Selling land that has neighbors' grandfathered gas lines crossing it but no easment

[greasemonkeyok]

I agree, Kye, you mentioned the farmer who has been cutting hay of your parcel is now " Very Anxious " to buy it....Now based on that that information if it were me....I would simply say nothing to him at all...I would write into the sales contract a simple sentence disclosing the existence of a gas pipeline and leave it at that...my understanding is all you are required to do is disclose a fact to all parties...If you get all hyper about it and make it a big deal he will get excited too...and the whole thing can get blown out of proportion...If he wants the land bad enough let him pay to correct anything....why should you discount your price up front...wait and see what he says...Keep in mind the gas company buries those gas lines very deep, especially in agricultural areas ...they know the land is being plowed etc....:2cents: Good Luck.

Bob has a good point from the standpoint of negotiating the price.

 

[greasemonkeyok]

Option E: Notify neighbor lady and request that her gas line be removed from your property, abandoned, or provide evidence of an easement allowing it to exist.

Downside of this approach is now you have three parties in the mix. That could go South in a hurry, and the cost of lawyers could make the deal less profitable. I could see neighbor lady wanting you to pay the cost of moving her line.

 

[RickB]

If you want a definitive answer as to what you are required to disclose, either ask a real estate lawyer, or maybe ask a realtor. The gas company, the folks on TBN, and your cousin Earl who sold some property with a gas line on it this one time, are not authoritative. IMO, of course.

Option E: Notify neighbor lady and request that her gas line be removed from your property, abandoned, or provide evidence of an easement allowing it to exist.

Downside of this approach is now you have three parties in the mix. That could go South in a hurry, and the cost of lawyers could make the deal less profitable. I could see neighbor lady wanting you to pay the cost of moving her line.

Real property law varies greatly from state to state. That's why joshua's answer is still the best.

 

[newbury]

Consult a lawyer. My ethics would have me saying something about the gas line (and put it in the contract) instead of waiting for a blowup at closing.

What would you want done if you were buying? What would YOU consider fair?

 

[dave1949]

Interesting situation. I'd say you should consult a lawyer before saying or doing anything, then proceed.

The neighbor lady apparently purchased her home unawares perhaps that the gas coming to her house is using your lot without an easement. I'm not sure her normal due diligence at purchase would include knowing that, and that may make a legal difference. I guess we can assume it was not disclosed to her, which it should have been most likely. She may have recourse from the seller or title insurance co. for the cost of relocating the gas line.

Like Newbury, unless a lawyer says otherwise, I would get the gas line issue disclosed early on, since you know one line has been snagged already and you know he intends to plow. You have to live with these folks, no point in starting a war. But like others said, I wouldn't involve myself in the resolution.

 

[Redbug]

I would disclose the lines since you have a moral obligation to do so. But why can't he put a disclaimer in the sell that it, "will be sold as is"?

 

[Creamer]

You have a legal obligation to disclose the existence of the gas lines in the sale. It needs to be in writing otherwise you do not have proof of your disclosure. You also have a good neighbor ethical responsibility to disclose the location to the best of your knowledge but there should be wording in the agreement that the location is "to the best of your knowledge". A title company will search and find if there is an easement or not. Either way they have been disclosed and the buyer is knowingly purchasing the property with knowledge of their existence and chooses to purchase the property. It becomes his issue or non-issue.

Raising a bunch of red flags is going to stir up a hornet's nest that probably is not going to matter. Either way, if you sell the land with full disclosure, you are out of it and it becomes their problem if it ever is.

 

[unbidden]

Too many options / things to go legally wrong. Hire a real-estate attourney and get things done properly so you don't have to worry about future lawsuits.

 

[KYErik]

Thanks for all of the advice guys. You are right- hiring a contractor to move the line seems like overkill and would get the lady next door all stirred up about getting the gas shut off and hooked back up and when she had a high bill she might think it was leaking.

I wouldn't want to take the gas line away from the neighbor B lady, she is not very well off and her late husband (who bought house B) was a friend of my original "B" neighbor and so she probably let him handle all the details. I really doubt there was a title search or any title insurance in that deal.

I'll mention the gas lines to the farmer when we first begin to talk about price and I'll make sure it is present in writing when I have a lawyer draw up the contract (and make any other notes the attorney recommends). It would just be an acre that the farmer would have to avoid ripping/chisel plowing. I really doubt that a disk would be an issue, but written disclosure will make it his responsibility. There is a 1 foot tall car sized mound and a car sized depression right next to the mound in the draw between the gas meter and house B, these correspond to where the water department hit some sandstone a few years ago when they put in a water line along side the road. I am guessing that the original installers hit sandstone in that spot and so they just placed the gas line shallow in that area (on top of the bedrock). The persons who did the repair probably mounded the dirt up on top of the shallow spot so it would be less likely to be snagged again.

If the farmer gets really concerned about the gas line, then I'll know that his plan is to subdivide the field and sell off lots

 

[orezok]

With the gas line being there for many years, the lady possibly has a prescriptive easement, a situation similar to adverse possession. She may have legal rights. Your attorney will advise.