psinglet
Mar 15, 2007, 01:23 PM
Okay, this gets complicated. I will try to keep it as simple as possible. I have inherited this problem from my Dad, who is in his 80s and is in failing health.
About 30 years ago, my father and his five siblings (living in Texas and Oklahoma) inherited property (a gas station) in Oregon from a distant aunt, which was leased to an individual. For many years the six siblings (and eventually heirs of the siblings) received and equally shared the lease revenues from the property. Eventually, the oil company discontinued the lease. At that point, the environmental department of Oregon required the tanks be removed from the property. The property was cleaned up as much as possible without destruction of the building. A total clean bill of health cannot be given to the property because more remediation could be required should the building be destroyed.
For a few years, the property was leased to another business with no problems. Eventually a purchaser was found who would accept the property “as is.” In 1998, the property was sold to the buyer for $33,000. To further complicate matters, because of disagreements between the siblings (4 siblings vs. 2), the property was “re-sold” to the buyer in 2002. I have a copy of a sales agreement with a new purchase price of $22,000 which appears to be set up in four parts. I am assuming there is a second agreement, with the additional $11,000 owed to the remaining two siblings. None of the “four siblings” side recalls much of the second sale, and the “two sibling” side refuses to communicate with the other siblings.
The buyer made fairly regular payments until August, 2004. From that point on the buyer has made no payments. There is still a balance of approximately $4800 owed on the contract. Taxes have not been paid on the property since 2004, and there is currently approximately $1800 owed in back taxes. The tax record shows the current known address of the buyer, and shows no mortgage holder for the property. Attempts by mail have been made to contact the buyer. Letters are not responded to and registered mail is not signed for. According to the 2002 sales agreement, it appears the buyer has defaulted on the property. A notarized sales agreement addendum dated September, 2002 states: “It is understood and agreed that should the purchaser make default on the payment of said above mentioned amount, or any installment thereof, for a period of sixty (60) days then and in that event seller may declare said contract in default, and may retain all money paid by purchaser to seller as liquidated damages.for the breach of said contract. In the event of such default, purchaser hereby agrees to vacate said property and restore possession of same to seller.” (Note there is a period in the addendum between “damages” and “for”).
Technically, I guess the siblings could foreclose on the property and take it back. We do not know if any activity is taking place on the property. The problem is, the siblings and heirs (at least on the “four sibling” side) do not want to take back over the property, with back taxes owed and possible future environmental problems, and are willing to cut their losses and get out from under the property. So, getting to the point, I guess my questions are:
1. My father, who currently physically holds the deed, could sign over the property to the buyer. Could the buyer refuse the deed and revert the property back to the sellers?
2. Could the siblings sign the property over to the county and allow them to sell the property for back taxes? Would this possibly put them back on the hook for future environmental problems?
3. Should we simply let the current situation continue and let the county eventually foreclose against the buyer? Could the environmental problems revert to the sellers in this situation?
4. Should a lawyer get involved? In Texas or Oregon?
Thanks in advance!
Pat Singletary
About 30 years ago, my father and his five siblings (living in Texas and Oklahoma) inherited property (a gas station) in Oregon from a distant aunt, which was leased to an individual. For many years the six siblings (and eventually heirs of the siblings) received and equally shared the lease revenues from the property. Eventually, the oil company discontinued the lease. At that point, the environmental department of Oregon required the tanks be removed from the property. The property was cleaned up as much as possible without destruction of the building. A total clean bill of health cannot be given to the property because more remediation could be required should the building be destroyed.
For a few years, the property was leased to another business with no problems. Eventually a purchaser was found who would accept the property “as is.” In 1998, the property was sold to the buyer for $33,000. To further complicate matters, because of disagreements between the siblings (4 siblings vs. 2), the property was “re-sold” to the buyer in 2002. I have a copy of a sales agreement with a new purchase price of $22,000 which appears to be set up in four parts. I am assuming there is a second agreement, with the additional $11,000 owed to the remaining two siblings. None of the “four siblings” side recalls much of the second sale, and the “two sibling” side refuses to communicate with the other siblings.
The buyer made fairly regular payments until August, 2004. From that point on the buyer has made no payments. There is still a balance of approximately $4800 owed on the contract. Taxes have not been paid on the property since 2004, and there is currently approximately $1800 owed in back taxes. The tax record shows the current known address of the buyer, and shows no mortgage holder for the property. Attempts by mail have been made to contact the buyer. Letters are not responded to and registered mail is not signed for. According to the 2002 sales agreement, it appears the buyer has defaulted on the property. A notarized sales agreement addendum dated September, 2002 states: “It is understood and agreed that should the purchaser make default on the payment of said above mentioned amount, or any installment thereof, for a period of sixty (60) days then and in that event seller may declare said contract in default, and may retain all money paid by purchaser to seller as liquidated damages.for the breach of said contract. In the event of such default, purchaser hereby agrees to vacate said property and restore possession of same to seller.” (Note there is a period in the addendum between “damages” and “for”).
Technically, I guess the siblings could foreclose on the property and take it back. We do not know if any activity is taking place on the property. The problem is, the siblings and heirs (at least on the “four sibling” side) do not want to take back over the property, with back taxes owed and possible future environmental problems, and are willing to cut their losses and get out from under the property. So, getting to the point, I guess my questions are:
1. My father, who currently physically holds the deed, could sign over the property to the buyer. Could the buyer refuse the deed and revert the property back to the sellers?
2. Could the siblings sign the property over to the county and allow them to sell the property for back taxes? Would this possibly put them back on the hook for future environmental problems?
3. Should we simply let the current situation continue and let the county eventually foreclose against the buyer? Could the environmental problems revert to the sellers in this situation?
4. Should a lawyer get involved? In Texas or Oregon?
Thanks in advance!
Pat Singletary