Septic Tank discovered on hostile neighbor property

[Rockslab]

We have a rental house in NC that we have just discovered the septic tank is located on a neighbor's property. He is very hostile so there is no hope of any kind of agreement. We were in the process of selling the house when this was discovered. Naturally the buyers backed out. The lot is too small for a septic system and no other options are available. Does the title insurance we paid $300 for in 1997 cover something like this and what do we do next?
As long as the property remained in our name, the neighbor was OK, but any mention of selling and he went nuts.

 

[HomeGuru]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by Rockslab:
We have a rental house in NC that we have just discovered the septic tank is located on a neighbor's property. He is very hostile so there is no hope of any kind of agreement. We were in the process of selling the house when this was discovered. Naturally the buyers backed out. The lot is too small for a septic system and no other options are available. Does the title insurance we paid $300 for in 1997 cover something like this and what do we do next?
As long as the property remained in our name, the neighbor was OK, but any mention of selling and he went nuts.<HR></BLOCKQUOTE>

Is there an easement on title? The title company is not responsible as the title insurance only handles problems with the title.
If there is no easemnt of record, negotiate with the neighbor to give you one. You may have to pay for it.

 

[Rockslab]

There was no easement on the original deed. The problem was just discovered. We thought the septic system was at the front of the house and were quite shocked to discover otherwise. If the neighbor was a normal person, an agreement may be possible, however, is is nuts. He at one time filed charges against us (trespassing) because we were walking on his property. Also, he has threatened that if we sell the property, he will dig up the septic tank and lines. Any other ideas?

 

[HomeGuru]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by Rockslab:
There was no easement on the original deed. The problem was just discovered. We thought the septic system was at the front of the house and were quite shocked to discover otherwise. If the neighbor was a normal person, an agreement may be possible, however, is is nuts. He at one time filed charges against us (trespassing) because we were walking on his property. Also, he has threatened that if we sell the property, he will dig up the septic tank and lines. Any other ideas?<HR></BLOCKQUOTE>

Consult a real estate attorney in your area.