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  1. #11
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    Jan 2006
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    Default Re: How Does House Front Foot Fee Impact Real Estate Transaction

    Quote Quoting budwad
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    I have already said that a debt is not a lien. That a lien was in support of a debt.

    Nothing but trolling once again. Please, keep it up. I'm going to get you moderated. Stand by
    But you went on to make an incorrect statement in the post where you accepted you were wrong when you said a debt and a lien are the same thing. I was merely correcting your error.

  2. #12
    Join Date
    Sep 2015
    Location
    Maryland, USA
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    37

    Default Re: How Does House Front Foot Fee Impact Real Estate Transaction

    Quote Quoting budwad
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    I misconstrue nothing. You said exactly what I said. A special assessment on property for the benefits they receive from an infrastructure project the cost of which is apportioned to those properties that benefit is perfected by the local jurisdiction selling bonds to fund the project. The assessment to each property becomes a lien on the property.

    In Maryland they call it special taxing districts but it has nothing to do with taxes pseudo or otherwise.

    I served as the chairman on four boards of special assessment for water infrastructure projects when I was in public office. That was NJ but the laws are very similar. What they call the payback doesn't mean much being a special assessment or payment to a special tax district. It's a lien on the property to pay back their share of the bonds.
    Thanks for weighing in . Will there be a legal document recorded with County/state with agreed terms like contract?

    I did talk with Baltimore County permits, water & Sewage , utility, budget & Finance, assessment, and Property tax. No one knows about such documentation.

    I did search on MD land records, I found the DEED for the property, attached mortgages, but I did not find a document to support "FRONT FOOT FEE" arrangement among land registry records.

    We know "FRONT FOOT FEE" arrangement is a DEBT attached to property that has a LIEN. Why is not part of property records?

    What is the entity within county/state register/record such instrument ("FRONT FOOT FEE")?

    Thanks for guidance.

  3. #13
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    Default Re: How Does House Front Foot Fee Impact Real Estate Transaction

    Per 32-4-311 notice must be provided to you in the sales contract. It is also required to be included on the plat recorded with the municipality. It appears the notice has been provided as required

    From your first post:
    The property is subject to fee or assessment charged under authority grated to developer pursuant to section 32-4-310 of the Baltimore County Maryland code. Which purports to cover or defray the cost of installing all or part of the public water or sewer facilities constructed by the developer of the sub division known as .... This fee or assessment is $500 - 900/year. .
    This is the statutory language of the required notice:

    Notice to purchasers of real estate in Baltimore County.
    This property is subject to a fee or assessment charged, under the authority granted to developer pursuant to 32-4-310 of the Baltimore County Code, which purports to cover or defray the cost of installing all or part of the public water or sewer facilities constructed by the developer of the subdivision known as ________. This fee or assessment is $________, payable annually in the month of________ to (name and address) (hereinafter called 'lienholder') until (date). There may be a right of prepayment or discount for early payment which may be ascertained by contacting the lienholder. The fee and assessment is a contractual obligation between the lienholder and each owner of this property, that runs with the land, and is not in any way a fee or assessment of Baltimore County.”
    Annual notice to affected homeowners is required to be provided by the creditor. (Same section of law). I believe an accounting of the current amount of debt is also required

    c) Annual notification. The applicant shall provide each property owner subject to the fee or assessment with annual notification of:
    (1) The annual amount due;
    (2) The remaining term; and
    (3) The total amount of any outstanding principal balance.


    If you have questions, I suspect asking the homeowner (through your agent) for the contact info of the holder of the debt would be your best direction or you can refer to the information provided in that notice and contact the stated payee, which I would presume would be the same as the owner would provide.

    as to where the associated lien is recorded: your real estate agent should be able to provide you with that info. If yours can’t, ask the sellers agent. If they don’t know, I would question their competence.

    a bit more research shows there simply may not be a lien at all but only the debt:


    [COLOR=rgba(0, 0, 0, 0.701961)]
    In Select Portfolio Servicing, Inc. v. Saddlebrook West Utility Company, LLC et al, the Court of Appeals of Maryland considered a Real Estate Developer and its private Utility Company’s assertion of a lien for water and sewer infrastructure costs under a Declaration recorded in the land records.
    The Court determined that the Declaration providing for annual assessment payments to finance the Developer’s construction of such infrastructure did not create a lien itself. Rather, the Declaration authorizes the establishment of a lien pursuant to the Maryland Contract Lien Act, Md. Code, Real Property 14-201 et seq. (“MCLA”), which sets forth procedures to obtain and enforce a statement of lien after a respective homeowner fails to pay the required assessment. “A lien is not created on the date of the recording of the contract because presumably it has not yet been breached and there are no damages to secure.” Consequently, the recorded Declaration itself was not a lien, and therefore was not entitled to priority over a deed of trust.


    it appears there is no lien until a property owner breaches the contract and the creditor acts as the law requires so a lien will be created. I presume that lien would be recorded and attached to the property at the register of deed or whatever the office that records such records is called.


  4. #14
    Join Date
    Sep 2015
    Location
    Maryland, USA
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    37

    Default Re: How Does House Front Foot Fee Impact Real Estate Transaction

    Thanks for your reply. From Seller, I do see the statutory language of the required notice. It did not provide "The total amount of any outstanding principal balance."

    Is it acceptable to add language to clear outstanding principal balance, LIEN as a contingency in buyer CONTRACT doc?

    Thanks for your guidance.

  5. #15
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    Default Re: How Does House Front Foot Fee Impact Real Estate Transaction

    Add language to what? Do you mean can the seller fill in the total and all is well? Sure. Often times totals of various debts aren’t known and they actually can change during the contract period until the date of closing. Since it may change during the sale process, filling in the blank with an given number could result in an issue once it comes to closing since that number may no longer be correct.

    Ya lost me with the mention of lien.

  6. #16
    Join Date
    Sep 2015
    Location
    Maryland, USA
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    Default Re: How Does House Front Foot Fee Impact Real Estate Transaction

    Thanks for your response.

    From Seller, I do see the statutory language of the required notice. It did not provide "The total amount of any outstanding principal balance."
    As the above number is not given, I am not sure whether they paid all payment related to Front Foot FEE on time or defaulted on payment. It is not clear , whether the lender is going to consider this Front Foot FEE Debt (defaulted portion if any ) part of Mortgage.

    If there is a default on Front Foot FEE, it will sit as additional LIEN on this property.

    I was asking about an additional clause/rider to add to release any outstanding debt as a contingency in buyer CONTRACT doc.

    Thanks for the guidance.

  7. #17
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    Jan 2006
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    Default Re: How Does House Front Foot Fee Impact Real Estate Transaction

    Unless you intend on including it in your mortgage and paying off the debt, there is no reason the lender should care about it. It is not included in the sales price.

    Neither the buyer nor seller can remove this debt from the property. It simply didn’t work like thst.

    If you want to know the current amount of the debt remains, ask for a specific number. Understand that could change as time passes.


    I understand aboit the lien. I’m the one that discovered it is not technically a lien at this point but merely a debt owed by the landowner that is attached to the property and runs appurtenant to the land. The creditor can seek a lien to to ensure payment of the delinquent portion when the property sells or even foreclose prior to thst point if the owner doesn’t sell.

  8. #18
    Join Date
    Nov 2013
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    6,208

    Default Re: How Does House Front Foot Fee Impact Real Estate Transaction

    The lien provision in the special assessment law is the same as for ad valorem taxes. The lien is on the property as a matter of law.

  9. #19
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    Default Re: How Does House Front Foot Fee Impact Real Estate Transaction

    Quote Quoting budwad
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    The lien provision in the special assessment law is the same as for ad valorem taxes. The lien is on the property as a matter of law.
    Nope. There is no lien until the payments are delinquent and the creditor files for s lien.



    Oh, and I did post the law on this matter a couple posts back.


    I guess your presence here is simply because of the man crush you have on me. I’ve told you before and I’ll tell you again: I don’t condemn you because you like guys but I’m not into that sort of thing now stop chasing me around the forum trying to get my attention.


    and now I’ll pull a budwad:

    post the law budwad. Your posts without support are pathetic. You simply bloviate and post junk with no law to support it.

    And to help you find it, I’ll repost it here for you


    [QUOTE]
    The Court determined that the Declaration providing for annual assessment payments to finance the Developer’s construction of such infrastructure did not create a lien itself. Rather, the Declaration authorizes the establishment of a lien pursuant to the Maryland Contract Lien Act, Md. Code, Real Property 14-201 et seq. (“MCLA”), which sets forth procedures to obtain and enforce a statement of lien after a respective homeowner fails to pay the required assessment. “A lien is not created on the date of the recording of the contract because presumably it has not yet been breached and there are no damages to secure.” Consequently, the recorded Declaration itself was not a lien, and therefore was not entitled to priority over a deed of trust[/QUOTE]

  10. #20
    Join Date
    Nov 2013
    Posts
    6,208

    Default Re: How Does House Front Foot Fee Impact Real Estate Transaction

    It may be different with a contractor assessment but a local jurisdiction does not have to apply for or file for a lean on a property assessment. It's automatic when the assessment is levied.

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