It’s October — the perfect time for another real estate horror story. In this tale, a developer builds a beautiful home and gets ready to sell it, only to discover they no longer own the land it sits on. The nightmare? It was all caused by a simple paperwork mix-up.
A Neighborhood Built with Care — Until a Costly Mistake
This story came to us from a developer who had carefully planned and built a lovely neighborhood. The common areas were designed for recreation, walking paths, and a strong sense of community. Like many projects, the layout changed a bit along the way. A few extra lots were added, and new plats were recorded.
All seemed well — until the end of the project when it came time to sell one of the final homes, sitting on what we’ll call Lot 100. That’s when the developer hit a terrifying wall: they no longer owned Lot 100.
The Plot Twist: Lot 100 Was Given Away
What happened? In the process of winding down the development, the developer had conveyed the neighborhood’s common areas to the Homeowners Association (HOA). The goal was for the HOA to begin maintaining the spaces as the developer finished up.
The problem? They used the wrong plat when deeding the property to the HOA. That plat mistakenly included Lot 100 as part of the common area — meaning the developer had unknowingly given the land to the HOA before selling the home built on it.
The Home Was Built… on HOA Property
This created an awkward situation. The house was built, the buyer was ready, but the land legally belonged to the HOA — not the developer. Now, the developer had to go to the HOA board and ask for the land back.
A Delicate Fix with a Dash of Diplomacy
Luckily, the HOA board understood that the transfer was a mistake. While the legal fix was clear, it still required diplomacy. The developer helped smooth the process by offering some support for the HOA, and the board agreed to deed the property back.
Only after the correction could the sale go through to the buyer who had paid for the home.
The Lesson: Plat Accuracy Is Everything
When re-subdividing land or changing property lines, it’s not enough to just record a new plat. You must also double-check that all conveyances are done using the correct documents. A simple oversight in paperwork can cause serious legal headaches — especially when you build and sell something you technically don’t own.
Need Help With Real Estate Conveyances?
If you’re a developer, buyer, or property owner navigating plats, HOAs, and legal descriptions, get the right legal guidance before you finalize anything. We can help you avoid these nightmares.