August 16, 2006

A Minor Hold Up

When the sellers accepted our contract on their house, there was a tiny little clause in it stating they would pay for some special title insurance (I can't remember the name and C has all the paperwork with him at the moment). This insurance would cover us in case there was ever an issue over property boundaries, house location (on the lot), etc. The title company overlooked that clause and didn't prepare the extra insurance. In preparation to accept it they must send out a representative to do a quick survey on the lot to make sure there isn't anything in violation. If the survey looks acceptable then they'll provide that extra insurance.

So at lunchtime yesterday when we were signing the closing paperwork, we noticed that they hadn't completed this aspect of the deal. It was arranged that someone would take a look at the property in the afternoon. Once approved, the paperwork would be sent back to the mortgage company and everything would be finalized. Giving us keys in hand by the end of the day.

Didn't happen.

Come to find out when the owners put up the fence across the back of the lot they never had the property surveyed. The neighbors on both sides had already erected fences so they just needed to finish the section across the back. As many people would do, they just put it in flush with the two sides that had already been put up. Unfortunately, the neighbor on the north side of our property didn't put his fence in properly. It's four feet over the property boundary. Onto the bordering property, of course. So a good sized chunk of our backyard isn't technically ours. And due to this, the title company won't approve this extra title insurance until a resolution is faced.

C spent a good part of last night trying to get quotes on having a new fence installed. Our realtor suggested that the previous owners give us half of the money it would take to move the fence, since it was technically their fault. It would then be up to us to decide whether to actually use the money to move the fence or just pocket it and hope that it never becomes an issue.

I'm hoping that we hear something soon. Rumor has it that the old owners are trying to close on their new house in Las Vegas today, but can't until everything is finalized here. Hopefully that's somewhat of an incentive to get this taken care of quickly!


JessandMatt said...

Don't you just love homeownership?! It's great, especially when things like this come up...Hopefully everything works out in the end and you don't have to put much money into it and you don't get held up too much. Keep us updated!

KrisAndRod said...

Ugh - it just figures it wouldn't go smoothly for you! I hope today brought a better outcome.

Beth said...

Mandy - Thanks so much for the HG link for me. I hope the fence issue has been resolved - everytime we've moved there has always been somthing like this to come up and its so very stressful.

WendyLou said...

Great. I hope it all works out.

Glad to hear all went well with the trip, even if you spent all that time driving. Yuck.

Hope things are going well. Take it easy and rest up.