Strange Real Estate Deception

[MABOAT]

What is the name of your state? SC

We purchased a lakefront home w/dock in a brand new HOA. At time of purchase Developer and Builder made it clear we would have to share our dock. All of the lakefront lots had to share their dock with the next door neighbor.

Two years later (now) the house next to us sells and the owners proceed to take the 2nd slip in the dock. They immediately put it in a rental program and advertise our dock. We start questioning why we have to share our dock when the covenants strictly say our docks are not "common" property and we (not our neighbors) have full responsibility for "all" costs, liability associated with the dock.

The closing attorney confirms that we are the only owners of our dock and no one has the authority (unless we signed an agreement) to use it. (note - there is no dock in our neighbor's deed and we did not sign any agreement)

Deeds are online so we did a little reading. Come to find out the builder , 2+/- years prior to selling our neighbors the lot next door, leased a slip in the community dock that will stay with the neighbor's deed. (note-we just found out about the lease and the builder still told us we had to share)

Ok, so the neighbors state they were sold our dock, it's in the MLS sheet, it was in their contract and when they went to confront the builder (last week) he just stated, "it was the intent" that we share the dock. (note-I'm certain there will be more to that story in the near future)

Now the bigger kicker, the authority that govern's the dock permitting system on our lake. Absolutely does not allow an owner of a private dock to ... share or lease with any other person. If they catch you leasing out your dock they will revoke the permit. Now you own a Dock on dry land. Developer and builders were given clear instruction about the dock permitting system. (note-thats why we have such a "big" community dock coming in - not installed yet....We were told we needed a big dock in case friends came by for the day and needed a short term parking spot)

Ok, so now we have a Clearer Understanding about our ownership of the dock, the lake policies etc... BUT thats not the end of this story....

Just prior to our questioning the reason why we had to share our dock the developer sold an interior lot to the builder. In the March 2008 DEED that the Developer conveyed to the Builder the description reads:

The lot includes the respective docks or slips appurtenant to the Lots
as described in the Covenants. Docks are located on Lots..1, 3 and 5
which are a part of the property. Boatslips are appurtenant to
Lots 2,4,6,7,8, and 9 as described in the Covenants and are a part of
those lots.
NOW in the lakefront lots...Lot 1 is owned by the Developer and Lot 5 is owned by the Builder and I own lot 3. All the other lakefront lots are not listed, a different builder bought, built, and sold those lots.

Ok, final info. The Attorney that wrote the covenants, has represented the developer on multi, multi transactions and handled our 1/2 of the closing did not handle this last closing. Interestingly enough they went to a different attorney to write this deed. However I did ask our closing attorney about the wording and he simply said he did not know why it was worded that way but it did not affect me.

So, Here is the final puzzle? Even though the attorney told me I do not have a problem (he has handled dozens of real estate transactions for the developer) it just appears that at some point the owner of the interior lot will read that description and believe he has a right to use my dock.

Would Love To Hear Some Ideas on how to handle this!!!

 

[JETX]

Would Love To Hear Some Ideas on how to handle this!!!

Your issue is far too complex for an online forum, especially since we can't actually review the specifics. Take your issue to a local attorney who can review ALL the documents and facts. The few hundred it will cost is worth it.

 

[justalayman]

a deed can only convey what the grantor has legal title to. They can place whatever they want in a deed but that does not mean it conveys what it says.If it is a warranty deed, it makes it an improper deed and a real mess for those involved but it still cannot convey property the grantor has no interest in.

Deeds are online so we did a little reading. Come to find out the builder , 2+/- years prior to selling our neighbors the lot next door, leased a slip in the community dock that will stay with the neighbor's deed. (note-we just found out about the lease and the builder still told us we had to share)

what does this have to do with your dock?

Ok, so the neighbors state they were sold our dock, it's in the MLS sheet, it was in their contract and when they went to confront the builder (last week) he just stated, "it was the intent" that we share the dock. (note-I'm certain there will be more to that story in the near future)

Tell them "oh well, I feel sorry for you and if you don;t like it, you can sue the person that sold you the bill of goods that did not include our dock" what is in the MLS lisitng or their contract has no effect on your property. The realtor cannot sell your dock, if it is in fact, only your dock.


this is a bit complex for an internet forum and an attorney needs to read the specific germane documnents.

 

[MABOAT]

I know theres a lot of info in this forum. I have been to the attorney that did the Real Estate Closing for us and have been told in writing that I own the dock, there is no easement or authority for anyone else to use it. My legal rights are accounted for.

I do understand that you can not convey what you do not own.

BUT That last deed that the Developer and Builder closed on.. that includes a description of my dock as if it were a part of their property... is that going to one day come back and haunt me if I don't make them correct that description???

 

[justalayman]

it may but you would have to refute the claim if/when it becomes a problem.

what you have copied is only part of a larger document and without the entire document to see it in it is impossible to figure out what it actually states and means


from what I can read, it appears that all it may be doing is noting that you (in lot 3) do have a dock.

 

[MABOAT]

I had the attorney that wrote the covenants & restrictions explain the sections pertaining to boat docks and boat slips etc... I have been given a clear legal understanding of the CC&R's from the attorney that wrote them.

The problem I have a hard time wrapping my brain around is....

In the CC&R's it names all 5 lakefront docks in the description and it states that they are not "Common Property" that each of the lot owners own the lakefront in the recorded plat , have the right to build a dock, a building and a pathway and that each lake front lot owner is responsible for their dock - not the association. It also clearly states all of the other lot owners only own the land under their house.

In this deed it only names three lakefront properties, the developers, the builder's and mine. The other two lakefront properties are not mentioned in this deed description at all. "IF" it were just a repeat of the wording in the CC&R's I would not be concerned.

It just reads to me a little mis-leading as if that lot has the right to use lot those three lakefront lots personal private docks.

 

[justalayman]

I don;t see that in what you posted but then again, the entire document is not posted and the entire document is critical in determining what any portion of that document means.

 

[MABOAT]

It would be too difficult to write down all 31 pages of the CC&R's. The attorney that wrote them has confirmed that the only easement on my property is to allow the Assoc the right to come on to the property to maintain the grounds. The whole idea of the subdivision is that the association takes care of the outside maintenance.

The recorded plat states "Lots (it names the 5 lakefront lots) include lakefront property as shown, However these lots are subject to easements as set forth in the covenants.

Lots (names all of the other lots in subdivision) include only the property where the homesite is located as shown. These are all interior lots.

The STRANGE thing in the latest recorded deed is this.... why did the attorney write up a deed that EVEN has a paragraph about the docks? All of the other recorded deeds do not have this paragraph written in the deed. Most of the interior lots (not the one in the deed I'm writing about) has a separate recorded boat slip lease in the community dock

Why would this paragraph about boat docks only name a portion of the 5 lakefront lots? Finally of the three lots named the Developer and Builder own two of them - I'm the third lot named. (another trivial fact - the 2nd builder (the one that sold the other two lots) and developer do not have a great relationship).

Does that paragraph - as I posted in the beginning - not sound like my Dock is a part of the deed going to that lot?

 

[justalayman]

yes it does but if they do not hold title in what they are attempting to transfer, it cannot transfer that interest as there is none.

have you asked either the grantee, grantor, or attorney that wrote the deed?

maybe a simple mistake and they will shower you with gratitude for catching this before it causes them a lot of legal problems later on. Who knows? Ah, they know.

 

[MABOAT]

Yesterday, I had a discussion with the developer. He does not want me to communicate with the other home owners in reference to the dock ownership. The community dock install has been halted by the Lake Authority pending an informative letter the developer must mail out. Apparently some private home/dock owners (at closing) have signed lease agreements (under the allusion that it is required) which is not allowed by the dock permit lake authority.

The developer stated that "he" would have to take my dock and replace it with a smaller one and I told him he had no authority to my dock since I own it. He then told me the Lake Auth would take the dock and I told him I doubt it since I talked to them and I promised to comply with their rules. He said he wanted to stop all rumors and I suggested he talk to my neighbors who believe they were sold "my" dock at closing or another builder that has a private dock listed in his real estate ad (both these homes are interior lots). He said that had nothing to do with him.

I then pointed out the deed. He said he needed to see it. Then he said "oh, the other lots were purchased differently." I said no they were not. (I have already gone back and looked at every lot purchase). He backed off and agreed. He said he would look into it right away. We will see what happens.

 

[HuAi]

Does your HOA allow fences? Blocking physical access to the dock will assert your position pretty clearly.

 

[MABOAT]

Fences are not allowed.

NEW QUESTION!!!

The developer told me not to talk to any other neighbor about the docks that he was responsible to do that. (remember I have already told him about the builder putting a private dock in his advertisement for an interior lot & my neighbors stated they were sold 1/2 my dock by the other builder) He stated that he was required by Duke (lake permit authority) to send every owner a letter. We got our certified letter and it states:

Attention All Homeowners at Subdivision Bay:

It has been brought to my attention that we have some conflict with the dock situation in Serenity Bay. As the developer, Subdivision Bay, LLC needs to advise everyone to abide by all covenants and restrictions including ones for the docks. The property is subject to the declaration of CC&R, conditions and easements dated.... and filed...deed book### Page##. This document can be found on the County web site under ROD. We are continually being updated on the community lease area for all interior lots. We hope that our permit will be here soon. We have done everything in our power to hurry the process. The docks are built and ready to go in the water as soon as we receive permit approval. Please continue to be patient because this process is a complicated and out of our control. As soon as we receive the permit it will solve alot of questions and problems.

The Covenants are 31 pages and and they mainly talk about the community boat dock. They also make note that the lake front lot owners may contruct a dock & pathway. The plat which has several important easements listed is not viewable on line. There is a small paragraph that states you must follow the guidelines of Duke etc...

I have been told by the developer its not my job to tell the neighbors about the docks. However this letter seems mis-leading. The problem with the docks is that Duke has found out that neighbors, who own "private" docks, were told they had to lease them to the lot next door - thats why the community dock has been halted. The letter switches track quickly and really talks about the community dock.

I have been duped for the last 2+ years with misguided beliefs. Now I know my rights but I am concerned I have neighbors that don't actually know theirs. So What Do I Do?

 

[FarmerJ]

So are you going to continue to talk to the nieghbors about this mess any way ? Have any of them consulted with attys ? For now rely on your attorneys advice since it appears this is not going to go away with out a fight or alot of hard feelings.

 

[MABOAT]

It sounds easy but it really isn't. I don't really know the other neighbors. I just now put together a contact list for communication. I have a way to talk to everyone now it's just a matter of the proper way to go about it.

Both builders and the developer have moved into the subdivision. They had 1st contact with everyone that purchased. AND they are likable people.

How would you approach someone that does not know you and explain that you should talk to an attorney because the likable guy that sold you your house probably deceived you in order to sell that house for more $.

 

[HuAi]

don't make their problem your problem. take care of your dock and let them take care of their own.