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Built on Wrong Property 37

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TigerGuy

TigerGuy

Geotechnical
Apr 29, 2011
2,199

This seemed more like a failure than a pub discussion. Developer and builder construct home on the wrong property and sue property owner to give up ownership.

Isn't this why we hire qualified surveyors and designers? To make sure things are done correctly, I would never dream of just thinking, "yep, this looks like the property."
 
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There are surveying and boundary laws that establish the property line to what has been observed for some number of years. The corner pin is considered a permanent mark, but the property line may or may not connect to it. Redrawing boundaries will only extend the animosity between neighbors, when a glass of lemonade and a rational discussion is what really needs to happen.
 
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A buddy of mine had a house built. A survey was required for the loan to buy the land, a lot in a new subdivision. Then another survey was required for the construction loan. Then, when the house was finished, he had to get a third survey for the mortgage.

He had complained about the cost of doing the second survey, but the third one was the most costly. It turned out the first two were done off the subdivision pins. The third was done from the local datum (not sure the term) and worked from there to his property. Which is how he found that his driveway was about 6 feet over the line into his neighbor's yard.

Turned out the developer had the original survey done and submitted, but then some buddy wanted a change, so the developer moved the stakes 10 feet to the side for dozens or more lots. The lots were all the same area and the same shape, just shifted.

This would not be insurmountable in a fully finished development, but his neighbor had not started any construction and was therefore unaffected in any way. That strip became the most valuable land in North America.

Everyone got sued.

Edit to add: Until the matter was settled, he would be sitting on a construction load and construction loan rates.
 
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This is what title insurance is for. All she has to do is file a quite title action. If the developer pushes this, she can sue for encroachment and demand that the property be restored to its original state. The Developer is SOL. If I was her I would tell the developer to pound sand.

The developers only recourse is against a surveyor. I don't know how you even submit a site plan, get elevations for site work, or pour a slab without certified surveys.

Things in Florida got really crazy in Florida during the RTC days, but those are nothing to submerged land issues.
 
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I think the developer didn't hire a surveyor.

PJ’s Construction was reportedly hired by developer Keaau Development Partnership to build about a dozen homes on properties that developers bought in the subdivision, where the lots are identified by telephone poles.

An attorney for PJ’s Construction said the developers didn’t want to hire surveyors.
Click to expand...


Apparently the corners of the lots are identified by telephone/power poles which is why the developer felt so good about skipping a survey.

Not sure this is the same house, but it sure looks like it is built the same:
Since it doesn't mention the tax sale it's either a different lot on the same street or the wrong information from a different lot.

I only get the tippy-top but two judges have recused themselves over initial hearings.

Both Hilo Circuit Court judges have bowed out from hearing a case involving a California woman sued by a developer whose contractor mistakenly built a house on her lot in Hawaiian Paradise Park.
Click to expand...

 
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I seem to recall browsing thru an old book on surveying, and in the good old days the reference point a surveyor would use is a bottle top nailed to an oak tree. Such a refernce point would at least last thru the career of the surveyor, and as with all of us, what happens after retirement is someone elses problem.

"...when logic, and proportion, have fallen, sloppy dead..." Grace Slick
 
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They build the house and then want the land? Good then that should also be done on national forest and other such lands as well.
Did the ones responsible ever think that is why there are outfits that move houses? Funny stuff.
If it was my land I'd say not for sale but will trade it for other land that I find.
 
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The following may be of interest:

In Smith Develop~nt, Inc v Flood 198 Ga. App 817, 403 S.E.2d 249 a builder, without the knowledge or consent of the defendantMs Flood, commenced to build a
$40,000 house on vacant land owned by Ms Flood. When the bouse was about 50% complete, Ms Flood discovered the work and had her solicitor write to the builder request-ing that no further construction take place and warning the builder that if construction continued it would be at the peril of the builder.
...
The Court of Appeals of Georgia (USA) held that the builder was not entitled to recover anything from Ms Flood.

Ex:

Smith Development Inc v Flood 198 GA App 817, 403 SE 2d 249

 
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That is in Australia; this case is in the US state of Hawaii.

Regardless of ownership, et al, this woman now has to pay property taxes on a home that is currently not livable due to the damage from squatters, has a building she did not want, lost any trees she had intended to keep, and now has to navigate the typically very expensive legal system that will, at best, sometime in the far future award her a fraction of the loss.

Update:
An Oahu developer who filed a lawsuit against a California woman who owns a Hawaiian Paradise Park lot on which his contractor mistakenly built a house more than a year ago testified Thursday that he paid contractors, subcontractors and vendors more than $300,000 in cash and that there was no insurance bond on the construction.
Click to expand...

And the ugly
Lot owner takes the stand in case of house built on wrong lot
by Jeremy Lee

Off a remote, gravel road in Hawaiian Paradise Park sits a brand new three-bedroom house on the wrong lot. There is a wrinkle in the case. The lot was purchased for $20,000 in a tax auction.

A prospective buyer can't get title insurance on it.

The brand new house would have to be purchased with cash, should the owner of the lot and the owner of the land come to an agreement. A former owner (or estate of a former owner) could always appear sometime in the future and lay claim to a property was sold in an auction. The state law protects the previous owner's rights.
Click to expand...

So, for $20k the lot cannot have title insurance; essentially any title is toilet paper. The problem appears to stem from the fact this land was cleared by a lava flow and the state law holds that the owner of the land before the lava went over can claim it back.

What that means is that the developer who would really like to have her buy this house is also escaping that were the original owner want the lot back, he would not own the lot the house is on - exactly the situation he's in now. I don't know when the realization struck that the developer was so screwed that the original land-swap would not save him, but here we are.

And the finger pointing gets better with the ongoing case:
An attorney for PJ’s Construction said the developers didn’t want to hire surveyors, but Olson told Inside Edition this is untrue, claiming his clients did use trusted surveyors and left it up to the construction firm to make the decision on the location of the property.
Click to expand...
 
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3DDave,
The case PP cited was in Georgia, USA. It had just been referenced in an Aussie construction law newsletter.
 
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hokie66 - still not HAWAII. Georgia doesn't have right of return for VOLCANIC FLOW.

But thanks for stepping up to make a correction. That's the important takeaway here.
 
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It's scary that you don't have clear title when something is sold at auction by the state. Something is broken.

-----*****-----
So strange to see the singularity approaching while the entire planet is rapidly turning into a hellscape. -John Coates

-Dik
 
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Actually, there are two types of tax sales in certain US states. Both have some sort of redemption period (3 years or so) for owner of property and mortgage holder, which provides them the opportunity to come up with the money and pay the debt, court fees, etc. to reclaim the property.

At a tax sale, typically a Certificate is provided, that can be turned into a deed, at the end of the redemption period.

Therefore, yes original owner, if they can come up with money, could claim the lot back with house on it, within redemption period.

Now original owner would have to pay reasonable expenses of current owner that purchased certificate at tax sale, and perhaps compensate developer for reasonable improvements or prove otherwise.

So in this situation this is a very costly process of recovery for original owner, and with the lottery amounts attorneys make, could easily eat up value of asset or not?

And perhaps if current owner prevails, they get their attorney fees paid by developer and get to keep house too?

What a can of crap to sort out! This is why US is lawfare country, where BS claims can be made against an innocent person, and that person has to have deep pockets to defend themselves or they get KO'd


 
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Agree, owner was screwed, before being sued....and had to take action, and would have had to sue, to solve either way.

Investors buy property at tax sales all the time in the US, to potentially acquire property for pennies on the dollar, then sit on property for redemption period, and only perform absolute necessary repairs, till they obtain clear title to property. There is no guarantee that purchaser at tax sale will recoup all they spend on a tax sale property, before they have clear title deed to property.

You can also obtain clear title to property by adverse possession in US.
 
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It use to be if a building was built on your property by an other owner. It was yours.
There is no excuse , that's why it should c always be surveyed. True or false.
Now the owner of the property can sell the property to the owner of the building.
 
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The builder is blocked from entering the property.
A third party will handle the contracting of the demolition.
The developer is paying all costs.
A hearing is set for selecting a date for a trial concerning other damages (destruction of vegetation and such).
The judge's summary reads like a biblical smiting.
You can't sue someone asking for relief when you don't have 'clean hands' in the matter.
The developers attorney is a moron, but then so is the builder.

= = = = = = = = = = = = = = = = = = = =
P.E. Metallurgy, consulting work welcomed
 
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