Legal Question in Real Estate Law in Texas

house built on wrong lot

We purchased an undeveloped lot. The location we looked at was based on the selling realtor's sign. We had a local builder construct a small weekend house on the lot. Now the same realtor is selling the lots next door. It turns out the lot we looked at is not the lot that was for sale, the one beside it was. So we have a house built on someone else's lot with survey that marked that lot as the one we purchased. The owner is getting a lawyer to sort it out. Who is responsible and libel? Can we lose our house?


Asked on 8/17/08, 9:27 pm

1 Answer from Attorneys
Cheryl Rivera Smith The Smith Law Firm

Re: house built on wrong lot

Did you get title insurance? If so, then you have a title claim and the title company will provide legal counsel to help you. I've dealt with this situation a couple of times. The surveyor may have some liability, the realtor may have some liability, and possibly the seller has some liability. There is no way of knowing without looking at all of the documents. The way we worked it out was to trade lots with the owner of the lot next door. Another option would be to pay market value for the lot that was built on, if they agree, and re-sell the one you already bought. As far as losing the house...you could, but I would argue "unjust enrichment" for the value of the house and ask for reimbursement for that value.

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Answered on 8/19/08, 9:48 am


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