Proposed Changes to Ground Rent
Some of the pols are calling for laws that disallow the creation of new ground rents - I don’t really see the point of this. Not too many sellers create ground rents when they sell, and if you’re worried about it you can always specify in the contract that no ground rent will be created at sale.
Ground rent owners need to have a way to legally collect the rent due to them, but being able to seize a home over a $240 debt doesn’t make sense. I don’t see any problem with being able to force a sale, but the ground rent owner shouldn’t get any more than the debt owed and maybe legal fees. If they were limited to collecting their unpaid debt + expenses, I think this problem would go away pretty quickly. Who’s going to sue for $240?
“if you’re worried about it you can always specify in the contract that no ground rent will be created at sale.” Most buyers don’t have the knowledge to request this, nor in my experience would their buyer’s agents.
That’s why you read my blog