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  1. #1
    knaidel is offline Platinum level (1000+ posts)
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    Default 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
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  2. #2
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    Default

    You were on notice before closing and closed, your choice was to not close, not to proceed with buying it and years later collect from someone else on a known issue. It was a shed, you could see it, you had a survey, it was on the survey, you are on the hook if you really want to move it. I'm a lawyer but his isn't legal advice, but the basic black letter law. If there was something hidden that you couldn't discover on your own, then call a lawyer. But you knew before closing, so it is your problem. Sorry. At least it is a small $ in the context of real estate issues.

    ETA Depending on your jurisdiction small claims court might not even take this sort of case, there are limits on real estate type transactions and depends on your area. Also, check your policy and all docs, good chance there is a provisions for arbitration only / not court for pursing a claim against the title insurance company, etc. Just a couple more issues to consider on what sounds like a case you won't win in any case. I'd spend my energy and resources getting bids to move the shed as cheaply as possible.
    Last edited by HannaAddict; 08-07-2012 at 12:46 PM.

  3. #3
    KrisM is offline Clean Sweep forum moderator
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    Default

    Since you knew before closing and decided to go through with it anyway, I am not sure anyone else should be paying for it. Sure, more notice would have been good, but you didn't have to sign the papers once you did know. I'd probably not waste my time and just pay to have it moved.
    Kris

  4. #4
    knaidel is offline Platinum level (1000+ posts)
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    Thanks for taking the time to respond.
    Hmm, I guess I was thinking that I might have some recourse as I wasn't "on notice"-- meaning no one told us. I was under the impression that the settlement company's job is to tell you about potential issues prior to closing.
    Right, $1k in a real estate transaction is not a huge deal.

    Thanks anyway for responding.
    tax deduction #1: 12/04
    tax deduction #2: 11/07
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  5. #5
    knaidel is offline Platinum level (1000+ posts)
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    Quote Originally Posted by HannaAddict View Post
    I'd spend my energy and resources getting bids to move the shed as cheaply as possible.
    I think the quote from the landscaping company might be kind of high, now that I'm thinking about it. how would you go about finding someone to do this? My first thought is a company that does custom sheds...I don't know who did this one. any thoughts.

    But do you hear what I'm saying...I feel like I wasn't really "given notice" about this? I understand I don't have any legal recourse because I'm pissed that no one let me know.

    okay, so will find someone else to move the shed and get on with my life.
    tax deduction #1: 12/04
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    tax deduction #3: 11/12

  6. #6
    arivecchi is offline Blue Diamond level (20,000+ posts)
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    I'm confused. By settlement company do you mean the title company? They normally provide a copy of the title policy to you and/or your attorney to review. Did your attorney not notice this exception in the policy?
    DS1 2006
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  7. #7
    arivecchi is offline Blue Diamond level (20,000+ posts)
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    Quote Originally Posted by knaidel View Post
    I think the quote from the landscaping company might be kind of high, now that I'm thinking about it. how would you go about finding someone to do this? My first thought is a company that does custom sheds...I don't know who did this one. any thoughts.
    I would call several handymen or contractors and maybe as well as landscaping companies to get quotes. Ask how they would move it to ensure that they can get it done properly.
    DS1 2006
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  8. #8
    knaidel is offline Platinum level (1000+ posts)
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    Yes, around here, settlement/title company is the same thing (or at least in common usage). We did not have a separate attorney from the title company-- the attorney (that we paid for!) from the title company was supposed to look it over and inform us of any problems.

    I guess that's part of the reason why I'm p.o.ed....I mean, I PAID for services. I PAID them to let me know of any problems.

    Regarding it being moved, I just want to make sure it's done well....you know? I don't want to have some guy from the parking lot of home depot to move it, and then have the whole thing fall apart. That would REALLY tick me off.
    tax deduction #1: 12/04
    tax deduction #2: 11/07
    tax deduction #3: 11/12

  9. #9
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    There are standard exceptions, including survey issues, in most title policies.

    http://www.nuwireinvestor.com/articl...nce-51390.aspx

    I'm sorry you're in this spot but really you probably should have just refused to close at the table. We did this twice, and both times the lawyers very quickly agreed to put aside a generous amount in escrow in order to keep the closing on track. Once the required damage was fixed (both times for us it was damage caused on move out or being unable to do a full walk through because the owners still had stuff that they had not removed) or stuff removed to our satisfaction, the $$ were released to the seller.

    At this point, I don't think you have any recourse, unless it's going to cost you $$$$ to move the shed. How big is it? Is it on a foundation? How is it anchored/connected to the ground?

  10. #10
    knaidel is offline Platinum level (1000+ posts)
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    Quote Originally Posted by sophiesmom03 View Post
    but really you probably should have just refused to close at the table. We did this twice, and both times the lawyers very quickly agreed to put aside a generous amount in escrow in order to keep the closing on track.


    At this point, I don't think you have any recourse, unless it's going to cost you $$$$ to move the shed. How big is it? Is it on a foundation? How is it anchored/connected to the ground?
    Right, that's what I said in my original post: Looking back, of course we would have refused to sign. But I guess at the time, for whatever reason, we didn't and continuted.

    I got one quote to move the shed from a reputable landscape company. It would cost around $1100. That includes labor, equipment rental, and filling the grass on the neighbors yard. I will definetly look around for something cheaper...wish I could contact the previous owners and ask them who built the shed, and have that company come and move it.
    tax deduction #1: 12/04
    tax deduction #2: 11/07
    tax deduction #3: 11/12

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