Well, this year we were presented with a title problem that arose because people have caught on to the” money on the roof” scenario. It seems individuals are buying buildings with antennas on them so they may start to collect the rent and have another source of income from the building. Makes sense, right? EXCEPT, as with all concepts that make people easy money, real estate owners are now scheming to exclude the rooftop leases when they go to sell a building.
What does this mean, you ask? It means this, a buyer wants to invest in a building, looking to make money off the roof, and sellers are now trying to sever the lease from the sale! Sellers, through recorded instruments, are assigning, or reserving, all future income rights and other lease rights to themselves, or their corporate entity. If the buyer does not closely review the title commitment, and it’s exceptions to good title, AND does not timely object when they see such assignments, or other limiting documents, they will take title to the building without gaining access to the antenna income. In other words, congratulations, you bought a building and lost the income.