Didn't See This One Coming
I recently closed on a FNMA property. It had been in foreclosure and I picked it up (as is) for at least 50K under market value.
It's a rural, mountain property with septic and a well.
Had to move quickly to get it...but...great deal, right?
Got a call from the owner of the adjoining lot who claims that the well for my property is actually located on his property. He claims he has a letter of agreement (unrecorded) from the previous owner of my property who was also the owner of the other lot at one time. He claims that letter acknowledges that, should he ever sell it, the well could be capped off and routed to the other property.
I have the original well permit which locates the well on my lot, not his. But it looks like it is very close to the property line...if I knew where that was for sure. I don't.
Being rural and mountainous and platted almost 40 years ago, boundary markers are invisible.
I've ordered a boundary survey to find our exact boundary lines.
Water rights are a tricky issue in this area. If he's right about the well, I may have a difficult time getting my own well drilled. I may have to buy his lot to salvage this.
There's a very funny smell about this whole thing but I can't figure out a scam angle that makes any sense. Giving him the benefit of the doubt, either he's mistaken and possibly the victim of a scam himself, or I'm screwed. The survey will tell.
Someone mentioned that, since the well had been in use by the previous owner of my property for almost 5 years, that there may be an equitable use consideration here that may allow me continued use of the well regardless of location.
Does anyone have a similar experience or can provide any suggestions about the best way for me to proceed here?
The lack of recording of the alleged agreement probably makes it unenforceable. I'd point out to the prior owner that his failure to disclose such an agreement, if it were genuine would constitute fraud and make him liable for the costs of correction of the resulting defect. Then, after he understands the consequences of his answer I'd ask him if the document is genuine. Without a recorded copy the testimony of both parties is probably essential to enforcing this agreement.
If, on the other hand the well is on the other property you probably need to think about how you will deal with the issue when you want to sell.