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Real estate - option to buy - muddy title

My client has an option to buy a building. He has multiple dingbat12/14/18
Agree with what everyone said - filing the notice to exercis nycatt12/27/18
What lease? dingbat12/27/18
Most options to buy are contained in a long term leases. Tha nycatt01/01/19
A granted B her interest in a real estate project and B gran dingbat01/01/19
That doesn't sound like an option to buy real property. tha nycatt01/01/19
It's an option to buy the property. Believe it or not, thes dingbat01/01/19
Yeah, made a mistake. Sorry! Lease is on the list of stuff nycatt01/01/19
funny thing is, I'd practically take this matter on for free dingbat01/02/19
The good news: this guy desperately needs a competent lawyer nycatt01/02/19
yes, and I've been making that clear dingbat01/02/19
Do you have a written option agreement? Based on your jurisd therewillbeblood12/14/18
^ This. I would also file with the county clerk the written jeffm12/14/18
I would think you could have your client sign and record a " 2tierreality12/15/18
I think the answers here are good. It might vary state to st jorgedeclaro01/02/19
the option is in writing - just about the only thing in the dingbat01/02/19
dingbat (Dec 14, 2018 - 9:32 am)

My client has an option to buy a building. He has multiple issues with the owner and does not expect the option to be honored without a fight

How do I record that the option exists and has been exercised?
The goal is to at least muddy the title so the current owner can’t mortgage or sell the property as soon as my client tries to exercise the option

Thanks

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nycatt (Dec 27, 2018 - 4:07 pm)

Agree with what everyone said - filing the notice to exercise is a good idea; lis pendens the minute you file the suit is must (would be malpratice not to). You could file the lease itself (at least in new york it is common where a lease is for entire building or a substantial part of the building, but permissible for any lease at all that is a year+).

You are right that you need to muddy title to stop title insurance and cock block mortgages.
I have litigated this sort of thing in NYC a few times. Be sure to read the lease carefully and do each notice perfectly. You could ultimately compel a sale if everything is done correctly. If you don't, all your work can be summarily set aside.

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dingbat (Dec 27, 2018 - 8:05 pm)

What lease?

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nycatt (Jan 1, 2019 - 10:26 am)

Most options to buy are contained in a long term leases. That was my assumption for your situation, since in ten year of real estate practice, those have been the only options to buy I have dealt with. What is your situation?

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dingbat (Jan 1, 2019 - 11:32 am)

A granted B her interest in a real estate project and B granted A an option to buy the interest back for the same price.

Lots of other stuff going on that I can’t post in public, but with multiple disagreements heading toward litigation, we want to muddy the title on the real estate.

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nycatt (Jan 1, 2019 - 8:09 pm)

That doesn't sound like an option to buy real property. that sounds like an option to own an interest in a corporate entity that owns and/or develops real property. Does the client have an interest in real property or an interest in the entity that owns the property?

If it is only an option to own a portion of real property, it is a little harder (er, maybe not permitted) to cloud the chain with contract. Best thing is to file a quick lawsuit and attach lis pendons, as others have suggested.

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dingbat (Jan 1, 2019 - 8:31 pm)

It's an option to buy the property. Believe it or not, these idiots didn't bother setting up any corporate entities for most of their joint ventures.

I think you made a mistake in what you wrote. you stated it would be difficult to cloud the chain if it was an option to own a portion of real property. I'm pretty sure you meant it would be difficult if it was an option to own a portion of the entity.

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nycatt (Jan 1, 2019 - 9:12 pm)

Yeah, made a mistake. Sorry! Lease is on the list of stuff you can file, but not contracts or options. see https://a836-acris.nyc.gov/EDS/Overview/How%20To%20Process%20ACRIS%20Daily%20File%20v1%207.htm



Wow - as a best practice, RE is always held in limited liability entity these days. I don't even see limited partnerships since the 90s. Please dear god don't let these guys run a tab on you. I still think filing a quick and dirty lawsuit (you can make it short and amend after they answer) with lis pendens is the way to go here. But geez, I am now more worried about you getting stiffed by this moron than than the moron's problems.

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dingbat (Jan 2, 2019 - 1:31 am)

funny thing is, I'd practically take this matter on for free (I'm not, obviously), because I'm more interested in potential business down the line.

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nycatt (Jan 2, 2019 - 11:55 am)

The good news: this guy desperately needs a competent lawyer.

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dingbat (Jan 2, 2019 - 10:35 pm)

yes, and I've been making that clear

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therewillbeblood (Dec 14, 2018 - 9:56 am)

Do you have a written option agreement? Based on your jurisdiction, you might be able to just file that with the county recorder. Otherwise, the second things look like they're going south, file a lis pendens.

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jeffm (Dec 14, 2018 - 11:19 am)

^ This. I would also file with the county clerk the written notice of your client's exercise of its right.

Go with a lis pendens only when suit has been filed (obviously).

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2tierreality (Dec 15, 2018 - 8:49 am)

I would think you could have your client sign and record a "notice of interest" that states the basic terms of his option interest in the real estate and the underlying document that created it.

To me this is similar to to when there is a long real estate installment contract and the parties don't want to record the entire document, so a notice of interest is recorded instead.

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jorgedeclaro (Jan 2, 2019 - 12:17 pm)

I think the answers here are good. It might vary state to state but the key is to get something of record assuming you’re in a race-notice state. Make sure your guy is right though. If he can’t prove the option, what you’re doing is slander of title.

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dingbat (Jan 2, 2019 - 8:28 pm)

the option is in writing - just about the only thing in the whole mess that is in writing.
My state requires strict compliance for execution of the option, so we're going to do it perfectly, then record the existence of, and exercise of, the option, before the other party has a chance to even react

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