Leave Land, Not A Liability
I agree with everything Robson has laid out, and I’ll add a step that happens long before any contract is signed:What you tell your heirs before they inherit the property at all.
Many of the people caught off guard by a UEP assessment are heirs, not original owners. They inherited a lot in Cape Coral they’ve never seen, often from a parent or grandparent who bought it decades ago as an investment or a future retirement plan that never happened. The property passes down, but the knowledge doesn’t always come with it. Nobody ever sat down and explained what a UEP assessment is, whether one applies to this particular lot, or how much it could cost.
This is a gap that estate planning can close. If you own vacant land in Cape Coral, or anywhere with pending utility or infrastructure assessments, your estate plan should account for it. A letter of instruction, a conversation with your personal representative, or even a line in your trust documents can flag that the property may carry an assessment and tell your heirs how to check on the amount owed before they ever list it for sale. It’s even better if you can find out how much you owe in assessments yourself and keep the documentation with your other estate records.
This kind of planning costs very little now and can save your heirs a real headache later. It also protects them from making the kind of accidental decision Robson describes, leaving them between a rock and a hard place when they get to the closing table and find out that what seemed like a fair deal at first glance wasn’t at all what they expected.
Good estate planning isn’t only about who gets what. It’s about making sure your loved ones actually understand what they’re getting.
By Kara B. Rogers, Esq.
One Checked Box Could Cost Cape Coral Land Sellers Thousands
Picture this. You accept an offer on your vacant Cape Coral lot, sign the contract, and begin planning how you’ll use the proceeds from the sale. Then, at closing, thousands of dollars are deducted to pay a Utility Expansion Program (UEP) assessment you never expected to owe. After reviewing the contract, you discover that a single checked box made you responsible for paying it.
Cape Coral is unique because many properties are subject to UEP assessments. Depending on the property, those assessments can total $30,000 or more. Yet many sellers focus almost entirely on the purchase price and overlook the section of the contract that determines who will pay outstanding government assessments. It happens more often than many people realize. There are many sophisticated corporate buyers who are looking to purchase distressed or unwanted properties at a bargain, and heirs who inherit property without ever having lived in Cape Coral are particularly vulnerable to this type of oversight as they may not be aware of these assessments.
In many real estate contracts, responsibility for these assessments is negotiable. The buyer may agree to assume them, the seller may agree to pay them, or the parties may negotiate another arrangement. The important point is that the decision should be intentional, not accidental. Once a contract is signed, changing that allocation may not be possible.
This is a reminder that every provision in a real estate contract matters. A checked box can affect your bottom line just as much as the purchase price itself. Before signing any contract to sell property in Cape Coral, take the time to read it carefully. Ask questions if something is unclear, and make sure you understand how assessments, closing costs, and other financial obligations have been allocated. A few minutes spent reviewing a contract before signing could save thousands of dollars at closing.
By Robson D.C. Powers, Esq.
Disclaimer: Nothing contained herein should be construed as legal advice. You should always consult an attorney for any legal questions. This article was originally published in the August Edition of the Cape Coral Sun and can be read in its original form at here.