Contractor builds house on wrong property

[WPOZZZ]

What would you do?

https://www.hawaiinewsnow.com/2024/03/27/are-you-kidding-me-property-owner-stunned-after-500000-house-built-wrong-lot/

HONOLULU (HawaiiNewsNow) - Anger, accusations and legal action are firing up on the Big Island after a construction company built a half-million-dollar house on the wrong property.

The lot owner doesn’t want the house and has endured problems like higher taxes and squatters. Now, to add insult to injury, she’s being sued over someone else’s mistake.

The still vacant three-bedroom, two-bath house on a one-acre lot in Puna’s Hawaiian Paradise Park is worth about $500,000.

But it could cost a lot of people more than that as they head to court to sort it out.

It all started in 2018, when Annaleine “Anne” Reynolds thought she’d found the perfect, serene parcel in Paradise Park to host her meditative healing women’s retreats.

“There’s a sacredness to it and the one that I chose to buy had all the right qualities,” she said.

The price was also right — available in a county tax auction for about $22,500.

But while she waited in California through the pandemic for the right time to use it, the lot was bulldozed and a house rose on the property. She was unaware of the construction until she got a call last year from a real estate broker who had learned the mistake.

“And then he informed me, ‘oh well, I just sold the house, and it happens to be on your property,’” Reynolds recalled.

“So we need to resolve this. And I’m like, what? Are you kidding me?”

What’s undisputed is that PJ’s Construction was hired by developer Keaau Development Partnership, LLC to build about a dozen homes on properties that the developers bought in the subdivision — where the lots are identified by telephone poles.

An attorney for PJ’s Construction said the developers didn’t want to hire surveyors.

Honolulu attorney James DiPasquale was hired by Reynolds when she was sued along with everyone else associated with the property or construction.

“There’s a lot of fingers being pointed between the developer and the contractor and some subs,” DiPasquale said.

Because it can’t be sold, the house has become a nightmare for Reynolds. A neighbor told Hawaii News Now that squatters were immediately attracted to the brand new vacant house.

“Before they put the fence on this property there was people coming already to this property. I know kind of looking inside,” he said.

When she inspected and saw the bathrooms, Reynolds discovered they’d done more than just look. “Both had poop. The hallway one had poop on the floor. It was so disgusting,” she said.

Along with the cost of fencing, she’s paying property taxes that went from a few hundred to several thousand dollars. The developers tried to settle the issue. Reynold’s attorney said they offered to swap her their lot right next door or sell her the house at a discount.

She refused both offers.

“It would set a dangerous precedent, if you could go on to someone else’s land, build anything you want, and then sue that individual for the value of it,” DiPasquale said.

After trying to resolve the problem, Keaau Development Partnership sued PJ’s Construction, the architect, the prior property owner’s family and the county, which approved the permits.

They also sued Reynolds. “It’s awful. It’s awful,” she said.

Representatives of the developers and construction company and Reynolds all said they are being reasonable and the others aren’t. That’s why the developer says he pulled everyone into the lawsuit — in hopes a judge can help unravel this half-million-dollar mistake.

[Noah930]

Unless there's something very unusual about the two parcels, I might have taken the offer to trade for the lot next door...plus some cash for my troubles.

Now she's on the hook for increased property taxes and upkeep, for a house she doesn't want, and now may not be able to get rid of due to potential squatters. Plus legal fees.

It's not her fault, but it's now her problem. Given that she hadn't built on the vacant land and didn't seem to have imminent plans to do so, I might have taken the easier legal pathway and just traded lots. But perhaps "her" site has a magical view or feng shui, and the other not so much.

[Scott Douglas]

How is this not all on the contractor who built in the wrong place?

[Noah930]

Originally Posted by Scott Douglas

How is this not all on the contractor who built in the wrong place?

Especially as the contractor apparently declined to use a surveryor.

[Scott Douglas]

Originally Posted by Noah930

Especially as the contractor apparently declined to use a surveryor.

Exactly.
He saved a buck and made a HUGE mistake, now he has to own up to it.

[KFC911]

Originally Posted by Scott Douglas

How is this not all on the contractor who built in the wrong place?

It should be .... but money talks .

[ckissick]

I have a vacant lot up in the Sierra. Next time I visit if, if I find a nice new cabin on it, I'll think, Sweet! A free house! And then I'd call a real estate attorney to make it officially mine.

[Tobra]

That house would have already burned to the ground if it were on my property

[Rtrorkt]

What’s undisputed is that PJ’s Construction was hired by developer Keaau Development Partnership, LLC to build about a dozen homes on properties that the developers bought in the subdivision — where the lots are identified by telephone poles.

An attorney for PJ’s Construction said the developers didn’t want to hire surveyors.

Unbelievable that they could get a permit from the county or state without a surveyed platt

[look 171]

I call BS on the none surveyors. Rtrorkt is correct, no way city or county will look at plans without surveying done. Forget about permits.

[speeder]

I just can't believe that you can still buy a house in HI. for $500k. Might have to look into moving.

[A930Rocket]

Originally Posted by look 171

I call BS on the none surveyors. Rtrorkt is correct, no way city or county will look at plans without surveying done. Forget about permits.

^^^ This. Unless the county or city were completely incompetent. Also, why didn’t they add the county/city to the lawsuit? Or maybe they did?

The company suing everybody, says they’re trying to be reasonable. The only thing reasonable is either tear it down and put it back the way it was or possibly trading for the lot next-door and a lot of cash, and it doesn’t sound like she is going for that.

[masraum]

Sounds to me like "you" (developer) farked up my property and built a house on it that I don't want. Now you (developer) need to remove the house and put my property back like it was. Or if I wasn't attached to that particular plot (sounds like she is) then you give me another comparable lot and some cash and you can have your house.

[WPOZZZ]

Originally Posted by speeder

I just can't believe that you can still buy a house in HI. for $500k. Might have to look into moving.

That is construction cost. On the mainland, that house would cost half what it cost to build here.

Land can be dirt cheap out there, and many people buy land as an investment. My dad bought an acre on the ocean back in the 60s, and we left it bare all these years as it was supposed to be where mom and dad would retire. Dad passed in 77 and we kept the land. We finally sold the land in 2012. Then there was the eruption of 2018 and it was all gone. Our property was the one that is smack dab in the middle with the sort of seawalls.

[WPOZZZ]

Now, my question is, Can you keep the house, without paying for it, if it was put on your land without your permission?

I would think both the developer and contractor are in the wrong in this case. The property owner seems like one of those Zen types, and she bought that lot for a reason. No idea how she was going to make it into a retreat without a place to live in, unless she was going to put up a yurt. However, what she had was bulldozed and will never be the same.

Have the developer and contractor remove the house and restore the property to how it was before with new plantings... That would take years for new growth.

Trade property? It will never be the peaceful, serene retreat she envisioned.

Sell the property with the house? Not sure about that with all the lawsuits.

As for permits, Hawaii Island along with all our islands can have oversights in permitting. Heck, in HNL we had some houses permitted, then the permit revoked when the neg=ighborhood discovered it was a monster house coming up.

[kevin993]

The owner of the land is entitled to be restored to her original position.

The developers own that responsibility. They can offer her a different lot and/or cash, but she has no duty to accept.

The developer may have insurance coverage that pays for negligence or mistake (as opposed to intentional misconduct). From her perspective, it would be no different than if she lived in the house, the developer was building a house next door, and and the developer had an accident that ended up burning down her house. From the developer's perspective, it might have an insurance claim for the mistaken construction costs and the costs of resolving (either paying her or paying to tear down the house).

The insurance company likely has a number in mind that it would be willing to pay to make her happy with another lot but would be cheaper than litigation or covering the cost of construction and removal.

The developer and contractor have an issue between them of liability. The contractor acted as the agent of the developer. Without more facts, we can't tell more but they can work it out or litigate with each other. There likely would be insurance coverage and companies involved. The owner of the land isn't required to sort that out.

If the developer or contractor has no insurance coverage and only limited assets, the owner could be stuck. She could either keep the house or sell and find another property. Not ideal but she will want to avoid bearing further losses.

[look 171]

Bulldoze the house and take the crap to the dump (I mean the squatters inside). 25-30k done. Payout some money to original owner, all are happy. It takes two weeks. Should have refunded the buyer their money from the beginning. Maybe realestate agent or broker should be on the hook too for being bone heads?

30k is cheap compare to the lawsuits.

[OK-944]

Contractor should move the house onto the "correct" lot, then take responsibility to have the original plot landscaped to the satisfaction of its owner. Can be done...and should be done!

[MBAtarga]

Is there no title company involvement in HI real estate?

[WPOZZZ]

Originally Posted by MBAtarga

Is there no title company involvement in HI real estate?

There is, but it is not needed for construction. I guess when the house was sold, the title company found the discrepancy. That is probably when the Realtor found out,