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A county easement mess: Who is responsible?

By
Real Estate Agent with Thompson Company, REALTORS® 240.593.2860 MD594797

Below is a "nice" example of a COUNTY EASEMENT MESS.

The question of the day: WHO IS RESPONSIBLE?

Mr. Buyer bought a townhouse in a condo development about 5 years ago. It's a mid-unit in a block of 10 which was built in 1980. All units have a fenced in limited common area out back, extending 25 feet out with more or less land- and hardscaping. Mr. buyer did do his homework and read the condo docs from front to back. His lender did not require a survey at time of purchase.

Fast forward 5 years, Mr. buyer is very happy with his little "yard", maintaining and enjoying it until he - and his 9 neighbors - receive multiple notices, certified, delivery confirmation and signature required:

Dear Sir/Madam,

Currently, the County is performing the construction of Capital Project xxx Water Main Replacement. During the construction it was brought to our attention that the addresses xxxx to xxxx have erected permanent structures, including but not limited to, fences and sheds within the limit of the County Public Water Main Easement. The encroachments of this section of homes are in violation of Section 18, Subtitle 1 of the Code of Ordinances.

All violations must be remedied as soon as possible. Any structure removed by the County will be discarded. Attached please find a drawing which shows units xxxx to xxxx have approx. 13 feet and units xxxx to xxxx have approx. 9 feet from the unit foundation to the Public Water Main Easements. The water main is centered within the easement.

Regards,
The County

The neighbors get together for an impromptu meeting and not one of them has any record from the Condo Association disclosing the limited common element to be 9 or 13 feet. All records show it to be 25 feet. Furthermore, according to the rules & regulations all exterior improvements require prior approval from the Architectural Committee, thus all fences and sheds had to be requested in writing and were approved by the Board in the past. All unit owners acquired their property with the fence in place!

Things heat up and a special meeting is called between the unit owners, the Board of Directors & the Associations legal Counsel and County representatives. A serious attempt was made to find a solution. The county suggested that the Board submit a petition on behalf of the unit owners for the fences to be re-erected. The county is likely to allow encroachment of the easement but within limits - no permanent structure is allowed within 3 feet of the "ditch" thus adding another 6 feet to the 9 and 13 feet respectively, but still taking away 6 to 10 that the owners have enjoyed thus far.

Understandably, all owners are terribly upset. In their opinion they were misled by the Condo Association and led to believe they had "exclusive right of enjoyment of 25 feet of limited common elements" when in fact they hadn't. Most would not have purchased their unit if either it was not fenced in to begin with or a disclosure was made that the fence is in violation of County regulations and the limited common element is only 9 or 13 feet.

Furthermore, all unit owners are required to replace their fences at their own costs. The Board appears to also be in favor of over-regulation and will not allow any landscaping beyond the 9 or 13 feet, even though the County does not consider landscaping a permanent structure.

And if this wasn't enough, the unit owners also face several days or weeks without cable/Internet as the Board authorized the installation on the easement which now needs to be "studied" and reconfigured. Nobody yet knows what will happen to the transformer that encroaches on the easement as well and will have to be removed in order for work to be completed.

 

What do you think?

Do the unit owners have any rights or merit to pursue their case? If yes, against whom? Do they even have a case or do they just have to accept a smaller "yard"? How would it affect their chance for resale and value?

Posted by

Andrea Bedard
Thompson Co., REALTORS®

Silver Spring, Maryland
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Comments(12)

Sarasota & Manatee Counties FL
SaraMana Properties - QuickFreeMLS.com - Bradenton, FL
QuickFreeMLS.com - Listings In Paradise

I am not about to wade into that mess with legal advice, but I can say that a lawyer's opinion is the obvious next step.

Jul 29, 2011 08:40 AM
Andrea Bedard
Thompson Company, REALTORS® 240.593.2860 - Silver Spring, MD
Fluent in Real Estate & German, M.A. ABR ASP CIPS

Thank you! That's the question I have been asked: Is it worth it for the unit owners to pursue it or do they not stand a chance and should just accept it?

Jul 29, 2011 08:48 AM
Mona Gersky
MoonDancer Realty, Dillsboro,NC - Sylva, NC
GRI,IMSD-Taking the mystery out of real estate.

They need legal advice and they need it yesterday.  Yikes what a mess.  I'm curious about this statement and the word hardscaping? "with more or less land- and hardscaping"

Jul 29, 2011 10:11 AM
Andrea Bedard
Thompson Company, REALTORS® 240.593.2860 - Silver Spring, MD
Fluent in Real Estate & German, M.A. ABR ASP CIPS

Thanks Mona.. the owners use their yards differently, some have just grass, one has a patio extending the whole 25 feet and others have a grassy area and raised flower-beds made out of wood or stacked castle walls. Hardscaping referred to the patio and the castle wall, everything out of concrete, rocks etc..

Jul 29, 2011 10:24 AM
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Wow!  What a mess.  I don't think I've seen one that messed up in 20 years of real estate work.  Like the others, I certainly wouldn't dare offer legal advice, but I would like to know how the association came by their lines.  This one may take Sherlock Holmes to decipher.  Good luck!!  Suggested. 

Jul 29, 2011 01:22 PM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Lawyer Up!  

The Title Companies or Title Attorneys that handled those Closings, the Condo Association, the Sellers, and the Listing and Selling Brokers and Agents, may be culpable or liable.  Nasty words like "Misrepresentation" and "Failure to Disclose" come to mind.

If I had played any part in this story, I would be meeting with my Attorney.  If I had acted as a Broker in one of these Sales, I would be checking my E & O Policy.

Jul 29, 2011 01:30 PM
Eric Crane -- Your Full Service, Discount Fee Realtor®
DPR Realty LLC - Gilbert, AZ
Greater Metro Phoenix Arizona

Hi, Andrea -- that is a shame, but definitely the approach is to get a lawyer on their side.  If they have to give up a portion of the land, one would think they take a hit to their value. 

A quick story that is only partially on point, but it demonstrates the nature of a fight between a homeowner and a municipality...
my Father-in-Law built his original Arizona home in a portion of Phoenix that was still rural in the 1970s.  Over time, the building boom unfolded and he wound up having a six lane, divided road in front of his home -- I kid you not -- from cows to a six-lane divided roadway.  Fortunately, the house was on a lot of land and had a good set back.  But they ended up using a strip of his land to put in the final lane. 

They offered him a nominal amount of money for the land.  He sued them.  To make a long story short, they waited until the night before the trial to offer him 10 times their original offer.  Which he accepted.  The moral of the story is that what they first offer in negotiations may not be representative of what eventually gets done.  Sometimes you have to force the situation.

How many of his neighbors who also had land bordering the road just took the initial money and shut their mouthes?

Have a great weekend! 

Jul 29, 2011 01:32 PM
Mihaela Stoops
Aloha Realty Group - Lahaina, HI
REALTOR - Broker, Your Maui Real Estate Professional

Hello Andrea! I think the owners need legal advice. It seems to me that there should be some "easement agreement" on record, between the developer/AOAO and the water company. This agreement would set the terms ( how many feet from the main line one can not build any structures) and if there are no such terms, than County regulations may apply. i think it is more efficient to hire a legal expert, have him/her dig all the records and discuss it with the County, if needed.

Jul 29, 2011 01:36 PM
Andrea Bedard
Thompson Company, REALTORS® 240.593.2860 - Silver Spring, MD
Fluent in Real Estate & German, M.A. ABR ASP CIPS

Mike, you wouldn't happen to be friends with Sherlock?! I wish I knew what the association is thinking, as far as I understand it's a "ooops Sorry" on their end & that "they did not know either" - The latter does not make sense, the original easement is recorded in the subdivision deed, but that's the only mentioning/record of it as far as I can tell.

Fred: Thank you for your input! I had been thinking Title & Condo on my end ... and in one owner's case also surveyor since there is no easement drawn into her survey! Imagine that - she seems to be the only case, however, in which the lender did require a survey to be done.

Eric: Your dad's story makes me a bit optimistic. Good for him - at least luck turned around for him in the end. Since it's a condo, it's not the owners' land, it's "just" a limited common element.. but I agree with what you are saying: having 10 feet less than the competition could make a difference when selling.

Mihaela: I'm not sure.. I was told that nobody knows what the original agreement was. The easement is clearly marked in the subdivision deed recorded in the late '70s but, again, none of the owner has any record with their closing docs and their is 0 mentioning in the condo docs that limited common element is less than 25 feet.

Thanks so much everybody. You all have confirmed what I have been thinking...

Jul 29, 2011 02:24 PM
C. Lloyd McKenzie
Living Albuquerque - Albuquerque, NM
Living Albuquerque

Good Evening Andrea:

 That's a big mess!  The need an Legal Representation ASAP.  These municipalities are run by bureaucrats and when they take a position, it is difficult to get them to change. My question is how did this happen?  The  survey was not done.  That could be problematic even for the Buyers' Agent.  Seems like there is a lot of material misrepresentation here.  There is a big difference between 13 and 25.

Well let those with the deepest pocket step forward to the front of the line.  .

Jul 30, 2011 01:54 PM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Andrea, I am not going to give legal advice because that is not my field, but I would say that those Condo owners have a legitimate case and should contact a Lawyer.

Jul 30, 2011 02:48 PM
Andrea Bedard
Thompson Company, REALTORS® 240.593.2860 - Silver Spring, MD
Fluent in Real Estate & German, M.A. ABR ASP CIPS

C Lloyed: I wish I knew how this happened! Negligence, misrepresentation and errors are all over the place..
Most lenders did not require a survey when the owners purchased. There is only one owner I'm aware of who is actually in possession of a survey and it does not show an easement... I'm most optimistic for her.

George: Thank you. Some of the unit owners are following that advice and are having their documents reviewed by legal counsel for starters...

All I can say at this point is that the mess just keeps getting bigger on a daily basis... and from all the information I'm gathering, I'm not very optimistic. I will follow-up on this one and blog about the outcome.

I appreciate your input!

 

Jul 30, 2011 04:11 PM