settlement/title issues on house- any BTDT?
Two years ago, (8/2010) we purchased a home. At closing, it came out that the previous owners installed a shed on the propery incorrectly: it encroaches on the neighbors backyard. We were not informed before closing by the settlement agency, in fact, it wasn't even the rep from the settlement agency who noticed it-- it was someone on "our" side-- I think it was our real estate agent who noticed it when looking at the survey map of the property. At the time, we didn't really think there was anything we could do about it. (Now, of course, I know better and if I were in that situation right now, I would ask the sellers for a credit to pay for the shed to be moved.
So, now, the shed really needs to be moved. The neighbor doesn't really care if the shed is there or not, but she iis getting ready to put her house on the market....so it will be an issue then.
From speaking to people, it's definetly my understanding that it's the job of settlement company to inform us of problems like this BEFORE settlement. My husband and I feel that there was a degree of negligence on the part of the settlement company. I called them, didn't get anywhere.... the lawyer who did our "binder" said "Sorry, not my problem. I told the company, and you shouldn't have signed the documents then." The settlement company is saying it's the lawyer's problem.... Oh, and we got estimates to move the shed.....around $1000 to move it back on to our property (that includes filling in the soil/planting grass on the neighbors property where the shed has been sitting all this time.) It's a 6X8 shed, and we need it moved with some serious equipment...not just some day laborers who hang out in the parking lot of home depot, ykwim?
So far, we thought of two options:
1) go through the title insurance company. We can file a claim through them, but the woman I spoke to in the claims department said that it really depends on our particular policy, and if it will be covered.
2) bring the settlement company to small claims court. We have 3 years from the date to bring them for a torts complaint (which I think this is)
My husband is a lawyer, but he knows nothing about real estate transactions. I don't really want to get started with a lawyer for a $1000 issue.
Curious if anyone has any experience in real estate transactions that could share any wisdom.
Last edited by knaidel; 08-07-2012 at 01:00 PM.
tax deduction #1: 12/04
tax deduction #2: 11/07
tax deduction #3: 11/12