Real Estate Concerns

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Describe the estate system, and explain how it is relevant to determining ownership of real property.


In the course of your employment with T&G Consulting, you have been introduced to the owners of a local electrical contracting business, Power Electricians, Inc. During your first meeting, you learn that the business is thriving and, as a result, the owners are in need of a larger commercial space for their office, equipment, and trucks. Â They have been leasing their existing space for the past five years. They are thinking about approaching their landlord and discussing with the landlord the possibility of enlarging the space and renewing the lease. They are also entertaining the possibility of looking for new commercial space to lease. A third option would involve the purchase of a building and land for their growing business. You agree to consider this further, and another meeting with the group is scheduled. Prior to the second meeting, you realize that a significant amount of additional information is needed in order to provide Power Electricians with a sound recommendation as to whether they should buy or continue leasing. Prepare a series of questions that you will present to the owners at the second meeting that are designed to elicit the necessary information. Explain the importance of each question, and why the information sought by each question is necessary for the determination as to whether to buy or lease.

Assume that the business owners decide to buy, and a large tract of land with a 3000-square foot building has been identified as a possible site. A survey of the land is conducted, and it is discovered that a trailer and small vegetable garden occupy a portion of the land. The trailer is inhabited by a couple with two young children, and it is determined that the family has lived at this location for a number of years. Your client (the owners of Power Electricians) apprises you of these facts, expresses concern about what rights the family may have, and asks how this might impact your client’s plan to use the area that is currently occupied by the trailer and garden for parking. Prepare a memo to your client addressing the issue of adverse possession. In your memo, be sure to explain some of the key considerations in determining whether the family might be successful in claiming title, based on adverse possession, to the portion of the property they’ve occupied.

Assume that a contract for the purchase of the real property is ultimately executed, and the family has agreed to vacate the land. Your client has inquired about the type of deed that should be prepared, and you’ve been asked to respond to their inquiry in an email. What would you advise the client, and why?

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