Please help with real estate title issue!

Question

I just got the title back on a condo I am purchasing and one of the exceptions is that our building encroaches over the building line by 12 feet! To me this seems like a big issue. My lender signed off on the title and no one else seems worried (the building was built in 1918). What gives? Is this a problem? I don't want to end up with a law suit on my hands down the road and cannot rely on title for "coverage" because it's listed as an exception to the title policy. Please help!

Answer 1

If this condition has existed since 1918 you can pretty much assume it will be considered an easement and there is essentially nothing the other party can do about this (in my states if a condition list this exists for 20 years and the injured party does nothing then after the 20 years they lose all rights to remedy the problem - similar to squatters rights.).  

Make sure you get title insurance (which you should do regardless of this) but I really can't see the other party being able to do much about this.

Answer 2

Your title company is the best one to answer this question.  You can go to your county office and look at pass title info and see if there was an easement ever given on this property.  

Answer 3

Contact the seller's real estate agent and tell them that you want that exception removed from the title.  Sometimes when a building has been there long enough the title insurance company can waive the exception.  Or the seller may have to get a deed from the adjacent land owner.  This could be a potential problem, and you are now aware of it, so any claim being made to the 12 feet would impact you.  Do you have an attorney representing you in the purchase.  If so turn this over to them, if not think about it.