First let me explain an incidental boundary change. A boundary change is a minor subdivision in which adjoining property owners agree to exchange portions of their land.
How do you do it? Hire an attorney who specializes in real estate. The attorney will:
- run a title search on each property to confirm ownership and verify lien status
- hire a surveyor to measure and map the parcels for exchange
- obtain required municipal or county approvals, if any, for the subdivision
- obtain releases from mortgage lenders, if any, for the parcels to be conveyed
- file deed(s), subdivision, and releases, if any
In the first case, we had issued title insurance in 2004 and were surprised to find a boundary change on record. Our previous customers, now the sellers, had negotiated the subdivision after they purchased the property. The new buyer now has to pay for an additiional chain search [probably $150] and the seller will have to pay for release prep and recording [probably $130]. I'm hoping they aren't in a big hurry because the neighbor and their mortgage lender might not move quickly. Fingers crossed.
In the second case, the new parcel was given a separate tax map number so we knew to search it. The buyer will still pay for an additional chain search [I have the invoice already. It's $100.] and the transaction is being delayed while we contact the neighbor, find their lender, and go through the logistics of getting a release. The seller will, of course, have to pay for release prep and recording.
Some lenders want an appraisal before they will issue a release. In both cases, the sellers may have to pay for appraisals and the transactions will be on hold while they are processed.
See how important it is to get good professional advice?
I still think it's strange to see two deals like this in one day but maybe someone out there needs incidental boundary change help and a little angel wanted to make sure I posted it. Who knows? ;)