Expert: Karyn Foley - 10/17/2010

Question
I recently bought a house in Jackson, MI from a foreclosure (bank owned) sale. The realtor indicated the property boundaries were well outside my house. I had to have a survey and discovered the property line runs through a portion of my house. What are my options?  

Answer
Dear Joe:
 I hope that you have the realtor's statement in writing.  It would be hard to prove unless you could confirm that was what the realtor told you.  If it was your realtor, then discuss this with the realtor's office manager or office owner.  If you were represented by a realtor, and you were told about this by the bank's representative, your realtor should initiate the discussion with the bank.  If you were not represented, then discuss it with the bank if no one else will support you.  Be prepared, however, to have the bank say that they were not aware of the property's boundaries and that their realtor said that no such representation was made to you.
 Usually, no one will ascertain where boundaries are - even if there is a standing fence.  There is only one way to prove a boundary and that is with a surveyor.  Many times fences are inside or outside of the assumed boundary lines and the majority of realtors will not even hazard a guess.  Because a fence as been "assumed" to be a boundary line, disclaimers are advised.
 Without proof of what was said or by whom, you have little to go on or to support your findings.  You must have been suspicious initially, or why else did you hire a surveyor?  
 Since you have a real problem with the fact that the property lines runs through a portion of your house, you should seek the advice of a real estate attorney.  This is scary, as you could face having to remove part of your house if the adjacent property owner wishes to fence of his property.  A real estate attorney can better advise you what to do.  
 I might have suggested a small claims court action, but with a portion of your house at risk, I am going the stronger route of a lawyer instead.  At least an initial office consultation should be undertaken.  Perhaps a lawyer can search the records and find additional documentation that might prove helpful to your situation.  At that point, some one else might be held accountable.
 There is another avenue I just remembered:  Did you purchase title insurance?  Most states and lenders require it, and that insurance should address and resolve  disputes with reference to property lines.  Please check your own paperwork, and call the title company who issued the title insurance.  I would suggest that that should be your first step in resolving this issues.  Then proceed with the realtors and attorney.
 God luck, and please let me now what happens as things progress. KARYN FOLEY