Illegal parcel split?

Question

I am interested in purchasing a bank-owned property in Northern Michigan, however there seems to be one major problem.  The GIS information for the parcel says that it was "illegally split" last year.  Basically it appears that somehow they managed to split a larger parcel into three smaller parcels, leaving one of them without road access.  I believe this is why it's called an illegal split.

I called the listing agent and he was very pessimistic about the property and didn't even want to discuss how to proceed with remedying the situation.  At this point I don't have a buyer's agent, because I'd like to get some idea of what I'm in for before signing with an agent.

I've called the local Equalization office for some assistance, but so far no one has returned our calls.  I've also left messages at the owning bank, but again, no one has returned my calls.

Can anyone help me understand how to proceed to fix the lot split issue?  Does it actually need to be fixed prior to purchasing the property?

Thank you very much!

Vanessa Hollopeter · Answer

I’m in Northern Michigan, and have a similar issue. Out of curiosity what county was this out of or what area?

Dion DePaoli · Answer

The township should have a building and zoning commission, which sounds like what you mention is the planning division.  Depending on the size of the township, just call the courthouse and ask around.  You want the department that is responsible for land division.  Land division no matter how small still has to be approved by the government.

It sounds wacky, not sure why you would want this property.  The land would have required approval prior to being divided up.  Typically someone, usually an engineer would have to stamp the plat map with the proposed division in order for it to be approved.  Which also means someone would have had to submit the plan for it to be stamped.  It then becomes of record once stamped and new legal descriptions are issued and updated.  Is there a separate legal description for each piece of land now?

There is obviously a relationship between all three parcels of land which you have not clearly mentioned in the story.  Any mortgagee related to the parent parcel maybe looking into voiding the split.   As Jon mentioned, not having ingress and egress rights on the property is a major problem.

It is possible the previous owner filed paperwork which is causing the confusion and it can be fixed.  Sometimes this confusion happens regardless of a plat not being stamped and sometimes the courthouse can just be wacky too.  If you obtain a title abstract on the property it would show a bit more of the history and you might be able to make heads or tails out of what has happened.

Ann Bellamy · Answer

I don't think speaking to a department that handles mapping is going to help you.  There is a department responsible for approving subdivisions, and that's who you need to speak to.  In addition, if the subdivision was recorded, the plans may also be recorded, and online.  You may be able to backtrack to the engineering firm who handled the survey and approval process, and get some insight there.

Robert Fisher · Answer

Thank you for the quick replies.  This is my first time dealing with real estate in Michigan (I'm from Ohio) so I'm not 100% sure which office does what.  According to the county's website, the Equalization office is responsible for G.I.S. and mapping.  There is also a planning commission (no zoning though) but they seem to be mostly responsible for large scale developments.  I'm still trying to get this clarified.

The original lot was kind of 'L' shaped.  The long part of the L is basically a driveway that connects to the road.  When it was split, it became three parts, but only two parcels.  Imagine that the corner of the 'L' shape has a 1/4 acre parcel and the two lengths coming out of the corner were the other parcel.  Those two lengths are not connected because the corner parcel is separating them.  So now the driveway part of the parcel belongs to the landlocked shorter length, but there is no actual legal access from one length to the other.

It really doesn't make any sense to me.  Is it feasible that the previous owner split the property this way as a malicious effort against the foreclosing bank so that the parcel couldn't be sold?

Thanks again.

Rick Tripp · Answer

Depending on the physical relationship between the three lots, you may be able to remedy the situation with a lot line adjustment. Unlike an easement across someone else's property, you could be in control of the situation if there is sufficient space to create access across two of the lots you own onto the third lot you own. You'll have to make sure you don't create a setback problem for future building as you adjust the lot lines.

Jon Holdman · Answer

Is the "equalization office" your equivalent of a planning and zoning commission?  If not, figure out which office handles planning and get in touch with them.

"Illegal split" could also mean the subdivision was done without proper permissions.  But seems odd it would be recorded, in that case.

Its entirely possible to have a parcel that has no access.  But why would you want to own such a parcel.  You cannot get to it.  You would have to negotiate with the neighboring parcels to gain access.  And you would want to get that access legally recorded.  The neighbors have zero obligation to give you that access.  In fact, they have a strong incentive to deny such access since it makes it impossible for anyone else to use that piece of land.

Even if you get access, there may be other issues that make it unbuildable.