Are you thinking of buying a centrally located, older home in a downtown neighborhood? After many remodels, you may know how to bring the building up-to-code and sell at a profit. Or perhaps you’re a hobbyist with intentions to live the downtown, walkable lifestyle. Before you invest, find out whether the building is located in a historic district.
Historic Districts Created by the Municipality
Historic districts can be created at the federal, State, or municipal levels with different laws, regulations, and rules associated with each. For the average Buyer and Seller, the most onerous type of historic district is the one created by the local municipality. The intention of the municipality is the preservation of historic assets for posterity. However, the effect on home ownership can be devastating.
The police powers of the State are invoked to accomplish the purposes of the local legislation. Depending on the jurisdiction, regulatory authority can be nearly complete, down to acceptable replacement doorknobs and light fixtures. The “cachet” of a historically designated home may increase market value for some, but reduce it for others.
What cannot be denied is that a historic district designation represents an intrusion on an owner’s right to invest in and manage their property. Historic district designation status should be fully understood before the close of escrow so a market-based price can be agreed upon by Buyer and Seller.
The purchase or sale of real estate is complicated. With so much on the line, better safe than sorry!
Timely Contract Solutions
Buyers: Use TIER Plus® to perform the legal due diligence necessary to understand the exact nature of the limitations to use of a property located within a historic district. Identify a market-based offer price. Be prepared with legal options if adverse or unforeseen requirements are found.
Sellers: Use TIER Plus® to fully disclose limitations to the use of your historically designated property. Understand the ramifications of the historic designation vis-à-vis market price. Be prepared with legal options if adverse or unforeseen circumstances arise.
Use Timely Contract to avoid common problems of the real estate transaction … and to sleep better at night!
This posting is not legal advice. Legal advice is based on specific facts. This information is necessarily general in nature.