Divided Parcel - Sold house in 2011 - Still own a sub-divided parcel of land

[laurakaye]

What is the name of your state? INDIANA

Bought house in 1996/Sold in 2011. It was purchased by a flipper, who resold it in 2012. During the time I owned the house, there was a legal dispute centered around a 'rails to trails' project. At the very back of my property, there were abandoned CSX railroad tracks which our city wanted to turn into a bike/walking path. The city tried to acquire the land through eminent domain and a lawsuit ensued as the landowners sued CSX to determine who owned the land -- CLARK v. CSX TRANSPORTATION, INC., Appellee-Defendant. No. 29A02-9902-CV-139. Following this decision, the landowners were paid a modest amount by the city. That process created a second parcel on the original land. (I am not completely sure of the details, but in the end, the parcel was split. I didn't know this until recently.)

One of my old neighbors recently told me the present owner of home is planning to file a lawsuit against me to acquire the rights to the subdivided parcel of land. I was not aware it was in my name. I searched the assessor's office and found that ownership of the the second parcel of land is definitely, as of this moment, still mine. Of course there are back taxes penalties.

I am not sure what to do at this point. If I pay the taxes, the sub-divided parcel of land will continue to be mine. I don't want to ignore the taxes because it will affect my credit.

I'm just wondering what I should do.

Thank you i advance for your help.

 

[adjusterjack]

I'm just wondering what I should do.

Gee, did it ever occur to you to call up the other owner and say something like "hey, no need to sue me, it's yours, I'll quitclaim it to you as soon as you pay the back taxes which will probably be cheaper than the cost of hiring an attorney for a lawsuit."

Try that and see how it goes.

 

[laurakaye]

Gee, the reason I asked was I didn't know what my options are.

I don't know even a little about quit-claim deeds. (Now I've googled and I understand)

If there is simple a way to turn it over to her without my having to incur any expenses - then that seems reasonable. I was told she was going to sue me - and since she knows all the particulars (apparently), then I guess she could have reached out to me, too.

Thanks for your insight. Truly appreciated.

 

[justalayman]

Tell her that if she pays the taxes and takes care of all the work (including paying to have the deed written) it’s all hers.

 

[LdiJ]

What is the name of your state? INDIANA

Bought house in 1996/Sold in 2011. It was purchased by a flipper, who resold it in 2012. During the time I owned the house, there was a legal dispute centered around a 'rails to trails' project. At the very back of my property, there were abandoned CSX railroad tracks which our city wanted to turn into a bike/walking path. The city tried to acquire the land through eminent domain and a lawsuit ensued as the landowners sued CSX to determine who owned the land -- CLARK v. CSX TRANSPORTATION, INC., Appellee-Defendant. No. 29A02-9902-CV-139. Following this decision, the landowners were paid a modest amount by the city. That process created a second parcel on the original land. (I am not completely sure of the details, but in the end, the parcel was split. I didn't know this until recently.)

One of my old neighbors recently told me the present owner of home is planning to file a lawsuit against me to acquire the rights to the subdivided parcel of land. I was not aware it was in my name. I searched the assessor's office and found that ownership of the the second parcel of land is definitely, as of this moment, still mine. Of course there are back taxes penalties.

I am not sure what to do at this point. If I pay the taxes, the sub-divided parcel of land will continue to be mine. I don't want to ignore the taxes because it will affect my credit.

I'm just wondering what I should do.

Thank you i advance for your help.

How much are the taxes on this small parcel? If they are minimal I would agree that you should simply pay them in order to protect your credit.

As far as what to do after that point? I would just wait and see what happens.

 

[laurakaye]

How much are the taxes on this small parcel? If they are minimal I would agree that you should simply pay them in order to protect your credit.

As far as what to do after that point? I would just wait and see what happens.

The taxes are +/- $1,000. The initial advice she is getting from her attorney, according to my neighbor, was to wait until she owned it for 10 years and then she could take possession via adverse possession. (32-21-7-1 et seq.; 34-11-1-2) As far as waiting to see what happens, I guess that means that eventually she would sue me. That's where I'm concerned about it costing me money -- if she she initiates a lawsuit to gain legal title to it. Getting the paperwork straight is certainly worth more to her than it is to me. The land value in that area has increased exponentially and many of the owners are looking to sell, and while this extra parcel hasn't been an issue during the last two sales transactions, it's bound to pop up sooner or later. The land is obviously worth nothing to me ... it's not like I'm going to pitch a tent on the small piece of land located at the back of her yard.

Tell her that if she pays the taxes and takes care of all the work (including paying to have the deed written) it’s all hers.

I appreciate the input. I don't know of the costs involved in conveying ownership to her, so that's helpful to know. I guess that was the reason for my original question.

 

[FlyingRon]

It would still be cheaper for her to just pay the taxes (she'll have to do so anyhow) and let you deed it to her. An adverse possession suit is going to take a court appearance, filing and legal fees, etc... even if you don't oppose it.

 

[xylene]

Maybe this parcel has more value than 1000 dollars.

 

[laurakaye]

It would still be cheaper for her to just pay the taxes (she'll have to do so anyhow) and let you deed it to her. An adverse possession suit is going to take a court appearance, filing and legal fees, etc... even if you don't oppose it.

And I would not oppose it - there's nothing I want or need with a strip of property on the back of someone's lawn, not to mention there's probably a liability exposure, and of course, I don't carry insurance for it. I only learned of it a few days ago. I wonder why her attorney didn't just suggest she contact me to see if we could work it out.

Thank you!

 

[laurakaye]

Maybe this parcel has more value than 1000 dollars.

How would I go about finding that out? Anecdotally, the area was recently annexed by the city - it was originally in an area that was considered an unincorporated part of our county. After years of legal wrangling, the city won the right to annexation. The city that annexed it is considered one of the best places to live in America (https://www.indystar.com/story/news/2018/03/10/carmel-won-another-best-places-live-rating-and-beat-out-other-hamilton-county-city/413908002/). The property values have exploded - the house that I paid $89,000 in 1998 is currently valued at +/- $275,000. (The entire "neighborhood" is one street - a dead end/cul-de-sac - with about 25 'mid century modern' homes. There are two houses on the street currently listed in the $280s - and recently one was listed for $225, but sold for $282 after a bidding war.

That being said, I can't "do" anything with this little strip of land, other than have title to it. (Unless, of course, I roll in one of those 'tiny houses' ... *grin*)

 

[adjusterjack]

Oh, for Pete's sake, call her up already.

 

[quincy]

...

That being said, I can't "do" anything with this little strip of land, other than have title to it. (Unless, of course, I roll in one of those 'tiny houses' ... *grin*)

If your neighbor is being obnoxious and the property values in your area have exploded, perhaps you could pay the back taxes on your tiny strip of land and build a "spite house," in response to the neighbor's threat to sue.

Here is a link to the history of a famous (albeit no longer existing) spite house in New York, built on a 5' wide strip of land in response to the neighbor's refusal to pay for the land what its owner wanted:

http://daytoninmanhattan.blogspot.com/2012/08/the-lost-1882-spite-house-no-1215.html?m=1

 

[HRZ]

Adverse possession is not quite as simple as waiting out a 10 year clock ...you can resent the clock to zero at any time by showing up on your property ...with a good record of same ...and the homeowner might be required to grant you an easement of necessity to access these lands ..I doubt it but would not rule it out absent you do more homework.

...I have a friend who thought inaction over a small scrap of land adjacent his was cheaper than owning it ...it was ...until somebody got permits to put a small house on it while he snoozed .

I values in your area have soared ..the home buyer might be inclined to pay a modest sum to improve thier holdings ...do some homework as to land values and make owner a business like offer including back taxes.

 

[laurakaye]

I appreciate your insight. Thank you.