Someone goof on my lot

What is the name of your state? South Carolina
I bought my house in 2002 there was NOT a survey done as the mortgage company did not require it. Well, I got a letter that states that my property is encroaching onto lot next to me by 16 feet.... this puts my master bedroom on the lot line. I have Title Insurance.... Will I be liable or will the title insurance take care of this... I bought this property thinking that I had a oversized lot according to the realtor that showed it to me... with a right - a-way beside me.... I do not have the money to buy this lot next to me... what am I going to do.... this house was built in 1997 how could that have happend ? HELP

LITTLE RED said:

What is the name of your state? South Carolina
I bought my house in 2002 there was NOT a survey done as the mortgage company did not require it. Well, I got a letter that states that my property is encroaching onto lot next to me by 16 feet.... this puts my master bedroom on the lot line. I have Title Insurance.... Will I be liable or will the title insurance take care of this... I bought this property thinking that I had a oversized lot according to the realtor that showed it to me... with a right - a-way beside me.... I do not have the money to buy this lot next to me... what am I going to do.... this house was built in 1997 how could that have happend ? HELP

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Contact your title company.

Likely the Standard Survey Exceptions were part of your final title policy in Schedule B. That means that the title insurer, in the Owners Policy, includes standard language that creates an Exception from Coverage for survey matters that can only be removed by providing a survey to them prior to closing that they deem sufficient to remove the survey exception.

The title insurer is ONLY responsible to the buyer for structures that overlap boundary. easement or set-back lines if they remove the standard exception in the Owners Policy.

The language is basically like this:

"Schedule B of the Policies to be issued will contain exceptions to the following matters unless the same are disposed of to the satisfaction of the Company"

and then Item 2 is normally:

"Encroachments, overlaps, boundary disputes, shortage in area or any other matters which would be disclosed by an accurate and comprehensive survey and inspection of the premises."

Which means that normally, the title company is NOT on the hook for a matter such as a structure in the wrong place UNLESS they were provided a survey and removed the exception. The lender, however, likely was provided survey coverage as part of his lenders policy, which ONLY really becomes a risk to the title insurer if the lender forecloses.

Is the house a new build?

If not, how old is the house?

Who did you buy it from?

Did you have a REALTOR or an Attorney?

Related SC Statutes (Law) on Disclosure:

Link: http://www.scstatehouse.net/code/t27c050.htm

SECTION 27-50-40. Disclosure statements; contents; owner options.

(A) The owner of the real property shall furnish to a purchaser a written disclosure statement. The disclosure statement must contain the language and be in the form promulgated by the commission and the form may be delivered electronically through the Internet or other similar methods. The commission may charge a reasonable fee for the printed form but shall post the form for free downloading on its public website. The disclosure statement must include, but is not limited to, the following characteristics and conditions of the property:

(5) the zoning laws, restrictive covenants, building codes, and other land- use restrictions affecting the real property, any encroachment of the real property from or to adjacent real property, and notice from a governmental agency affecting this real property;


SECTION 27-50-110. Agreements by parties relating to physical condition of property to be sold "as is".

Nothing in this article is intended to prevent the parties to a contract of sale from entering into agreements of any kind or nature with respect to the physical condition of the property to be sold including, but not limited to, agreements for the sale of real property "as is".