Legal Question in Real Estate Law in Nevada

easement

Mr. Jones�s projects include some of the largest residential subdivisions within the City. While Mr. Jones� business was developing the infrastructure of its newest and largest subdivision, the City discovered an easement for a city utility line on the subdivision that did not belong to Mr. Jones. The owner of the property where the utility easement is located also discovered the error. The City is threatening to close down the subdivision and Mr. Jones�s business, and is threatening to sue Mr. Jones for fraud against a municipality. The adjacent property owner is also threatening to sue the client for damages to his property and for trespassing. The adjacent property owner is a citizen of Switzerland.

4) Compare the proposed resolution of the civil aspects of the situation with the criminal acts resolution.


Asked on 12/28/08, 9:53 pm

1 Answer from Attorneys

James Smith James E. Smith Ltd.

Re: easement

If the developer accidentally negotiated an easement with the City on property that was not his (under the guise he owned it) as he NEEDED the City create a utility easement on the subject neighboring property to EXTEND it to his new development, then he's perfectly within his right to have done so if the title records showed at the time that he owned it. Apparently it was later discovered he did not.

Since it was later discovered he did not own it, then the issue becomes: Did the City did provide proper notification of this easement to the property owner? If not, then the City needs to start the process over again & do it properly in accordance with federal law, the state statutes, & city codes. The City may have to start the whole process over again.

It sounds like what happened is Mr. Jones (in reality) wanted to thwart the elongated process of waiting for the city to give notice to the adjacent property owner re: the needed easement for utilty line. If the property owner objected and fought the City over it, it would take the City longer to obtain the easement because the City would then have to condemn part of the adjacent property owner's property to then utilize the condemned portion it for a utility easement. They can't just "extract it" from an unwilling property owner who does not need or want the easement. They have to go through the proper processes. Mr. Jones wasn't too keen about all of that it appears.

The public may be more well served by having the developer pay bigger bucks to bring the utilty in to serve his new development from a different direction...as he may have to then extend the line further and this ultimately may benefit the public more and cost the developer more. Additionally, the developer may have to upgrade the utility line all along the way to provide enough power/etc. to serve the new large development (a very costly process!).

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Answered on 12/29/08, 9:26 am


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