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The bank isn't required to disclose anything, they are exempt on REO transactions. However, if the listing agent is aware of an issue, they are required to disclose.
Different states have different disclosure laws, but I'm guessing that a title search should have brought up something related to this. The title insurance company probably dislcosed this as a permitted exception and wouldn't typically cover this sort of thing. In effect, they disclose what they know then not insure over it.
Also, your appraisal might have shown something. Appraisers aren't required to do a title search, but if you had a local appraiser then they might have been familiar with what was going on.
The bank isn't required to disclose anything, they are exempt on REO transactions. However, if the listing agent is aware of an issue, they are required to disclose.
Would the listing agent definately be aware of it? I know the bank was paid for the easements when listed with another agency.
There a couple of missing pieces. Were the easements in the title report? If not the Title Co. is clearly on the hook. In many states the bank would have to disclose if it had knowledge. If it got money for the easements it had knowledge. The widely held belief that the banks are free of responsibility is mostly untrue in many states.
Serious lawyer time. I would be leery of the closing lawyer as well as it appears this is an eastern state. He has bacon in the transaction.
It is still going to be tough. Do you want the house with the new roads? Think about it because you may be able to get money but not able to reverse the deal.
Would the listing agent definately be aware of it? I know the bank was paid for the easements when listed with another agency.
The other agency would know, but likely not the current agent. The bank would need to disclose in Oregon. It is assumed banks know nothing which is why they are exempt from filling out the disclosure forms, but they can't commit fraud. Unfortunately until a homeowner takes them to court, they will hide behind the statue and not disclose.
We were given the title report at closing..after we gave the lender our check. The closing attorney went over a few things and gave us a folder that contained the report. It was never discussed what was in the report. The easements are in the report..however closing was basically over when we were given it.
There a couple of missing pieces. Were the easements in the title report? If not the Title Co. is clearly on the hook. In many states the bank would have to disclose if it had knowledge. If it got money for the easements it had knowledge. The widely held belief that the banks are free of responsibility is mostly untrue in many states.
We weren't given the title report until we were sitting at the table..after we had done the financial part of things. The easements are in the report though.
Serious lawyer time. I would be leery of the closing lawyer as well as it appears this is an eastern state. He has bacon in the transaction.
MY thoughts exactly!!! This has me worried for sure.
It is still going to be tough. Do you want the house with the new roads? Think about it because you may be able to get money but not able to reverse the deal.
We absolutely would NOT have bought given the easement situation. 100% positive on that. We don't want to live here surrounded by roads/highways. It would be hard enough to endure had we been the ones compensated for it but things to go down this way is just wrong. I doubt things could be reversed but we would take money..then put the house up for sale.
On a side note..another issue of ours is we paid the market value for a house without those easements. Our appraisal states no easements that adversely affect the property. Umm 2 roads eating up our acreage def qualifies as adverse. So the bank loaned on a house for more money than it is really worth. So if it had been found..the house wouldn't have appraised for enough and we couldn't have gotten the loan. Is the appraiser liable on any level? Things are screwed up on so many levels.
We were given the title report at closing..after we gave the lender our check. The closing attorney went over a few things and gave us a folder that contained the report. It was never discussed what was in the report. The easements are in the report..however closing was basically over when we were given it.
You still should have read the report. Sounds like you never read it.
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