What to do if we bought a piece of property next to a pipeline and now have found out that the pipeline runs under our house?

The house is in the process of being sold and this has to be disclosed to buyer, which will ruin the sale. Who is liable for the issue, the pipeline company or the person who sold us the lot?

Asked on September 6, 2012 under Real Estate Law, Nebraska


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

You need to look at the preliminary report as to the home that you are selling to see if there is an easement of record on your property allowing the pipeline on it and at its current location. From there you need to consult with a real estate attorney about the pipeline issue that you have written about to see if the pipeline has any detrimental effect on the subject transaction.

If the pipeline is part of a recorded easement and was existing when you purchased the home, then the recording of the pipeline easement placed you on constructive notice if its existence under the law. Constructive notice is deemed actual notice under the law.

The facts of your question do not allow me to render an opinion as to liability issues at this time. Hence you need to pull a preliminary report on the property first and see if the pipeline is part of a recorded easement on your parcel.

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