HELP - Real Estate deal gone real bad (foreclose, insurance)

[cas965]

I'm hoping someone can help me. October 2006, I sold some undeveloped land. I agreed to carry a small amount and received the bulk of the purchase price at the time of closing.

In the purchase contract I added an additional 7 day period for the buyer to come look at the land and have final approval. I did not have any surveys done on the property as of yet, since I had not done anything with it.

After the close the buyer then surveyed the property and found out that there are some water easements that would restict the size of his house and placement on the four acres. He now says since he found this out, he feels that he not only does not want to pay the note, but I need to give him 30K back. He has gotten representation and this is the info that was stated in the letter. My husband is a real estate broker and they are saying that he did not give them material fact of these easements. We did not know of any when we bought the property, so this was news to us?

Any help someone can give would be awesome!!

[marc515]

I would recommend you seek legal advice on this one.

From what you stated, I can understand the buyers concern in that you did not inform him of the easement. I would think ou would have to prove you didn't know about it.

I am by no means an expert, but if he has retained a lawyer, you should too.

Good luck,.....marc

[Girl]

I agree - get a lawyer who will know more about this than folks on a message board!!

[SRHSpecialist]

Good Luck with this... If he decided to close on a property without having it surveyed first he is a dumb person to start with, it is not your responsibility to provide the survey as the seller it is his as the buyer! Just my 2 cents. Again good luck.

[Tony1790]

As always, get a lawyer. Having said that, he did not do his due diligence, he had the chance to investigate what he wanted to, prior to closing. If he doesn't pay the note, foreclose and take possession of the property, you did not have any knowledge of the incumberance on the property and should not be held liable. If you were a licensed realtor, that may make a difference, but doesn't sound like it, so you you should be ok.

If this makes it to court, ensure that you are in a position to get your legal bills covered by the party enjoining suit.

Good luck. Get a lawyer.

Tony

[renriq02]

if you guys 'closed' on the property then he should be out of luck.

IF YOU WERE REPRESENTED by a realtor...then you goofed. Your husband is a realtor....then he has to mention all material facts

His closing attorney goofed also because they should found the deed restrictions when they did title!

It doesnt sounds like there is an easement.....probably something else that wouldnt allow him to build on the 4acres....

Surveys are for encroachments....or it's done to see if you can build a 3/2 house or bigger.
I think it's called a soil test.

[Dave O]

As someone who has been on the other end of an undisclosed easement (county sewer lines) I have a lot of sympathy for your buyer. In my case I had already taken posession of the house so I settled with the title insurance company. I ddon't know whether the title insurance company went after the developer.

I'm sure that you didn't conceal the easements intentionally but put yourself in the buyer's place. You'd be ticked off.