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Can Buildings Be Removed Without an Extraction Agreement?

"Extraction Agreements" usually refer to mineral rights and mining, though the term may be used in agreements to extract anything, including a structure from a property. Sometimes a building may be removed from property without an agreement to do it. But property owners need to be very clear on their rights. Property owners must also be aware of other obligations such as permits and language in previous agreements such as mortgages.
  1. Ownership

    • Before you can answer "yes" to the question "can you remove a building," ask yourself if there are any liens or encumbrances on the property. Real estate ownership isn't as simple as other assets. While you may "own" your property in the casual use of the word, any banks who have lent you money, cities, or even a Home Owners Associations may have an ownership interest (partial or potential ownership in your property) or an encumbrance (a limitation of the use of your property). If you believe you own your property clear of any liens, look to any encumbrances, including local codes and laws that might limit your use such as special regulations in a city's historic district.

    Rights

    • Real estate laws are complex. Because the improper removal of a building could result in major civil penalties, a land use attorney should be consulted. If you choose not to consult an attorney, go to each of the governing bodies who might have some governance of the removal of your structure, including your local building permits division, hazardous waste agencies like the EPA and your state department of transportation if you intend on physically moving the structure, intact, to another location. If you have any concerns, tell them what you intend to do and ask for their express permission in writing.

    Permits

    • Even though removing a structure is a lot different from building one, you may need a building permit or something similar. You'll be dealing with utilities and may need an inspection to ensure electricity, gas and water are dismantled and contained safely. You may need additional permits if your property contains hazardous waste. It may be easy to overlook the possibility of hazardous waste in a residence, but older homes may have asbestos. There can also be hazardous materials such as underground oil tanks.

    Contracts

    • If any other parties have an ownership interest in your property, do not damage or remove a structure without an agreement. You'll expose yourself to liability. Even if your intentions are to increase the property's value, get an agreement first. And beware of previous agreements that relate to the property. Most mortgages, technically called a "note and trust deed" in most states, have language expressly forbidding you from removing a structure. It probably forbids you from even damaging the structure, including pre-remodel demolition. Be aware of any agreements you entered into relating to your property. If you have such an agreement that precludes removal, ask permission of the other party. If you are not able to convince a mortgagor, for example, to modify your agreement, you may have to refinance the property to avoid breaching your agreement and exposing yourself to civil liability.