May 17, 2008
Ground rent's confusing consequences
Even people who are involved in real estate can become confused by the ground rent system. On the morning of Sept. 15, a Baltimore sheriff's deputy knocked on the door of a rowhouse in the 1100 block of N. Monroe St. as a worker did renovations inside. The deputy held a writ that said the house had a new owner.
Petar Pecovic of Touch of Class Properties, a rehab business, stepped in to drill through the door so he could change its lock. Pecovic offered to let the worker remove tools and construction materials.
Minutes later, Chris Campbell, a Prince George's County investor, pulled up in a truck. Campbell noted that he had installed new windows and plumbing and planned to rent the place. He tried to explain to the sheriff's deputy that he owned the house.
But the sheriff's writ stated that a trust overseen by Fred Nochumowitz was the new owner. Pecovic was representing the trust.
Both Campbell and the writ were right.
Property records show that Campbell bought the Sandtown house for $2,000 in July. He had relied on the title company, in this case National Title Services Ltd. of Beltsville, to make sure the property was free of any liens or judgments. But according to court records, the Nochumowitz trust had won the property in late February, almost two years after filing an ejectment lawsuit. In October, Campbell paid an undisclosed sum to the Nochumowitz trust to get the property back, court records show.
Herbert Callahan, president of National Title, said that the ground rent suit might have been overlooked. Officials at several area title companies say ground rents are a minefield and can be easily overlooked, at homeowners' peril. Even when title searches reveal the existence of a ground rent on a property, it is often impossible to know where the ground rent owner is.
"It's a nightmare," Callahan said. "The whole system stinks."
Copyright © 2008, The Baltimore Sun
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