A basic rule of law is that real property is unique.
Thus, two lots, side by side, are not interchangeable; and if a property owner builds a house on the neighbor’s lot by mistake, he’s got a big problem.
First, he can’t force his neighbor to swap lots, or sell her lot with his house to him. Second, she can make him to tear down the house; and third, she can sue him for trespass, damaging her property (e.g., by removing trees), and emotional distress.
That’s the result of a Hawaii lawsuit where the owner of a construction company spent $300,000 building a house on a lot he didn’t own (photo below). Read story here (more details here).
How did this happen? The county isn’t at fault, because it issued the permits for his lot. Rather, in the dumbest, most careless way you can imagine. Instead of hiring a surveyor, the builder counted telephone poles. He counted correctly, but chose the wrong side of the right pole. (This definitely falls into the “are you kidding me?” category.) Wheeeee.
After the house was built, a neighbor contacted the lot owner, who was surprised to learn there’s a house on her lot. After the mistake was discovered, the builder tried to negotiate a land swap with her, but she apparently feels her lot has unique character, and isn’t willing to give it up. (She bought it for a meditation retreat.)
The builder then questioned the validity of her title to the lot, which she’d bought at a tax auction, but lost that argument in court. Then it got worse: The judge ruled the construction was illegal, ordered the house demolished, and allowed her to sue for damages.
I’m not familiar with Hawaiian laws, but it’s the result I would expect under Washington law, where I live. And probably most or all other states, because real estate law was established long ago and doesn’t vary much between jurisdictions.
This is why you hire a surveyor to identify boundaries before you do anything to property. If you build a fence over a property line, the neighbor can make you tear it down. In this case, trying to save a couple thousand dollars on a survey could end up costing this builder $1.4 million, plus demolition expenses, plus legal fees. What a stupid way to throw away money.
