Legal Question in Real Estate Law in California

Land Subdivision Creates Economic Loss to Adjacent Property

We own one of 3 undeveloped lots which have no water pressure due to their elevation. The water dept will allow up to 3 lots to solve this using privately installed pumps. If there are more than 3 lots, the water dept will require a $400,000 pressurized water system. Because of the POTENTIAL for the other 2 lots to be subdivided, the water dept will only provide us water if we agree to a lien on our lot in the amount of 50% of this cost. Do we have a case against the adjacent landowner because their ability to subdivide is costing us a $200,000. We would like to force a deed restriction eliminating subdivision potential and/or place a lien on their property forcing them to pay for all costs associated with subdivision of their property.


Asked on 1/28/02, 9:15 pm

3 Answers from Attorneys

Victor Hobbs Victor E. Hobbs

Re: Land Subdivision Creates Economic Loss to Adjacent Property

I've read both prior answers. And only intend to suppliment them. Presumably each lot owner is facing the same problem with the water company. And it would be a situtation in which the lot owners working together using the previously suggested CC&R approach could cooperate and minimuze the economic costs. However, the water company is going to have to be involved. My concern would be that the water company could change the criteria for better or worse as a management decision. You need to get the water company's position in writing if you have not done so. Changes in technology, water availability, future profit and losses, and management could cause the water company to change their decision. So any attempt to solve the problem must involve the water company.

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Answered on 1/29/02, 9:47 am
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Land Subdivision Creates Economic Loss to Adjacent Property

This is a difficult and unusual question. Maybe someone out there knows the answer; I don't pretend to know.

However, if you don't get a knowledgeable-sounding answer from another LawGuru attorney, I have a suggestion. You could file a suit in equity seeking a permanent injunction against splitting the other lots due to the prospective economic harm you would sustain. Just before you file, ask the other owners to negotiate reciprocal CC&Rs to maximize the total combined value of all the parcels. It might take a cash adjustment to equalize the gain/loss. This would sort of be like buying the development rights, or putting the development rights in a pool to be shared by all three owners. There are other deals that could be negotiated, but the threat of a lawsuit or the actual filing of a lawsuit may help negotiations along.

There is no certainty a court would grant you an injunction or any other form of relief, but it's possible, especially if there were some alternative that shared the benefits of development equally among the three lot owners.

You would need to consult and retain a local attorney with real estate experience to go over the details including the water supplier's position very carefully before writing up and filing such a suit.

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Answered on 1/28/02, 11:19 pm
Ken Koenen Koenen & Tokunaga, P.C.

Re: Land Subdivision Creates Economic Loss to Adjacent Property

It sounds like you want to penalize someone who has a piece of land that is subdividable, and make them pay all of the costs of providing water.

While it would make sense that they should pay their fair share, they probably shouldn't pay for yours.

This needs more investigation and analysis before giving an off the cuff answer. You need to contact a RE attorney in your area.

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Answered on 1/29/02, 1:57 am


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