Oops! Your Swimming Pool is in the Neighbor's Backyard
Oops! Your Swimming Pool is in the Neighbor’s Backyard
Or why every home buyer should get a survey before purchasing a property. Next week, my Charlotte NC home buyer clients will be closing on their new home. There was a time during the transaction when they weren’t sure that they would be able to go forward with the purchase.
Why? The survey that was done as part of their due diligence process showed that not only did some of the concrete decking encroach upon the property next door but the pool itself had been constructed within the side setback required by town zoning. The closing attorney checked with a number of title companies to see if they would issue title insurance for this problem. They wouldn’t. This meant that in the future a neighbor or the town could demand that my clients remove the part of the pool that lies within the setback and on the property next door. My clients weren’t willing to take that risk.
Surveys and the Due Diligence Process
In January 2011, North Carolina real estate contracts became due diligence contracts. A due diligence contract means that the home buyer negotiates a certain period of time in which to investigate the property being purchased. Due diligence includes things like home inspections, appraisal, completing the loan process, ordering homeowners insurance, and anything else that the buyer wants to investigate. The buyer may terminate the contract without penalty for any reason or no reason before the end of the due diligence period.
This is what my Charlotte NC home buyer clients learned about the importance of getting a new survey during the due diligence period.
- Always get a new survey even if the lender doesn’t require one. If you close without a new survey, the title company won’t insure you for a problem that would have been discovered if you had surveyed the property.
- Have the property surveyed during your due diligence period rather than waiting until the final week before closing. Had my clients waited until late in the process, they would not have been able to terminate the contract without penalty for a problem that potentially was unsolvable.
How the Swimming Pool in the Neighbor’s Backyard Problem Was Solved
As I noted, my clients will be closing on their new home next week. Solving the pool encroachment issues was a two step process for the sellers of this home. They applied to the town for a variance from the side setback requirement. After a hearing, the town granted the variance. Even with the variance, the sellers still had the problem of concrete pool decking, the pool pump, and some fencing being located on the property next door. This problem was solved with an encroachment agreement drafted by the closing attorney and signed by the sellers and their neighbors. This agreement will be recorded, and therefore, cover every seller of the property in the future. Being friendly with the neighbors certainly paid off for these home sellers.
Want to know more about buying or selling real estate in Charlotte NC? Visit www.CarolinaSmallTownLiving.com.
Copyright 2011. Carol Fox. Allen Tate Realtors. *Oops! Your Swimming Pool is in the Neighbor’s Backyard*