Seller did not own property for sale

[G.Hammond]

What is the name of your state (only U.S. law)? NH

I was buying a property from HUD, and had an accepted and ratified sales contract with them. I incurred a few thousand dollars in various inspection costs, but the day before closing the title attorney was notified that the neighbor had complained of an encroachment--in fact, the encroachment amounted to about 1/3 of the property that HUD was selling to me. HUD cancelled the contract when the issue was brought to their attention.

Do I have any recourse to recover the expenses I incurred in inspecting the property, since it was done under false pretenses?

Thank you
Grant

 

[justalayman]

for it to be under false pretenses, HUD would have had to know there was an issue. Were they aware of it?

 

[FarmerJ]

So have you been able to figure out exactly where the lot lines are ? so you can see exactly where the true lot lines are instead of just a realtors or any one elses presumptions of lot location ?

 

[HomeGuru]

What is the name of your state (only U.S. law)? NH

I was buying a property from HUD, and had an accepted and ratified sales contract with them. I incurred a few thousand dollars in various inspection costs, but the day before closing the title attorney was notified that the neighbor had complained of an encroachment--in fact, the encroachment amounted to about 1/3 of the property that HUD was selling to me. HUD cancelled the contract when the issue was brought to their attention.

Do I have any recourse to recover the expenses I incurred in inspecting the property, since it was done under false pretenses?

Thank you
Grant

**A: was there an encroachment agreement already recorded on title? If not, what was encroaching and wasn't a current survey completed and provided to your for review way before closing. Must be a large structure for it to have encroached on 1/3 of the property.

 

[G.Hammond]

I'm not sure if HUD was aware of it, but it seems unlikely that they were not. The neighbor had had the lots surveyed in 2008 and sent notices to the previous owners in 2009 and 2012, and again to the foreclosing bank in 2012, I think prior to them passing the property on to HUD.

Actual encroachment was only very minor, but the land offered was around 30,000 square feet and 9,000 of it is owned by the neighbor (the neighbor is a large camp).

 

[HomeGuru]

Are you talking about vacant land? If so what was encroaching?