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Problem With New Home Construction

REM #A739

By Ilyce R. Glink

Summary: Here is a real problem with new home construction. A ThinkGlink reader had his new home built on the wrong lot. The owner hired an agent, title company, builder and lender and now he has a mess. Ilyce explains why it might be time to hire a new real estate lawyer.

Q: I am currently involved in a lawsuit involving my house. My home was built on the wrong lot.
 

Not part of the house, mind you, but the entire thing was built on the wrong lot.

I had a Realtor, builder, lender, title company – all of the parties I thought I needed in order to have a smooth transaction. Unfortunately, the house still got built on the wrong lot.

We have been dealing with the issues involved for over a year, and the parties involved have now decided that they can come to a settlement agreement because the builder is willing to pay off the plaintiffs in exchange for the lot that my house was supposed to be built on.

I cannot get any good information from my attorney because all he is interested in is getting his fees paid. I am of the opinion that I’m not going to settle for that, even though it would get me out of this situation.

I am not willing to allow the builder to turn a profit for his (and other people's) mistakes by taking the vacant lot and building a house on it to sell. Any advice you can give me would be greatly appreciated.

A: If you don't feel as though your attorney in the matter has your best interests at heart, get a second opinion. If you feel as though the attorney has sold you out without your consent, you can contact your state’s agency that regulates attorneys and file a complaint against him or her for his or her failure to represent you properly.

As far as the builder making lemonade out of his lemons, you don't have any control over that, and in any case, that isn't what you should be focusing on. I think you should focus on what's happening to you and your financial stake in the game.

The way I see it, a good settlement that will mean you’ll wind up with good title to your brand new home. Whether the developer gets additional cash or not, you have to be happy happy living in the home even if it is on the “wrong” lot.

By the way, your Realtor and lender would have relied on other parties to determine that the home was built on the right lot, just as you would have. You can discuss it with your attorney, but you should have found out about the lot issue at closing if you had a survey for the lot prepared. If the description on the survey matched the description of the lot you were buying, then, perhaps, the title company dropped the ball.

You need a great attorney to help you think this through and make the right choices. I hope you find one.

NOTE: This column is distributed by Real Estate Matters Syndicate, PO Box 366, Glencoe, Illinois, 60022. This column may not be resold, reprinted, resyndicated or redistributed without written permission from the publisher.

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Ilyce
Ilyce

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