Grave Misgivings

Lattington, NY

Here on the tony Gold Coast of Long Island, a successful entrepreneur bought 2.5 acres abutting an exclusive golf course for construction of his new home. When the land was purchased, an Owner’s Title Insurance Policy was issued, including coverage for the accuracy of a survey showing the parcel to be free of encroachments.

Later, the survey was revised to show location of a new home, then under construction, and a Lenders Title Insurance Policy was also issued for $1.7 million, again including coverage for the accuracy of the survey showing no encroachments. Still later, the survey was again revised to show a new swimming pool and pool house. But this time, to his dismay, the surveyor discovered that the eighteenth tee of the golf course encroached onto the rear of the insured property and, worse, a 10 to 12 foot-wide maintenance road used by the golf course also encroached.

The owner made a claim on their title policy. The eighteenth tee turned out to be a minor problem, it didn’t bother the owner much, but the maintenance road meandered onto the property for the entire length of its rear boundary. Our first thought was to move the road, but the way was blocked by the Frost family cemetery, a cluster of gravesites found in woods between the insured property and a fairway. The cemetery has been here since Revolutionary times, and we had misgivings about even trying to relocate the remains.

The title insurance company hired an attorney who sued both the golf course and the surveyor. It was apparent the road had been used for decades, so the golf course may have acquired a legal right to continue to use it, but the attorney ingeniously argued that movement of equipment over the road violated zoning laws and constituted a nuisance. This broke the impasse and persuaded the golf course to give up use of the road.

The golf course collected $50,000.00 from the surveyor’s errors and omissions insurance carrier, and the insured homeowner was reimbursed $40,000.00 for the encroachment of the eighteenth tee.

MORAL

In one form or another, survey coverage is available in most localities. It can be a great benefit to owners and lenders, who otherwise might have to face dicey lawsuits, unhappy neighbors, and expensive legal bills – on their own. NOTE: Survey coverage is included in the Enhanced Owners Policy without the necessity (or expense) of a survey being done.