Real Estate Traps for the Unwary
By Real Estate Attorney Chuck E. Marunde, J.D. (Ret.)
Port Angeles, Washington, and Sunny Sequim, Washington

Trap for the Unwary #1: The Trespassing Fence
Trap for the Unwary #2: The Trespassing Driveway
Trap for the Unwary #3: Timber Trespass
Trap for the Unwary #4: The Good Samaritan
Trap for the Unwary #5: Encroaching Branches
Trap the the Unwary #6: Road Maintenance
Trap for the Unwary #7: View Easements
Trap for the Unwary #8: Speed Bumps
Trap for the Unwary #9: Private Well on Vacant Land
Trap for the Unwary #10: Shared Wells
Trap for the Unwary #11: Well Circles
Trap for the Unwary #12: Buying Vacant Land
Trap for the Unwary #13: Buried Fuel Tanks
Trap for the Unwary #14: Contaminated Ground Water
Trap for the Unwary #15: Clandestine Land Fills

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Traps for the Unwary Millionaire

Over the the past 25 years, I’ve had many incredible clients as an attorney and Realtor, and some of those clients became millionaires buying, selling, and developing real estate. Several were home builders and are now worth ten to fifty million dollars net. A few lost everything once and earned it all back. I admire successful people. All of these people had some things in common: an intense drive to succeed, tenacity and perseverance, creativity, and each of them took massive action to get where they are now.

There is one other thing most of them also have in common. Think of it as another Trap for the Unwary. Eight out of ten have done almost no estate planning to avoid probate and taxes, and they have done virtually nothing to shield their personal wealth from business liabilities. In this litigation fertile culture we live in, deep pockets are great targets for potential plaintiffs and their attorneys. A large portfolio of real estate is the ideal treasure chest, since it cannot quickly be liquidated and converted to a safe haven.

May I suggest a wise course of action? First, find a professional who really understands business entities, business development and business succession, estate planning, trust planning, capital gains taxes, insurance devices, securities, real estate, and asset protection. Do not assume your average financial adviser or average attorney understands these subjects in depth. Most do not. I strongly recommend you do not let an inexperienced planner experiment with your life’s work. I could talk for hours on this subject, but I won’t.

Second, get a good plan and implement that plan. And find a professional who is both competent and trustworthy. When you find that person, keep them for life. You will make more money even after paying their fees than you ever could taking short cuts.

To read some of my articles, see one of my sites at: http://freerealestatelaw.com/assetprotection/ and
for a review of the types of trusts that can revolutionize your planning, take a look at: http://freerealestatelaw.com/assetprotection/TypesofTrusts.html and
for a discussion of asset protection, see: http://freerealestatelaw.com/assetprotection/assetprotect.html.

Best regards,

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Real Estate Traps for the Unwary
By Real Estate Attorney Chuck E. Marunde, J.D. (Ret.)
Port Angeles, Washington, and Sunny Sequim, Washington

Trap for the Unwary #1: The Trespassing Fence
Trap for the Unwary #2: The Trespassing Driveway
Trap for the Unwary #3: Timber Trespass
Trap for the Unwary #4: The Good Samaritan
Trap for the Unwary #5: Encroaching Branches
Trap the the Unwary #6: Road Maintenance
Trap for the Unwary #7: View Easements
Trap for the Unwary #8: Speed Bumps
Trap for the Unwary #9: Private Well on Vacant Land
Trap for the Unwary #10: Shared Wells
Trap for the Unwary #11: Well Circles
Trap for the Unwary #12: Buying Vacant Land
Trap for the Unwary #13: Buried Fuel Tanks
Trap for the Unwary #14: Contaminated Ground Water
Trap for the Unwary #15: Clandestine Land Fills

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Timber trespass happens far more than most people realize. An unintentional or intentional trespass onto someone’s property and cutting trees is “timber trespass.” People can work up a serious froth over this, and battles ensue. I’ve represented many clients in civil lawsuits on this. You can listen to our short KONP audio on timber trespass.

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What do I mean? There are about a thousand ways to get into legal trouble in a real estate transaction, so my recommendation is that you practice preventive law to stay out of trouble before you sign a contract to buy. There are literally volumes written on the problems people get into, and I’m sure you don’t want an expose here on that laundry list, but you can save yourself so much stress, money, and time by doing your due diligence ahead of time, and frankly, if you’re not a real estate expert now, you need to become one unless you like playing Russian Roulette. I realize this is blunt language, but would you rather I not tell you the truth from a real estate lawyer’s perspective? Thank God I’m no longer a lawyer. I’m a Realtor now, but I still see the same old nightmares all the time. My hope for you is that you live long on your real estate and prosper!

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Question: I purchased a 5 acre parcel in Clallam County, but just found out (after closing) that the neighbor’s fence line (a 1947 barbed wire fence) is about 7 feet on my property at one end and about 2 feet at the other end. What can I do?

Answer: Buying property in an area that developed from agricultural or dairy farms, such as the Sequim and Port Angeles areas, means fence lines are not always the true survey line. But that isn’t obvious when you’re buying property, unless you have a survey (prior to closing and with the right language in the addendum, etc.). The best solution is to work it out with the neighbor. Move the fence at your cost, if your neighbor is agreeable. If not, you might find yourself just leaving it where it is, unless you can’t for various reasons. If you cannot work out any solution with your neighbor, and you don’t want to leave the fence where it is, the legal cause of action is called a “Quiet Title Action.” That is expensive and stressful. Honestly, having been a lawyer and now a Realtor, there are so many powerful reasons to work with an experienced Realtor, such as this one, that I can’t honestly imagine why someone would take on so many risks themselves without good counsel. There are so many Traps for the Unwary out there. Just my opinion. Of course, I could be wrong.

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Among real estate lawyers there is a phrase that sums up much about a case, “the neighbor from hell.” Unfortunately, there are more of these folks than people may realize. True story. My client’s neighbor put a giant concrete speed bump in the shared driveway but just past the neighbor’s turn off. When my client had it removed, because it did $900 damage to his car bottom, the neighbor began putting large stones in the driveway, then paint in the water puddles after the rain, and also stood in the middle of the driveway blocking my client’s exit. Amazing, isn’t it? Just amazing!

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There are several thousand business owners in the Port Angeles and Sequim area. How many of these owners have a succession plan for their business? In other words, how many have business planning with an exit strategy and the business equivalent of estate planning? Statistically, 70% of Americans have no estate planning at all. My guess is that 70% of business owners have no business succession plan. So if you are a business owner and your partner dies, maybe your partner’s widow will become your new partner. Hmmm. Scary thought? There are worse things. I think.

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One of the top 10 real estate traps for the unwary when buying real estate (from my experience as a real estate lawyer and now Realtor) is the issue of easements, including driveway easements, access easements, view easements, well maintenance easements, and utility easements. In Clallam County, we have a lot of farm land that was chopped up and developed over the years, and surveys are often inaccurate, but more importantly, people often don’t know where the real easements are. Adverse possession and easement by prescription are real issues here. Know what you are buying! This is a pretty serious reason to hire a Realtor who is knowledgeable and experienced about legal issues. Hint hint.

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