I know my property has a boundary issue, but I plan to sell the house next year. Why should I solve this boundary issue when it will soon no longer be my problem?
A: Don’t assume the boundary issue won’t be your problem. If a potential buyer reviews a survey as part of their due diligence, this boundary issue could delay or even terminate the closing, and possibly lead to a substantially reduced sale price. In a worst case situation, vendors are sometimes required to have a Reference Plan deposited and a new deed description prepared in order for the transaction to close. If you have a title insurance policy, that insurer may have a solution if you can make a claim. As laws pertaining to the selling of real estate are moving in the direction of total disclosure, it is prudent to disclose your knowledge of problems to potential purchasers. Certain title issues, such as longstanding adverse possession and prescriptive right of ways, are time-sensitive and may become a detriment if left undisclosed. Any seller who is providing a "Sellers Property Information Sheet" has to disclose what they know. Also, some boundary problems can potentially be resolved before the house is put on the market. Take action now—and seek legal advice to avoid an expensive mistake.
January 15, 2018 | View: 586 | Categories: Q&A