As many buyers, sellers and developers know, without some creative and efficient solutions, real estate disputes can span months and even years. The legal ins and outs are often complex, and while avoiding litigation is preferable, sometimes it is necessary to go to court to achieve the best outcome.
In addition to the sale or purchase agreement, major real estate deals could involve matters such as zoning, housing codes, environmental compliance, commercial leases and construction law, just to name a few. Another obstacle for many buyers and developers is financing, and that appears to be the case in the purchase of Detroit’s long-dilapidated Packard Plant.
The initial round of bidding didn’t bring any takers. Another round attracted a bidder from Texas, but her bid was cancelled by the county after no payments were made.
Now an Illinois developer, who plans to make the crumbling property into a residential and commercial complex, is gradually raising money to complete the deal. He bid about $2 million at auction, and so far he has paid $200,000.
The county treasurer confirmed that his office is working to accommodate the bidder and complete the sale. It was also noted that the county is prepared for an alternative in the event that the current bid winner isn’t able to come through with financing.
The next-highest bidder is a developer from Spain who has had success in redeveloping blighted buildings in Europe, Asia and South America. His bid was reportedly just $1,000 under the winning bid.
Such proposed developments require complex planning and legal foresight. With that in mind, Detroit-area residents may want to keep an eye on the fate of a property that for more than a century has been a changing part of the city’s history.
Source: mlive.com, “Illinois developer pays another fraction of bid owed on Detroit’s Packard Plant,” David Muller, Nov. 6, 2013
