Legal Question in Real Estate Law in California
Can you separate two properties if they share another building
Dear Sir - I purchased an 8-unit apartment building that consists of two 4-plex's that that face each other. I had to buy it this way because the owner claimed a third building (the laundry facility) was built right over the center line, with each room sitting over its own parcel. The strange thing is that each 4-plex has its own separate legal parcel number. I would eventually like to split them and sell them separately ..... I guess if it were necessary I could renovate the laundry building, basically slicing it down the middle and creating two separate buildings, but I wanted to see if this is truly necessary to accomplish my goal. Thank you for any input!
1 Answer from Attorneys
Re: Can you separate two properties if they share another building
Yes, this is possible, and in fact I am a co-owner of an investment property with exactly the same situation. The previous owner assembled a large tract of land by buying adjoining parcels, then built the improvements without regard to the lot lines. My situation was created by a governmental agency's construction work, but I suppose a private developer could create the same situation.
I also think in most cases (a) the building permit would be denined, or (2) the separate legal parcels would be merged, making the property indivisible by separate sales.
You should verify by survey where your lot line runs, and maybe first apply to the county for "administrative certificates of compliance" attesting to the continuing recognition of the parcels as legally separate under the Subdivision Map Act. Having "separate legal parcel numbers" is not sufficient (I assume you mean Assessor Parcel Numbers).
The solution, if you truly do have separate parcels, is to do a lot-line adjustment. This will require a survey and an application to the county.
Any application or process you initiate with the county should be done only after consulting a local real-estate attorney who is very familiar with your county's policies regarding merger of adjoining parcels under common ownership, and lot line adjustment policies in general.
Finally, you should refresh your memory on what your title insurance says you have, i.e. is the fact of two separate legal parcels insured or disclaimed?
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