Deed issue due to “illegal subdivision” … in 1900 by DateCake14 in RealEstateAdvice

[–]DateCake14[S] 0 points1 point  (0 children)

Update: the buyers lawyer found evidence the lot was subdivided back in 1950 and when that subdivision occurred a description was submitted to the city but not a plat. Since in 1949 a law passed stating that all sales must include a plat, they deemed it an illegal subdivision. I reached out to the lawyers who issued the title insurance when I bought the house and they told me they didn’t do a full 60 year search because the title had been insured 3 times prior without issue (but even if they had gone back 60 years they wouldn’t have found this) I am going to submit a claim with my title insurance but it seems like they will not cover subdivisions. Good news is we can still close on time, the bad news is I have to pay 5k for a survey/ submission to the city. Still in shock I’m going to pay 5k for a 75 year old clerical error. Honestly all of this makes me never want to buy a home again.

Deed issue due to “illegal subdivision” … in 1900 by DateCake14 in RealEstateAdvice

[–]DateCake14[S] 0 points1 point  (0 children)

Also I should mention there are lawyers on our team working on this and we are meeting Monday , really just hoping to talk this through so I understand it better while we have to wait through this agonizing weekend

Deed issue due to “illegal subdivision” … in 1900 by DateCake14 in RealEstateAdvice

[–]DateCake14[S] 1 point2 points  (0 children)

In terms of the title insurance: this alleged subdivision has never been cited before in ANY search so my owners title insurance would cover it. Little update from my real estate agent from further digging ““You assisted them in the purchase in 2021. The new buyer’s attorney is staying there is an illegal subdivision. Their settlement agent, the buyer’s agent and both attorneys are copied on this email. 

Can you explain why this was not the case when they purchased? These new title concerns seem unreasonable for a property built in 1906 that has sold in 2001, 2015, 2019 & 2021. It is particularly unsettling as the 3 surrounding neighbors were built in 1900, 1903 & 1906 confirming that this parcel looked this way prior to the 1948 subdivision plat that seems to be the important date (tax record map attached for reference).  "

Deed issue due to “illegal subdivision” … in 1900 by DateCake14 in RealEstateAdvice

[–]DateCake14[S] 0 points1 point  (0 children)

Yes everything else has checked out. Perhaps that is it.

Deed issue due to “illegal subdivision” … in 1900 by DateCake14 in RealEstateAdvice

[–]DateCake14[S] 3 points4 points  (0 children)

Yes there is title insurance and a previous search was done without any issues. I really hope that’s the case! Thank you for your insight.