Purchasing Property with Garage Encroaching on Neighbor's Land

Purchasing Property with Garage Encroaching on Neighbor's Land

Desert Hot Springs, CA · Member since 2015 · 2 posts · 0 votes

I have a property that I'm looking to buy. It has an encroachment in to the neighbor's raw land. The last owner got a land surveyor to mark the property lines and the contractor and the bank went ahead and  built a new house in 06. Not knowing the property lines where off. The neighbor found out the house was encroaching by google map's and put a law suit on her.

The owner let the house go after 7 year's don't know why. It's own by the bank now.

The corner of the garage  is 3 feet , the driveway is 5 feet and the side gate is 5 feet encroaching in the neighbor's land.

I'm new to investing but this is a great deal and no one is jumping on it because of the encroachment.

My question is if I was to demo all of the encroachment, can the neighbor still go after me for the land surveyor mistake?

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Frederick, MD · Member since 2015 · 654 posts · 256 votes
10y
Originally posted by @Francisco Serrano:

I have a property that I'm looking to buy. It has an encroachment in to the neighbor's raw land. The last owner got a land surveyor to mark the property lines and the contractor and the bank went ahead and  built a new house in 06. Not knowing the property lines where off. The neighbor found out the house was encroaching by google map's and put a law suit on her.

The owner let the house go after 7 year's don't know why. It's own by the bank now.

The corner of the garage  is 3 feet , the driveway is 5 feet and the side gate is 5 feet encroaching in the neighbor's land.

I'm new to investing but this is a great deal and no one is jumping on it because of the encroachment.

My question is if I was to demo all of the encroachment, can the neighbor still go after me for the land surveyor mistake?

Have the property lines been verified... Google Maps isn't going to cut it? The land surveyor who set the property corners in '06 - have they been consulted? Did they stake it out wrong for construction and perform the as-built incorrectly too?  Statues have probably long since expired to make claim on the surveyor's errors and omissions insurance, but worth looking into.  Perhaps they can help with a solution?

What is the neighbor seeking in the lawsuit?  If the bank owns it now, suing the prior owner is probably a waste of their time and money... sounds like they may need to refile and sue bank for whatever it is they want.

Might just want to try talking to the neighbor first - be transparent about your intent and find out what it'll take to make them happy.  If they'd prefer a vacant house over neighbors, well that's insightful... could make for unpleasant living conditions for you (if you're planning on living there) or future occupants.  And if you're planning on flipping, they could make it tough to sell if they make a lot of "noise".  Might be better off just walking away... cheap doesn't always mean good.

At the end of the day, the bank can't sell what they don't own (and may very well have exposed themselves for misrepresentation if they've offered the property with a garage and driveway).   Encourage the bank to settle with the neighbor if necessary - if there's really a valid claim, then they're going to have to deal with it sooner or later - whether directly or indirectly.

Of course, perhaps you could try and leverage the situation... if you can find out what the neighbor will take dollar wise, have the bank deduct that from the selling price (and then some to cover your costs to make it happen).  Naturally, get your attorney involved as you'll want an agreement in place with the neighbor ahead of time.

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  • Lender · Las Vegas, NV · Member since 2015 · 2k+ posts · 1k+ votes
    10y

    Why not see if the owner of the land that has been encroached is willing to sell you that portion of their land that has been encroached on?  That has to be cheaper than demolishing a building (or portion thereof) and relocating a gate and driveway.

  • Frederick, MD · Member since 2015 · 654 posts · 256 votes
    10y
    Originally posted by @Francisco Serrano:

    I have a property that I'm looking to buy. It has an encroachment in to the neighbor's raw land. The last owner got a land surveyor to mark the property lines and the contractor and the bank went ahead and  built a new house in 06. Not knowing the property lines where off. The neighbor found out the house was encroaching by google map's and put a law suit on her.

    The owner let the house go after 7 year's don't know why. It's own by the bank now.

    The corner of the garage  is 3 feet , the driveway is 5 feet and the side gate is 5 feet encroaching in the neighbor's land.

    I'm new to investing but this is a great deal and no one is jumping on it because of the encroachment.

    My question is if I was to demo all of the encroachment, can the neighbor still go after me for the land surveyor mistake?

    Have the property lines been verified... Google Maps isn't going to cut it? The land surveyor who set the property corners in '06 - have they been consulted? Did they stake it out wrong for construction and perform the as-built incorrectly too?  Statues have probably long since expired to make claim on the surveyor's errors and omissions insurance, but worth looking into.  Perhaps they can help with a solution?

    What is the neighbor seeking in the lawsuit?  If the bank owns it now, suing the prior owner is probably a waste of their time and money... sounds like they may need to refile and sue bank for whatever it is they want.

    Might just want to try talking to the neighbor first - be transparent about your intent and find out what it'll take to make them happy.  If they'd prefer a vacant house over neighbors, well that's insightful... could make for unpleasant living conditions for you (if you're planning on living there) or future occupants.  And if you're planning on flipping, they could make it tough to sell if they make a lot of "noise".  Might be better off just walking away... cheap doesn't always mean good.

    At the end of the day, the bank can't sell what they don't own (and may very well have exposed themselves for misrepresentation if they've offered the property with a garage and driveway).   Encourage the bank to settle with the neighbor if necessary - if there's really a valid claim, then they're going to have to deal with it sooner or later - whether directly or indirectly.

    Of course, perhaps you could try and leverage the situation... if you can find out what the neighbor will take dollar wise, have the bank deduct that from the selling price (and then some to cover your costs to make it happen).  Naturally, get your attorney involved as you'll want an agreement in place with the neighbor ahead of time.

  • Buy & Hold Owner · Redlands, CA · Member since 2015 · 5k+ posts · 2k+ votes
    10y

    [ caveat: personal opinion of no legal standing, you are responsible for your own decisions]

    Lookup "Constructive Easement" (if I recall properly).  After X years of passive acceptance w/o protest, it becomes likened to a Common Law Marriage - - it's yours by default.

    SEEK LEGAL ADVICE

  • Specialist · Cherokee Village, AR · Member since 2015 · 24 posts · 12 votes
    10y

    I agree with both Charlie and Micheal. A best course of action may be structuring the deal with the contingencies of a new survey and some kind of settlement with the neighbor. 

    Some of the best deals in real estate are the ones which require a little extra work...or a really great lawyer!

    Good luck!

  • Desert Hot Springs, CA · Member since 2015 · 2 posts · 0 votes
    10y
    The land owner will not settle for no less than 150,000 .The house is worth about 300,000 and the bank is asking 150. I'm in the construction business and I estimate it will cost me about 8000 doing it my self.. They had a new land survey and it has the stakes only on the side of the encroachment.  I talk to a realty lawyer and he said the one thing I can do is to have him sing a document that state's he will not go after me if I remove the encroachment.  I also talked to a friend that work for a title&escrow company and she looked up the property and she said there was some lien on the property but they all have cleared and there's nothing else on the property. Im thinking the land owner is full of bs and he is lying. Where else can I look up if there any law suits?  Thanks for all your comments
  • Clearwater, FL · Member since 2017 · 10 posts · 2 votes
    7y

    Care to update as to the outcome, Francisco?

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