Legal Question in Real Estate Law in California

Re: who owns it ?

This is something a smart investor would have investigated prior to purchasing! Hire a surveyor to plot the lot lines. It may be that someone else has encroached on the property you purchased, in which case you need to hire an attorney to remedy the situation. Did you run a title search to see if there was an easement given to the owner of the other property?

Re: who owns it ?

The first thing I would do is run a title search on all three lots to determine any history of litigation, whether they are legal, approved separate lots (just because they have separate parcel numbers doesn't mean they are legal), when and by whom they were subdivided originally, and other pertinent facts that might help you understand the history. Such a search is almost certain to shed very important light on how this mess was created and what prior owners have tried to do.

Next, I would check the permit history on the house. Who got the building permit, and when? What did the permit application say? Was it inspected and an occupancy permit issued? To whom? This will be useful information.

The results of these two steps should give clues for further investigation as to who is at fault and what legal or administrative remedies you may have.

California has a good-faith improver law that protects people who innocently build their house on someone else's land. This may cut against your claim. See Code of Civil Procedure sections 871.1 to 871.7. A review of case law (appellate decisions) under these code sections would be helpful in assessing your rights.

Finally, before deciding what action to take, I would investigate the circumstances of the auction to see whether it was fairly and regularly conducted by properly licensed folks and that necessary disclosures were made. I would be pleased to give you a further analysis and proposal if you contact me directly.