BOUNDARY LINES: PLEASE SAY NOTHING

February 15th, 2012 at 6:49 pm

I have spent a number of hours the past few days reviewing our open litigation with our attorneys. As we went through that process, one thing became abundantly clear: An inordinate number of our lawsuits arise from boundary line disputes. Those cases all involve some alleged statement by our agent regarding the boundaries of the subject property, all of which turned out to be false. These claims, of course, can be very expensive, depending on the property involved. In one of our cases, the plaintiffs allege that we told them a finished hillside, which provides the property with significant privacy, was theirs. In truth, the hill belongs to the neighbor and, given its size, the plaintiffs claim it is worth over 6 figures.

So, what does this mean to you? It means that you should NEVER make a representation regarding property lines if at all possible. As you know, fences and walls, which often appear to be on the boundaries, are often placed incorrectly. Further, when the seller tells you where the boundary lines are, they are often incorrect. So, say nothing. You are not a surveyor and making a representation can often get you in trouble. If you have to address the issue at all, make sure you provide a source. Then recommend that the buyer confirm the source’s statement with their surveyor. For example, if you can’t stay on the sidelines totally, the most you should say is something like the following: “The seller says the brick wall is on the boundary line but I have not confirmed it. If you want to be sure, you should have the property surveyed.” That way, the representation is the seller’s and you have told the buyer that you haven’t confirm what they said. You have also told the buyer what they can do to make sure the seller’s statement is correct. In other words, you have disclosed what you know and given the right advice, thereby protecting yourself from a misrepresentation claim. But remember, the preferred thing is to say nothing at all about boundary lines. Those statements can very easily come back to haunt you.

As always, please contact us with any questions you may have

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