In my previous post, I discussed the basics of filing a private mechanic’s lien in Kentucky. Today, the subject will turn to the release of a private mechanic’s lien by execution of a bond. Execution of a bond for release of lien (the “Bond”) provides the owner of property against which a mechanic’s lien has been asserted, or the contractor who contracted with the owner for the provision of labor and/or materials for improvement of the property, an avenue of relief whereby the owner or contractor can have a mechanic’s lien filed against the property released. Utilization of a Bond is particularly helpful when a dispute arises regarding the validity of an asserted mechanic’s lien.

Development in flood prone areas is regulated by a combination of federal, state and local regulations to reduce the possibility of loss of life and property, and to reduce the cost associated with development and rebuilding in these areas. The Federal Emergency Management Agency (“FEMA”) publishes flood maps that identify the regulatory floodplain. Congress has enacted various changes to existing legislation to discourage development in special hazard areas and to facilitate the purchase of flood insurance in by property owners in flood prone areas. Under current laws, communities that want to make national flood insurance available to its residents must participate in the National Flood Insurance Program. This required communities to adopt certain minimum standards that regulate development in areas that are prone to flooding, including standards that prohibit new development in special hazard areas.

Fewer words in the context of land use planning come with as negative a connotation as “sprawl.” There’s a good reason for this, as the term denotes a move outwards from the heart of a city, pushing communities further apart into low density suburbs while the core of the area falls into decay. Sprawl has been cited as the cause for everything from environmental damage to community segregation, with inherently negative consequences for cities that fail to plan for sustainable growth. To combat sprawl, however, communities have turned to creative and innovative revitalization efforts such as infill and adaptive reuse as a way to slow the outward push and revitalize existing residential, commercial and even industrial spaces.

Prior posts have discussed initial considerations in the purchase of commercial real estate and conducting due diligence prior to closing the deal. Today’s focus will now turn to contingencies often found in commercial real estate contracts.

Winding up an estate is a difficult task, one that can take a toll on a group of the decedent’s family and loved ones. This process, however, is exponentially more challenging when a person dies intestate. Real property is particularly difficult to distribute without a definitive statement of intent on the part of the deceased. The various methods of descent in intestacy create tangled estates as families grow in complexity, and so many conflicts might be resolved otherwise through the careful act of creating an estate plan.

A wise move when performing regular commercial transactions with members of the public is to organize or incorporate that business to limit one’s personal liability in the event problems occur. This is especially true in the area of rental property, where transactions and adverse actions can be emotionally charged. What landlords and property managers may not know is that they cannot, by law, represent their own business interests in court in Kentucky if the business is organized or incorporated as a separate entity.

A mechanic’s lien is an invaluable tool for contractors and others who supply labor or materials for improvements to real property. In its most basic sense, a mechanic’s lien provides security for these groups so that they are not left at the mercy of a defaulting contractor or property owner. The discussion set forth herein only addresses the requirements for filing and perfecting a mechanic’s lien against a privately owned parcel of real property. The requirements for filing and perfecting a public improvement lien differ from those discussed below.

When we think of subdivisions, we generally think of large housing estates with a house on each lot, but technically the subdivision of land means the creation of saleable lots by splitting a tract into smaller parcels. In communities that have adopted land use regulations, the subdivision of property is typically handled by submitting a subdivision plat to the planning commission in the jurisdiction where the property is located. The subdivision of land is considered a ministerial matter. This means that if the proposal meets the minimum requirements of the zone in which it is located, the planning commission must approve it. Unlike rezoning of property, which requires notice to surrounding property owners and a full due process hearing, a subdivision plat does not trigger notice and hearing procedures. Typically all that is required is submission of a subdivision plat that meets the minimum requirements set out in the zoning ordinance and land subdivision regulations as well as the payment of a processing fee. Under Kentucky law, the planning jurisdiction has the power to assign the review and approval of subdivision plats to a staff person. After a plat is approved, it is recorded in the county clerks’ office. A recorded subdivision plat creates the new lots. No new lot can be sold until after the subdivision plat is recorded.

The comprehensive plan is the most important tool in land use planning. In its most basic function, it provides a roadmap for the development of a community’s most limited resource, the land itself. More than just a rigid set of directions, however, the comprehensive plan lays out a community’s vision for the future, providing guidance as to how the community will grow and thrive while striking an appropriate balance between competing uses.

The most enduring maxim of any transaction is “caveat emptor,” therefore a key element of any commercial real estate transaction is due diligence on the part of the purchaser. A thorough investigation into the fundamentals of the property, the seller, the financing and the deal itself is the most crucial form of protection a purchaser has. Such an investigation exists to prevent surprises that might arise post-transaction. This post will briefly cover some essential elements of due diligence in the commercial real estate transaction.