How would you feel if the new construction property you’re about to purchase was partially fenced off by your neighbor? Here’s an interesting example of how we helped a new construction home buyer ward off a potentially thorny problem very near their closing date.
Under our advice, the buyers used their own home inspector throughout the construction process. By the final stage, the inspector did a thorough check on the exterior, including the proximity of the property lines. Upon closer review, he found that the lot came up about 250 square feet short of what it should have been, as designated on the plat map. The back of the yard was bordered by the fence of an adjacent property. That’s a good chunk of usable space that the neighbor thought was his own! Obviously, this is a red flag for any property owner.
First, a little background on new subdivisions. During development, a plat map is created, which shows each of the individual lots and their exact dimensions. At this stage, builders are required to put stakes (called pins) in the ground to mark the exact corners of each lot. When it’s time to build, they create individual plot plans that show where the proposed home will be located on any given lot. If there is question as to where a structure resides within a lot, they do a location survey using the pins to measure the distances from the structure. We assumed in this case that the neighbor erected the fence after the pins were placed, since it takes quite a bit of time to build out every new home.
Remember, when the inspector found the property line issue, the builder still owned the land and the buyers had not yet closed on the property. When we brought the issue to the builder’s attention, they initially said the buyers could take care of the problem after closing. Suspecting that a property line dispute could become a costly and inconvenient battle to engage in with new neighbors, we recommended that the buyer not close on the property until the builder handled the problem. The builder was still the legal owner and the boundary error had been caught prior to transferring the property to our clients. After all, what Buyer wants to be the one to upset a new neighbor before they even move in!
The decision to move the closing date definitely lit a fire under the builder. Their legal team promptly contacted the neighbors, who indeed disputed the boundary. Fortunately, the plat map showed it was a clear-cut case in favor of our Buyers, and the neighbor had to remove the portion of the fence that was on the new property. Representatives of the builder issued a letter taking full responsibility to resolve the problem, and even a voicemail for the buyer affirming that they would handle any future property disputes regarding the land. Being thorough representatives of our clients, we promptly saved the letter and voicemail (as an AMR file) for future reference, if needed!
Had our clients not used a Realtor for their new build, it’s easy to see how the property issue could have been missed. They may not have used their own inspector (a step that builders often tell buyers is unnecessary) and wouldn’t have discovered the square footage shortage at all or until a later time when they had a specific need for the space. At that point, they would have been on their own to handle an uncomfortable issue at their expense.