Investment Ideas / Real Estate Ideas?

Sharon asks…

real estate contracts (breach)?

I bought a home from a builder where the builder and developer promised dog parks. However they were not honest with the people in the homes near the park sites. They didn’t tell these homeowners that there would be dog parks near their homes. So those homeowners banded together and raised hell and the developer backed down.
I am disabled and have a service dog. My disability causes me to not be able to drive at times which I why I specificly asked if there would be dog parks in the community and they told me yes. Now they’re not building them. My service dog is a 75lb labrador who needs exercise and I can’t always drive her to a park. While they should’ve been honest with those few homeowners near the park site, doesn’t this constitute breach of contract with me and the others they promised the dog parks to. While we don’t have the promise in writing, it’s in advertisements and they clearly offered it or those homeowners would’ve had fought them and made them back ddown.

The Expert answers:

Unfortunately for you , no.

Unless the contract of sale expressly represented there would be a dogpark AND it states that the representation shall survive closing.

Under the “merger doctrine”, all prior representations made in a real estate deal (even in the contract) are deemed to be merged into the deed. In other words, unless a provision is stated to survive the closing, the law assumes that if you took the deed at the closing, the seller has satisifed all its conditions and promises or you have waived them.

As for advertising, I would take a look at them and see what they say very carefully. If they represent there will be dog parks, I would call my state attorney general and ask them if this is some type of consumer fraud or false advertising. If there is enough interest, they may start an investigation that may get you some compensation for your troubles. If they merely state it is their intention to create a dog park, then you are probably out of luck because they didn’t anticipate so much opposition from the neighbors, and it was probably a planning board decision on their site plan after public outcry to request they not be dog parks, and the developer probably had little or no control over that.

Maria asks…

Investment Ideas / Real Estate Ideas?

I am thinking about investing into real estate later in life so I have additional income. I have always been into music and from my experience, the demand for warehouses (band rehearsal space) is very high in my area. I was wondering if it would be a good idea to purchase a warehouse, say 50K with a 30 year term, and renting it out to bands. Most warehouses go for about 300 a month per band here, so assuming I have 2-3 bands renting it out, I’d make at least a small profit every month depending on my P&I amount. Of course I wouldn’t purchase a warehouse unless A. I could afford the rent without renting it out to bands, and B. I either break even or make a small profit from the tenants. Another idea is purchasing a really cheap condominium / house and renting it out as well. I’m still very young, so I don’t have much knowledge when it comes to investing or purchasing property, so any information / ideas would be greatly appreciated.
Thanks!

The Expert answers:

There are a lot of commercial buildings (warehouses) in foreclosure lately and you may be able to get a good deal on such a building. It could be a lucrative business to rent out the music space, if you got the building for a good deal.

Good luck!

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