Ask a real estate pro: Can we build another house on my side yard? – South Florida Sun Sentinel

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A: If you live in a community association, you probably cannot do this because of the various restrictions over the entire community. Assuming you do not, you will need to jump through several hoops. You have thought of the first one, which is getting your mortgage lender’s approval. You will need to contact your mortgage lender and explain the situation. Even though that side of your property is just vacant land, it still has value. Your lender may want you to pay down your loan enough so your remaining property’s value is greater than the remaining loan amount. If you skip this step and don’t get your lender’s approval, you will have breached your mortgage agreement, and the lender could take enforcement action, even including foreclosure. Another reason you need to clear your existing mortgage from the property you are giving your son is because the lender giving him a construction loan will want their loan to be in the first lien position.

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