I'm looking in to purchasing a home for a flip and after inquiring with the listing agent, she informed me that the property was possibly built over the neighboring property line. The house was built in 1992, so why is this just now coming up? Has anyone ever had to deal with something like this?
You'll likely need a survey done to verify. If it is encroaching on the neighboring lot your options are to either pass on the deal or work out an easement agreement with the neighbor or possibly purchase the strip that is being encroached upon. With it being a newer property it's possible the builder screwed it up and nobody noticed.
You'll likely need a survey done to verify. If it is encroaching on the neighboring lot your options are to either pass on the deal or work out an easement agreement with the neighbor or possibly purchase the strip that is being encroached upon. With it being a newer property it's possible the builder screwed it up and nobody noticed. Just read an article a couple of weeks ago where a builder put up a half million dollar house on the entirely wrong lot! Talk about title issues!
This matter was discussed within a month, might search "property line" and "adverse possession" "prescriptive easements" are threads that touch on the matter.
What you need is a proper survey from the seller, the seller must provide good title, the listing agent knows this. If the seller and listing agent are aware of the encumbrance/encroachment they may looking for a buyer to pay for a survey, put it on them to prove they have clean title in order to sell.
It's not an issue that can't be overcome, with enough money. You could buy subject to the issue, not advised without much more detail and advise from your attorney.
A conventional lender won't buy the deal, that limits the seller's options to sell.
You might get a title company who gave a past title policy to cover the matter, that could change things as to lending aspects.
I've had these issues, usually not worth the brain damage unless there is a real upside potential in getting the matter cured. Good luck. :)
As @Bill Gulley has posted, this was recently discussed, and you can find the link under the "Related Discussions" near the bottom of the page.
Thanks for all of the replies and referring me to the previous thread. Looks like I have a lot of work to do.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.