You are the property acquisition manager for Caruana Industries. Your job is to find properties so that the corporation can build malls or other structures and develop land.
You have found a parcel of land of approximately 150 acres in the City of Oceanside.
First of all, if you were going to advise the corporation about how they should acquire the land, what would you advise? In other words, would you recommend that they rent the land on a month-to-month basis or perhaps get a lease or would you recommend purchase?
You are concerned about which of the above is the best but assuming that you have come to the conclusion that you would like to purchase the land, how can you be sure that the land is really owned by what appears to be the prior owner, Park Industries? What would you do to verify ownership?
Subsequent to deciding to purchase, assume that you are going to go into escrow. Please explain the escrow process and the significance of it. Please detail all of the stages and the issues.
In looking at the land that you will subdivide, certain pieces of land, once subdivided, if approved by the City of Oceanside, will need access to major streets and highways. What do we call the right of way that a person may have in going over another piece of property? Please explain what that is and the significance of it. Explain how it is accomplished. There is also a concern that the property was once in a condemnation proceeding and that the city was attempting to acquire the property. How can a government entity take or acquire property? Please explain.
Finally, if there are problems with the purchase of the land, the parties may have remedies. When it comes to remedies for real estate deals, please explain what the remedies might be if somebody wants to get out of a deal. Please check your text books for the types of damages and the other remedies. Make sure that you consider rescission as a remedy.
