August Mack Environmental, Inc. and The Schneider Corporation are pleased to introduce RE-Start, a value-based service for owners of foreclosed or distressed real estate to help put them in the best position to sell quickly when they are ready to market the property. The following professional services are part of the RE-Start package:
- Property Condition Assessment and Due Diligence
- Phase I Environmental Assessment
- ALTA/ACSM Land Title Survey
- Title Insurance
- Appraisal
On this blog, experts from both August Mack and Schneider will provide brokers, lenders, investors and owners with the resources and information they need to quickly sell their foreclosed or distressed property.
Did you know there are a variety of products and services that title insurance companies offer? Sometimes your situation may not warrant a title insurance policy or even a complete title search.
A Current Valid Deed Report merely provides the current ownership and tax information and nothing further.
A Search Report provides information about the real estate over a specific time period which is set by the party ordering the report. It provides current ownership and tax information and identifies open liens and encumbrances files against the real estate. No title insurance, however, is implied or provided.
The Title and Encumbrance Report covers a 20 year period and identifies current ownership, property tax information, liens, encumbrances, easements, judgments and other information found that affects title. No title insurance is implied or provided with this report.
The Title Guaranty warrants that the public record shows title to be vested in the party named in the guaranty, such to the liens and encumbrances listed. It does not insure against title defects, and there is no coverage for marketability or access, for example, but it does provide limited insurance coverage.
The RE-Start team can assist in determining the most applicable product given your current situation.
We will explore title insurance commitments and policies in a future posting!
I was idly web surfing the other day for more information on Indiana Foreclosure law and receiverships, when I ran across this gem of a blog spot...Check it out:
http://commercialforeclosureblog.typepad.com/
For those who have not seen, or do not have a copy of, the current (2005) Minimum Standard Detail requirements for ALTA/ACSM Land Title Surveys,
the following link will take you to a PDF of the standards on the website of the American Congress on Surveying and Mapping.The National Society of Professional Surveyor's committee that deals with these standards will be collaborating with the corresponding ALTA committee to revise these standards over the next 18 months. A new version is expected around the first of 2011. Until that time, this 2005 version is still current.
A Property Condition Assessment (PCA) is generally undertaken in order to assess the integrity of any number of improvements and systems on improved real estate. These might include, for example, the roofing, HVAC, plumbing and electrical systems, exterior walls, and ADA compliance. The specific items that are included in any given PCA; however, are a function of the needs and interests of the client.
The PCA report will list and recommend solutions to problems or deficiencies that were identified during the assessment. One recent PCA conducted by the RE-Start team identified a problem with the roof membrane, code violations in the electrical closet and several problem areas in the asphalt parking lot. The report suggested steps and cost estimates to mitigate the problems.
Other items of interest might relate to the client's intended future use of a property, such as expanding the size of the building, and the specific issues that might be encountered during such the expansion.
While a Property Condition Assessment cannot eliminate risk in the purchase of a property, it will certainly reduce that risk by putting the client on notice of any variety of concerns and potential problems.
The Phase One Environmental Site Assessment (ESA) is, was and always will be a key component in evaluating environmental conditions at a property. Used to identify potential and/or existing recognized environmental conditions (RECs) at a property (both developed and undeveloped), the Phase One Site Assessment should be a sought by buyers, sellers, lenders, developers and brokers. Identification of potential on and offsite environmental due diligence concerns can be identified through interviews, a site reconnaissance and historical research of property.
Although a Phase One ESA is not legally required, without a Phase One a purchaser or receiver of a property does not obtain Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) protection and likely acquires all legal liability associated with any preexisting environmental conditions (and contamination) at the property. Because of this, lenders typically require a Phase One prior to a property transaction, as site contamination cleanup expensive can often exceed the value of a property.
It's important to note that there are different options available for Environmental Site Assessments and Environmental Due Diligence depending on specific project needs, including:
- Phase I Environmental Site Assessments "All Appropriate Inquiry" (ESAs)
- Transaction Screen Assessments
- Phase I Site Assessment Updates
- Peer Review Assessments
- Desktop Reviews
Check into options to custom fit your project.
Due Diligence covers a wide variety of issues that may be of concern to an owner and/or potential buyer.
- Where are the nearest utility connections?
You may be looking at a site that appears wonderfully suited to a particular type of development, but if the nearest sanitary sewer is a half mile away or requires a lift-station to access, the costs may be prohibitive. - Who are the adjoiners and what plans do they have?
In some cases, the rezoning of an adjoining property can impact the use and setback requirements on your property through no action of your own! - What is the attitude of the jurisdiction towards the use you have contemplated for your property?
There may be moratoriums on development for a variety of reasons, or simply an anti-development bent in the community.
There are myriad similar questions that need to be answered in order to assess the potential of a piece of real estate. An experienced team wants to understand the objectives of the owner/developer so that the appropriate investigation takes place during due diligence.
Welcome to the August Mack/Schneider Corporation RE-Start blog.
Several times a week, we will be posting information helpful to owners of foreclosed or distressed real estate as they assess their options in marketing or redeveloping their real estate assets.
My name is Gary Kent. I am a Land Surveyor with The Schneider Corporation and I have served our company in a variety of roles since 1983. Much of my time is spent training, mentoring and teaching. I have taught part-time at Purdue University and Purdue in Indianapolis for 7 years, and I also have presented programs in more than 40 states and several European countries over the last few years. The ALTA/ACSM Land Title Survey standards also are one of my professional responsibilities; I have chaired or co-chaired the NSPS/ACSM committee responsible for those standards for approximately 10 years.
August Mack and The Schneider Corporation look forward to providing you with helpful information in the areas of Environmental Assessments, due diligence, Property Condition Assessments, Land Title Surveys, title insurance and appraisals. If there are any specific topics you would like addressed, please let me know.
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