How to sub divide vacant land? steps and suggestions

Question

The short story to a very long and drawn out neighborly dispute:

I need to sub-divide a parcel of land. What is the most cost effective way to do this in Washington State?

Background: I have a rental property in the South Sound/ Tacoma area of Washington State. It has appreciated wonderfully and I have amazing tenants in there. There is an alleyway that has one entrance and is the only access to the 2 car detached garage in the rear of the lot. 4 years after purchasing the property and more than 30 years of the alleyway being used for access to the back garages (my house and 2 other houses) the owner of the vacant lot behind us demands that we buy the gravel alley way because it is a part of their parcel that they are trying to sell. They have had multiple offers fall through due to the undocumented easement of the gravel alleyway.  If we don't buy it, it gets fenced off and we no longer have access to parking (besides street parking).

I at first refused to pay anything due to us having a prescriptive easement to the property. However the only way to enforce this and ensure our access continues is to take them to court, incur legal fees, and hopefully get a better lawyer than the parcel owners. I want to settle this with them as neighbors not as somebody standing behind a lawyer who is only as good as I pay them to be. So we are prepared to buy the portion of the parcel required for us to access our alleyway and now have to figure out the best, most cost effective way to create 2 parcels out of one.

I appreciate any help, guidance, or suggestions as this situation has gone on for so long that I have started to let my frustrations dictate my actions

-Kate

Jay Hinrichs · Answer

@Guy Gimenez  out this way you get an ALTA policy which lenders require and it ensures that your not landlocked.

and other encroachments.

IE does your property have access to a public right of way...  this issue as you can see has to do with a garage in the back of the property but the property clearly fronts a public right of way and that is all title insurance is going to cover.

out our way you would get a preliminary title report and your map in said report you get that a few days after you open escrow its incumbent on you the buyer and your real estate agent to read the report and look at the map and then if there is a question you address it during your due diligence period.

this one would easily have been caught if someone had just looked at the map when they bought it.. you would have a big red arrow pointing to your lot.. you would see your lot lines you would see the driveway behind you was not your property you would also see its not public right of way but a piece of private ground.. then as a broker or the buyer you would question that.. and if needed then order a survey or talk to the land owner.

I have a big landlock case going right now were Chicago title missed that my property was land locked.. its a 500 to 750k property.. that if I can't get access to the public right away they are going to have to stroke me a check.

if it is landlocked then in the preliminary title report you get and out here they make you approve.. there would be an exception that your parcel does not appear to have access to a public right a way and that then starts another process.

even though my property is 3 lots that had 3 homes on them and had been using the same driveway to access the state highway since 1945.

but the state of Oregon owns a strip of land between my property and the highway that is slated for a pedestrian trail.. even though this property is in the boonies 25 miles out of town.. the trail goes for about 40 miles.

the state is not obligated to give us any kind of prescriptive right and they declined.. so the only way to get on the property is through a neighbor and of course once the neighbor knows they have you by the you know what.. they want a bunch of money.. so its up to the title company to figure it out .. buy my easement or pay me off.

If there was an exception in the title policy I would be sitting there like this lady... SOL.  And on top of that I demo'd the 3 houses before we figured out we were landlocked I went to get a construction loan and a different title co. said hey your landlocked.. :)

Jay Hinrichs · Answer

Few steps to take

1 go into planning department and ask them if its OK to do what you want to do.

2. easement rights are not as clear cut as you probably think just because of use.

3. look at your title policy when you bought it.. there could be a title claim and you turn it over to your insurer to defend.

try to work it out with out getting adversarial it will help you in the long run.

Jim Cummings · Answer

@Kate Homme. I would expect the fact you are a real Estate Agent will NOT help your case in any actions, as you are a Quote "PROFESSIONAL" Unquote in the field!

Kate Homme · Answer

I did not get a survey as the property is in a historic district of the town so the platt map was included in the paperwork. I never thought I never thought the gravel alleyway was my property- I thought it was the city's as it appeared to be a continuation of 7th ave and even showed up on google maps at the time and the Real estate agent verbally confirmed it. There was even a city sign saying 2 hour parking only!

I guess my next thread question will be how to finance this unexpected property expansion....:/

Thank you for all of your help!

Guy Gimenez · Answer

@Jay Hinrichs

Look at the positive side Jay...whatever the problems...you can afford them and never miss a good meal.

Guy Gimenez · Answer

@Jay Hinrichs

Yep, done differently throughout the U.S.  Not sure how title insurance works in other states but If you want boundary coverage here in Texas, you gotta have a survey. Perhaps title companies in other states will provide said coverage without a survey or perhaps they won't provide it at all...I have no idea. I know some investors will clearly accept the risk and not get a survey but every once in a while this very issue arises to bite them in the back side and a survey may have been advisable. Perhaps in WA it doesn't matter....right up to the time it does.

Jay Hinrichs · Answer

@Guy Gimenez  its evident that she did not.. and its very very rare to get a survey of a residential property that is lot and block description on the west coast.. unlike what you do in Texas were you survey every single property that trades.. even if its lot and block... Texas is quite unique in this fact across the country.. only place I have seen it done.

We survey in Charleston SC but that's because the city was platted in the 1700 and 1800 s and its well known that there are encroachments all over the place..  out on the west coast we simply don't do it..

I think we have had this conversation before.. if everyone who transferred a property ordered a survey.. there is not enough surveyors by a long shot to do the work you would have import a thousand survey companies.. :)

Guy Gimenez · Answer

Did you get a survey of the property?

Wayne Brooks · Answer

Yep, your local planning and zoning dept (whatever it is called there) would be the place to start, to see if it is possible.  If not, perhaps you three neighbors could buy an easement from the owner.

Jay Hinrichs · Answer

it might if you have it in writing from the realtor that the this access was included in your parcel.. however the e and o insurance will just look at the plat map that you should have looked at.. and you being a realtor its probably pretty evident that this was not part of the parcel you bought..  IE reasonable due diligence.

I know in some states like Texas they survey every single property every time they transfer ownership.. that's just not customary out our way.. we do it out east because this is common to have all sorts of encroachments etc.

I can't fault you for not surveying the property during your escrow period because as I state is extremely rare in a urban environment in our area to do that.. so the realtor is not going to recommend it when I bet they have rarely if ever done it in the past..

Out this way you always get a copy of your preliminary title report and attached to that is the legal description and the copy of the plat map.. it should have been pretty easy to determine that your lot lines did not include the this driveway or alley way.

But you can always make a claim and see where it goes.. most west coast board of realtor purchase and sale agreements have mandatory mediation clauses in them.. you must do that first.. and that will cost you 2 to 4 k to go to that plus you would have to travel there.

How to sub divide vacant land? steps and suggestions

Most Popular Reply