When Plan A Doesn’t Work

Multiple readers responded to week’s column about ADUs, including a few who questioned whether the government-subsidized permit and design assistance is going to be effective in streamlining a process that has become notoriously difficult and expensive. Logically if the level of expertise isn’t up to snuff, as Plan B you can always opt to switch to a local expert who may be more adept at navigating the tricky waters of the application and approval process, and they might actually save you money in the end.

One such professional whose company specializes in permitting and installing modular ADUs points out that the biggest barrier many of his clients face isn’t so much the permits themselves, but rather the soft costs arising from things like water supply and county standards for sewage disposal, where the initial budget gets exceeded by tens or even hundreds of thousands of dollars due to their increasing tendency to require engineered systems.

An informed land-use expert may be able to help you circumvent such barriers through creative alternatives such as limiting unit size or connecting structures. What often separates the true professional lies in their depth of knowledge and willingness to help you explore a Plan C and beyond when your project runs into complications. 

It occurs to me that much of our work in Real Estate exists in the zone between Plan B and Plan C where things didn’t turn out as originally hoped or expected. And the range of solutions we are able to offer at key moments can make the difference between things falling apart and staying together, with the knowledge of these tools usually coming from prior experience. 

We have a current transaction where a neighboring owner questioned the boundary line between our client’s property and his, based on his reading of the county’s GIS mapping overlay—which is commonly off by margins of 20 feet or more. He was quoted $8,900 for a survey and wasn’t willing to cover the cost, and the Buyer was understandably reluctant to proceed until the question is resolved. After pulling county records and making a few calls, we found another surveyor who can locate the line for less than half the price, and are negotiating to get the neighbor to split it, with the Buyer to reimburse a third of the cost at close of escrow if they decide to complete the purchase.

In another transaction, the UCC-1 search for a business sale turned up two liens which preclude the lender from funding the loan. While the escrow holder chases down the lien holders to see if they can get a release, we are also checking with the lender to see if they would allow our client to bond around the liens with a company who could provide the surety bond within 7 days at a cost of $250.

It remains to be seen how each of these proposed solutions turn out, but that’s what keeps the job exciting. And while we seldom have control of the plot twists, at our best we are able to help rewrite the script as the plot unfolds, to help direct things towards a happy resolution.