Advice on splitting property

[oceanfamily]

Hi There, we are looking for advice from others that may have been in our situation. We live on property that is shared with my in laws. As it stands right now they live in the main house and we brought in a manufactured home that is considered an accessory apartment. We are wanting to split the property and become our own main house and then get a tiny house to put on our side. We have a loan on the property that is in all of our names. How would this work? Wondering if as long as one of the sides appraises for what is left owing on the property it should be ok. Anybody else been through this or have advice?

[Lainey]

Have you checked with authorities to see if splitting the property is feasible? May be zoning regs that could prohibit this, e.g., minimum of x amount of square footage per residential dwelling.

[oceanfamily]

Yes we can.

[razz]

There are so many considerations to keep in mind. Your municipality with its services has to agree to supply water, sewage etc., any easements already in existence, survey, transfer of title. Can you contact a real estate lawyer to steer you through this because each situation is so different in each municipality.
When your in-laws sell their property which will happen, sooner or later, after you have split from it, what protection/buffer do you need for your enjoyment of your home?

[ToomuchStuff]

The next step would be if you qualified for "your land" financially and your institution was good with it, as it sounds your property would be considered undeveloped land and may not qualify for a traditional mortgage, but a normal loan as it is just for land.

[flowerseverywhere]

Call an attorney who knows the laws of your state.

[JaneV2.0]

I should turn on the lights, I guess--I read this caption as "advice on spitting properly..." :D
I have nothing more to say on the subject. I'll show myself out.

[LDAHL]

Real property listing is part of my local government bureaucratic empire. I can tell you that we often see problems with parcel splits within families that may not emerge for years or decades later when one party or their heirs try to sell property that had ambiguous title.

I very much agree with the advice that you should first confirm that your local zoning allows the split and that you can get building and driveway permits for both. I would also say a certified survey map is well worth the expense in cases like this and might even be required. I would also use an attorney with a real estate practice for drafting and recording the right transfer documents. Some people try recording quitclaim deeds on their own, which can make a later sale or probate more complicated than it needs to be.

Where I work, the banks would almost certainly require you to satisfy the existing mortgage and finance each property separately with separate title insurance.