Legal Question in Real Estate Law in Georgia
house sold w/out septic system
A builder sold lot A (house) & lot B, an adjacent vacant lot to 1st owner. Five years later 1st owner sells lot A to 2nd owner and shortly thereafter sells lot B to his real estate agent for $7,000, who ''plans to develop it''. Later the real estate agent decides not to develop and sells the lot for $20,000. The purchaser also has ''plans of developing it''. In the process of building on lot B the field lines for lot A were discovered. Turns out lot A doesn't perk and cannot support a septic system and lot B does, but lot B isn't big enough to support the septic systems for 2 houses. Per the builder, that is the reason lot B was deemed unbuildable because of the field lines for lot A being on that lot. The original owner of both lots states that he was not told by the builder that the field lines were on that lot. The plat from the Health Department shows where the field lines are, but doesn't show the property line between the 2 lots. The county has since revoked the building permit for Lot B and ''will not force, the owner of lot A to move her lines'', which she cannot anyway, because lot A does not perk. The owner of lot B now owns a lot, which he cannot build on and the owner of lot A cannot sell her houhouse. So, who is liable?
1 Answer from Attorneys
Re: house sold w/out septic system
If either the first owner or the real estate agent knew of the problem, the one who knowingly sold lot B and did not disclose the problem is liable. If there was collusion between them, both are liable.
If neither actually knew of the problem, the builder might (repeat might) have some liability for having created the problem. Also, a court might compel the second owner to purchase lot B, but at its actual value as determined by the court, which will not necessarily be its purchase price.
I have a suspicion that the first owner did have notice of the problem, since he would probably have asked the builder why lots A and B were sold as a unit.
You should consult an attorney to determine your rights.
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