"PRIVATE" waterfront community made DIY parking lot into my land

"PRIVATE" waterfront community made DIY parking lot into my land

CA · Member since 2014 · 152 posts · 65 votes

That's the scenario...  

I'm in process of purchasing a piece of land that borders an exclusive private community of 100+ over-water homes. 

Their deeds entitle them to 10feet of walkway in some areas, and 20feet of road way in others. 

After talking with some residents, I was told that a couple of the residents are/were in contruction (probably licensed GCs) and just took their bobcats and went town and created a pretty large parking lot for themselves. They paved and painted it and looks very official. They even have a towing company, with their signage on site, that hauls away vehicles that are not part of their community (!!). Imagine that.

Half of the community (50+ houses) park in this parking lot and use wagons and stuff to walk their groceries and supplies down the little (allowed) path to their homes.  I think the bobcat crew knew what they were doing was wrong and stopped short of extending the road. 

Any creative options? attorney referrals?

I was thinking of Oprah style "you get a lis pendens, you get a lis pendens, everyone gets a lis pendens!"  to all and offering fractional ownership of the land for a reasonable price.

I can finance for each of them and just get paid up front lump sum, or carry a note in a 2nd or 3rd position. 

They've also made an a makeshift HOA among them which includes upkeep of "their" parking lots, so nobody can say they weren't complicit in the trespassing/illegal build.

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Member since 2022 · 1k+ posts · 1k+ votes
4y

Unreal lol. Put in a parking gate and do daily and monthly rentals for parking. 

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  • Member since 2022 · 1k+ posts · 1k+ votes
    4y

    Unreal lol. Put in a parking gate and do daily and monthly rentals for parking. 

  • JD MartinBusiness Member
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    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 17k+ votes
    4y

    Unless this property was some kind of real steal, and you had some good use for it to make it really profitable, I'd pass on this headache. If they have this exclusive private waterfront group of homes, don't be surprised to find yourself in some kind of lawsuit with some/all of them or their HOA. Even if you win, you'll spend a ridiculous amount of time and energy on this nonsense. Why hasn't the current owner dealt with this issue? I'm guessing that's why S/he is selling to you.

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  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    4y

    If they just did this, get a lawyer involved.  Put up no trespassing signs once it is your property. contact the towing company and tell them that this is private land that does not belong to the people parking there and you want ANYONE parking there towed.  Depending on where it is located (ie is it at the end of the property you are buying), offer to sell it to them at a premium provided you can section off that parcel of land.

  • CA · Member since 2014 · 152 posts · 65 votes
    4y
    Quote from @JD Martin:

    Unless this property was some kind of real steal, and you had some good use for it to make it really profitable, I'd pass on this headache. If they have this exclusive private waterfront group of homes, don't be surprised to find yourself in some kind of lawsuit with some/all of them or their HOA. Even if you win, you'll spend a ridiculous amount of time and energy on this nonsense. Why hasn't the current owner dealt with this issue? I'm guessing that's why S/he is selling to you.

    It was a steal. They didn't get anywhere near max offer, so I saved about $150k there that I can easily justify spending on legal/survey/soil/geo.

    No formal registered HOA. Residents operate as if there is one and all contribute towards... upkeep of that land they all collectively use and enjoy.

    Previous owner no longer exists to my knowledge (dead entity). 

    They probably wouldn't want to sue me.  I'm very nice! (haha) --- though I'd honestly like to find a solution that benefits us all. Any lawsuits would put an immediate wrench in that. 

    Also, as mentioned there definitely appears to be some major issues with the past/current land use. A few of the residents were a little more bold and carved out nice "backyards" for themselves.  Residents know they're not supposed to do that (there are other agencies in play that likely forbid this as well - aside from the land not belonging to them). 

    So, I think it is likely that any individual resident suing me would result in immediate lis pendens for everyone since they've operated as a group in the potential wrongdoings here. That would be very painful for anyone wanting to refi or sell. So I don't think either of us will bother each other much throughout this.

    They also potentially would have liability from owners of any vehicles they've had towed in the past years, including any hardships caused to those vehicles owners, as well as the towing company they probably swore under penalty of perjury or whatever that the parking lot was theirs to have vehicles towed from.  I'm not sure what the statute of limitations would be in that case. In California there is fraud, intentional misrepresentation, delayed discovery rules, etc.  could be very bad. 

  • Member since 2022 · 1k+ posts · 1k+ votes
    4y

    Keep in mind that the liability knife cuts both ways. If someone slips and falls on your/"their"(lol) parking lot, they may just decide to come after you. Which is why there is no shame in taking it over and monetizing it accordingly. 

    Or like already mentioned, try to get a lot line adjustment and sell it the HOA.

  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    4y

    Seems like you can work something out amicably.....no one really wants legal trouble over something relatively minor like this. Of course some rich people want things their way and like to throw their weight around, but strike up a conversation and see where it goes. Might be a little money-maker for you!

  • CA · Member since 2014 · 152 posts · 65 votes
    4y
    Quote from @Jon Martin:

    Keep in mind that the liability knife cuts both ways. If someone slips and falls on your/"their"(lol) parking lot, they may just decide to come after you. Which is why there is no shame in taking it over and monetizing it accordingly. 

    Or like already mentioned, try to get a lot line adjustment and sell it the HOA.


    Yeah, exactly. Since it's zoned for housing I have quite a few options.  It'll be interesting to see how it plays out.  I can't be sure of the property lines or any encroachments until I get a survey. If my it's confirmed, then still have 3 years to.... negotiate with them.  It's a nice community, I'm sure it'll work out great for everyone.

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