I found a great home built ~early 2000's that I want to put an offer on but later to find out the existing pool patio encroaches an existing utility line easement quite a bit. Am I taking a big risk here?

How wide is the easement, how much is the encroachment, and what type of easement?

Where is it located?

Runs parallel to the yard and the pool patio covers about 7-10 ft over it. It's water and phone but owners are not sure if there are existing lines running through it.

Houston - Cypress neighborhood.

CheladaAg said:

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Runs parallel to the yard and the pool patio covers about 7-10 ft over it.

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Is it 10 foot easement? Electrical?

The current or previous owners might have gotten permission from the county or the utility company.

If you haven't already, I'd try contacting Harris County or the utility company.

Of course, this could cause more problems for you if they aren't yet aware...

Worst case scenario, if you put an offer in, you can always back out after you've had inspections done or request a survey to be done, if something comes back funky.

A real estate agent should be able to help with this as well.

Sorry, I'm no expert or anything, but I love real estate and after the fiasco of a sale we had to go thru last year in Hawaii, I've seen it all.

It's 7 ft in this instance. Water, phone and there is a 3rd utility but not sure what.

Can you have 811 mark them? Perhaps they're not actually beneath the slab.

If there is an encroachment that was allowed, it should be filed in the property records, but chances are it isn't. Title companies don't like dealing with them.

CheladaAg said:

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Runs parallel to the yard and the pool patio covers about 7-10 ft over it. It's water and phone but owners are not sure if there are existing lines running through it.

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I do survey work for municipal infrastructure replacement. In my experience, the comms will likely be abandoned in place eventually, and replaced with other tech (wireless or trenchlessly installed new comms).

Eventually a water line will reach the end of its service life and have to be replaced. We do a mix of "back in the same trench" and "relocate to more convenient place" designs. Is there an adjacent area that's more convenient to trench in a new water line? Like an alley ROW?

By the looks of it, there is lots of room in the backyard to adjust the trench line. I may just get in touch of 811 to locate what's there.

Are you under contract? Just write a letter to the title company objecting to the encroachment. Google "title objection letter." Let them and the seller figure out how to deal with it.

A patio encroachment is no big deal anyway.

redaszag99 said:

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It doesn't matter what utility is there, don't call 811

The easement holders have a legal claim whatever their easement entitles them to.

The way you negotiate this deal is to assume any encroachment is worth $

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But easement owners are also opposed to spending money saw cutting concrete and pissing off homeowners when they can just go around cheaper/easier.

Being informed as to what is there and exactly where it is allows you to modulate your internal risk tolerance against what you can negotiate $ wise with the seller.

The title company is only going to insulate itself from financial risk. They aren't going to solve any utility conflicts.

You never know. But the objection letter is for both the title company and seller. If they cannot cure the objection, buyer may terminate and receive the earnest money back.

Buy it at a price that you'd be ok with the utility coming in and placing new lines … disrupting your yard.

I don't think they have any obligation to return it to previous condition. I think that's on you. Maybe there is way to return it to functionality more strategically. Would make sure you are allowed to redevelop if they come in to access easement.

Could you live with smaller patio?

It may never be accessed. But, would offer buy it as if it was going to be accessed 1 or 2 times over thirty years. Market price less replacement cost as a starter.

Interestingly, I'm currently working on an objection letter on a commercial transaction with 3 different lots and multiple easements, right of way filings, access agreements, etc. In your situation, file an objection prior to the expiration of the objection period stated in the contract. This will buy you some time and cause the Seller and Title Company to have to make some decisions. You will ultimately need to make a decision on if the risk is worth it to you. Advice from a poster to ask what your real estate agent says, in my opinion, is very poor advice. I have nothing against real estate agents/brokers (I am also a broker), but they cannot give legal advice unless they are also an attorney. Have an attorney draft an objection letter and then be prepared to negotiate with the seller. Personally, I wouldn't walk away from the deal if this is the only issue.

If the easement was dedicated as a public utility easement, (assuming it is since multiple utilities are located in it) you will need a consent to encroachment from any/all utilities serving your area. It also doesn't matter what utilities are currently located within your property, as all utilities have a right to be located within said easement. Just because they aren't there right now, doesn't mean they won't utilize that area for planned growth, relocation, expansion, etc.

As stated above, unless consent is granted, you are taking a risk. They could come through tomorrow or possibly never.

Typically, there are costs associated with CE's, so you can research each utility and see what the application and other fees would run you. You would need a survey to depict the area. It's only time and money yada, yada, yada

Ask seller to produce consent to encroach. If they don't have, tack that cost on to your "rework" estimate once the utility easement is accessed as deducts from market price.

Ask to see the variance they will most certainly have to pay for. Those can be very expensive.

Ate you in city limits?
If not, Harris County doesn't deal with utilities. Youll have to contact your MUD or Centerpoint.

And as others said, put the sellers on the spot for documentation if they built the patio.