Q: Title company telling me I need to redeem ground rent. Is this true? Ground rent is not registered.
I am purchasing a renovated,previously vacant home in Bmore. The home was previously purchased by the Mayor and city via condemn- immed. Title and posses., then purchased by and investor who renovated it. My title company told me that I need to redeem a ground rent that was on a deed from 1967 even though that grantor lost the property to the city in 2005. The grantor was paid by the city $3600 fee simple.
A: Your confusion is understandable. Many don't apprehend that a leasehold property has TWO chains of title. One for the leasehold (what you purchased), and another for the reversionary interest (what you ground rent landlords own).
Non-registration doesn't strip the ground rent landlord of ownership.
You are not required to redeem, ever (except, perhaps, if your lender is requiring it to better secure its lien interest). You are simply at risk for a few years of back ground rent, or open liens for unpaid ground rent. Your title company will likely collect some money to hold in its escrow for a while, awaiting possible claims.
Or, you can redeem and never have to worry about unpaid ground rent, again. the price is set by a formula in the statutes, based on the age of the ground rent.
A: A title company shouldn't demand redemption, though they should make you aware if there is a ground rent that it needs to be paid. Title can (and does) routinely pass with ground rents, although redeeming can save hassle and headache down the road by eliminating the ground rent and just having a single title to the property.
Without looking at the specific title it is difficult to know what happened in a particular case (such as if the city acquired both the ground rent and leasehold interest at which point presumably the two would merge). It may help to ask follow-up questions of the title company that did the title examination.
While not legal advice I hope that this general information helps.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.