage of the homes in the area are subject to the condemnation clause. It seems that houses are bought and sold despite the potential condemnation. Local homeowners regard the potential for condemnation as a "fiction" given its old origins. How do I assure a potential buyer of my house that they can safely purchase the home without realistic fear of condemnation?

**A: you can't.
*************


Is the house insurable for purchase price/market value?
**A: yes since any future condemnation action has no effect on hazard insurance, which is based on replacement cost of the improvements, not the land.
Title insurance is a different animal.
**************

How do I find out if the NYC planning board dropped its plans for widening the road?

**A: Hmmmm, I would say a safe guess would be to inquire of them in writing.
And give a copy of their response to a Buyer along with your disclosure statement.
*************

Thank you for your thoughts and guidance. Much appreciated.

**A: no problem.
 

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