Real Estate Filter: What kind of document do I need to record?
December 2, 2014 12:56 PM Subscribe
My neighbor and I own houses which are covered by a set of restrictive covenants we may be interested in dissolving. I want to know exactly what we need to do. Details within.
You may or may not be a real estate lawyer, but you are not my real estate lawyer. I understand that any answers posted here do not constitute legal advice.
The two properties in question are located in the US state of Maryland.
My house and my next-door neighbor's house are covered under a document containing a set of "restrictive covenants," put in place by the original builder of our houses. My wife and I are interested in dissolving these "restrictive covenants," and my neighbor has previously also expressed interest in doing so.
What I think is the relevant language within the document follows:
"18. All the covenants and restrictions contained herein shall be in perpetuity, but on and after twenty (20) years from the date hereof, a majority of the then owners and the leasehold or fee simple interests (but not reversionary or mortgagee interests) of all the Lots subject to the within covenants, conditions and restrictions may cancel, annul or abrogate any and all of the covenants and restrictions, by a written instrument duly executed and properly recorded among the Land Records of [Foobar] County. The Developer may waive any of the within covenants, conditions or restrictions by written instrument duly executed and recorded as aforesaid."
The document itself is dated in early November 1988, but has a recording date stamped in late November 1988. 20 years from the recording date would have been late November 2008.
What this sounds like to me is that I, my wife, my neighbor, and my neighbor's wife need to draw up a signed and notarized document saying, in effect, "Whereas, the undersigned parties, representing 100% of the current owners of the lots covered by the document recorded on Book X Page Y of the land records of Foobar County, and whereas the current date is twenty-six (26) years from the date of recordinng of the aforesaid restrictive covenants, we, the undersigned, hereby cancel the restrictive covenants in accordance with clause number 18 thereof."
Do we need to hire a real estate attorney to do draw up such a document? If so, what is a reasonable fee for those services? (I understand there are document recording fees which would apply whether or not we use the services of an attorney.) If we don't need an attorney, what language needs to be used in the document?
You may or may not be a real estate lawyer, but you are not my real estate lawyer. I understand that any answers posted here do not constitute legal advice.
The two properties in question are located in the US state of Maryland.
My house and my next-door neighbor's house are covered under a document containing a set of "restrictive covenants," put in place by the original builder of our houses. My wife and I are interested in dissolving these "restrictive covenants," and my neighbor has previously also expressed interest in doing so.
What I think is the relevant language within the document follows:
"18. All the covenants and restrictions contained herein shall be in perpetuity, but on and after twenty (20) years from the date hereof, a majority of the then owners and the leasehold or fee simple interests (but not reversionary or mortgagee interests) of all the Lots subject to the within covenants, conditions and restrictions may cancel, annul or abrogate any and all of the covenants and restrictions, by a written instrument duly executed and properly recorded among the Land Records of [Foobar] County. The Developer may waive any of the within covenants, conditions or restrictions by written instrument duly executed and recorded as aforesaid."
The document itself is dated in early November 1988, but has a recording date stamped in late November 1988. 20 years from the recording date would have been late November 2008.
What this sounds like to me is that I, my wife, my neighbor, and my neighbor's wife need to draw up a signed and notarized document saying, in effect, "Whereas, the undersigned parties, representing 100% of the current owners of the lots covered by the document recorded on Book X Page Y of the land records of Foobar County, and whereas the current date is twenty-six (26) years from the date of recordinng of the aforesaid restrictive covenants, we, the undersigned, hereby cancel the restrictive covenants in accordance with clause number 18 thereof."
Do we need to hire a real estate attorney to do draw up such a document? If so, what is a reasonable fee for those services? (I understand there are document recording fees which would apply whether or not we use the services of an attorney.) If we don't need an attorney, what language needs to be used in the document?
I would hire a real estate lawyer and do this correctly. If anyone ever needs to sell property or deal with this....it's a significant encumbrance.
posted by Ruthless Bunny at 1:08 PM on December 2, 2014
posted by Ruthless Bunny at 1:08 PM on December 2, 2014
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I would still recommend using a real estate lawyer. Most lawyers charge anywhere from $300-$600 for a closing when you buy a house, which includes the service of filing the appropriate paperwork - although they still pass on recording fees to you as well as their own fee.
I imagine you and your neighbor could each pay somewhere in the ballpark of $100-$200 to have a lawyer draw it up and file it for you.
The reason I recommend using a lawyer is that you want to make sure you are filing the correct instrument, with the correct language, and filing it in the correct way. If one or more of these things are done wrong, it could make life difficult down the road for you, your neighbor, and/or future owners of either lot.
posted by trivia genius at 1:06 PM on December 2, 2014