What to do about an undisclosed easement?

I bought a house 5 years ago. I just discovered there was an undisclosed easement that sets the property back 22 feet from the curb, 2500 square feet in all for the city to widen the road. I would never have bought the house if I’d known about this easement. I discharged the 2nd mortgage through bankruptcy and the primary loan was modified by the lender post-bankruptcy (Chapter 7). What are my options?

Asked on November 7, 2011 under Real Estate Law, California

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If you purchased the subject property five (5) years ago, most likely you received a title report concerning it. If so, carefully look at it to see if the easement is referenced within the preliminary report. If it is not, then you should make a claim to your title insurance carrier about it.

If there was a transfer disclosure statement signed by the seller before the close of escrow, carefully read it to see if the subject easement was disclosed. If not and you can prove that the seller knew about the easement that you are writing about before close of escrow but did not disclose it, then you may have a claim against him or her for overpaying for the property assuming your preliminary report does not reference the easement.

I recommend that you consult with an experienced real estate attormey further about your inquiry.


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