Ask Phyllis: a blog series of frequently asked real estate questions.
Dear Phyllis,
I look forward to your weekly real estate column, and I believe I have a new topic for you. My son owns a pool company and recently purchased a home. His goal was simple. He wanted a property where he could park his work trucks and rent the house to his operations manager.
After closing escrow, he began parking the trucks at the back of the property near several high-voltage power lines. Soon afterward, a utility company representative informed him that he could not park there because that portion of the property was subject to a utility easement that required unrestricted access.
His Realtor knew that truck parking was the primary reason for purchasing the property. Is the Realtor responsible? Concerned Parent
Dear Parent,
I understand your frustration. Your son purchased the property for a specific business purpose, only to discover after closing that he could not use it as intended. As a Realtor, I cannot provide legal advice or determine whether another real estate professional is legally responsible. However, I can offer some general guidance.
An easement gives another party the right to use a portion of a property for a specific purpose. Utility companies commonly hold easements that allow them to inspect, maintain, and repair equipment. In many cases, property owners can still use the land, but they cannot interfere with the utility company’s access.
Your son should carefully review the preliminary title report, the final title policy, and all seller disclosures. Utility easements are often identified in those documents. Another important question is whether the Realtor knew that parking the trucks was the primary reason for the purchase. If so, your son should gather any emails, text messages, or other written communications discussing that intended use.
Because this situation involves possible liability, I encourage your son to consult a real estate attorney. An attorney can review the transaction documents and determine whether any party failed to disclose a material limitation affecting the property’s intended use.
This situation also serves as a reminder to all buyers. Before purchasing a property for a specific use, always verify zoning regulations, easements, and any other restrictions that could affect plans. I wish your son a successful outcome.
