Tuesday, May 5, 2015

Property lessons

We learned last week that the offer on our house was rescinded...bitter disappointment!

There was confusion about property lines, road allowances and possible encroachment of our back deck. After visiting City Hall to enquire about the property the buyers had even more concerns. They insisted on a survey to determine where everything was located. We contracted with Browne & Johnson to conduct the survey. The buyers didn't wait for the results, deciding instead to cancel the offer.

During a subsequent talk with the City Hall employee, we asked for details about his conversation with the buyers. He explained that IF our deck encroached on city land and IF the land was either sold for development or converted into a road, the deck would have to be shortened or removed.

We have lived here for 24 years. The deck was in its current position and size before we bought the house and the road has always been where it is now (at least 35 years). We were not aware of encroachment at that time (Buyer beware). What are the chances that the City would decide to spend money to relocate a road that leads to just two houses? He agreed that chances were slim that the City would move forward with either option but that he felt the need to explain this to the buyers. He was just doing his job but his explanation discouraged our buyers. Since our discussion he has sent an email describing that neither possibility for future land use is likely in the near future.

So, we had the survey done, at our cost, and determined that the back deck does encroach city land by about 18 inches. Do we spend more money to reduce the size of the deck or do we disclose this information to future buyers with the option of reducing the purchase price to cover the cost of future reduction IF it becomes a problem?

1 comment:

  1. Sorry you lost the sale, I feel for you. It seems like the rules and regulations relating to property sales just keep on moving. As for the deck, if you allowed a sale price reduction based on the future renovation of the deck, remember that prices to do the deck renovating work will keep on rising.

    Melvin @ Evolve Group