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Woman stunned after Hawaii home built on wrong lot

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https://www.sfgate.com/hawaii/article/hawaii-home-built-on-wrong-lot-19371615.php

'I wanted to cry': Bay Area woman stunned after Hawaii home built on wrong lot​

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The home that was built in Hawaii on a plot owned by Anne Reynolds, who lives in the Bay Area.
Anne Reynolds/Courtesy

By Andrew Chamings
March 28,2024


In 2018, Anne Reynolds bought an acre of empty green land where the stars aligned on Hawaii’s Big Island. She had plans to one day build a healing retreat for women there. Then, someone accidentally built a house on it.

The bizarre story, which involves a construction crew building a three-bedroom family home on the wrong plot of land, has resulted in high emotions, recriminations, and now a court case in which the developers are suing nearly everyone involved.
“It’s terrible. I felt like I wanted to cry,” Reynolds told SFGATE. “There is this house on my land, and it’s not mine.”

A lawyer for the developer, however, argues that the development company is the only party to have sustained monetary losses in the ordeal.
Reynolds, a relationship coach and energy healer from Concord, California, was persuaded to buy the land in Hawaiian Paradise Peak by her daughter, who lives in Hawaii. As a big believer in numerology and astrology, Reynolds said the spot was the perfect match for her plans.
“I believe in the sacredness and the sanctity of the land,” Reynolds said. “The coordinates aligned with my zodiac sign. And you could hear the ocean.”
The pandemic stalled Reynolds’ plan to build the retreat on the plot she had bought at a county tax auction for about $22,500. During this period, she says she received letters in the mail from a developer offering to buy the land, which she ignored.

Then, one day last June, just as Reynolds was about to meditate, she said she got an unusual call from a real estate agent in Hawaii. “We sold a house,” Reynolds recalled the man saying. “We sold a house that happens to be on your land. You need to resolve this.”
Reynolds was stunned and confused, and said she told the man to remove the house from her property.
She soon found out that a building company named PJ’s Construction was hired by a developer named Keaau Development Partnership to build homes on the tract. The crew was supposed to build the home on parcel 115, but somehow ended up on Reynold’s plot, 114, next door. What’s more, the newly constructed house had been sold.

It’s unclear exactly how the builders bulldozed and built on the wrong lot; Reynolds said she believes it may have been due to them miscounting the number of telephone poles on the street and not using a surveyor. A lawyer for PJ’s Construction told Hawaii News Now that developer “didn’t want to hire surveyors.” Keaau Development’s lawyer, Peter Olson, told SFGATE that this was not true.

“Best efforts were made to ensure that the home was built on the correct property,” said a letter co-signed by PJ’s Construction and Keaau Development sent to Reynolds and reviewed by SFGATE. “The home was not maliciously built on parcel 114.”

The mistake was only realized toward the end of the sale of the property in the summer of 2023 when the title company was trying to close escrow. The discovery nullified the sale by the developer, which never owned the land in the first place. An MLS listing for the home that was priced at $499,000 has since been taken down.
The ordeal was only about to get worse for Reynolds, who says squatters moved into the empty home.

“There was poop in the toilet. Not only inside the toilet, but on the toilet seat,” Reynolds said of when she first visited the house last month. She alleges the back door wasn’t locked. “The house was screaming, ‘Rob and vandalize me.’”
Reynolds said her property taxes more than doubled due to the increased value of the land. She said she hired an attorney “well versed on the art of feminine negotiation,” and was expecting to receive an offer from the developer, but the conflict only escalated. In a final twist that even Reynolds didn’t see coming, the developer is now suing her. In a civil case filed on Jan. 30, the developer alleges Reynolds was “unjustly enriched” by the construction of a home on her land and should pay them back.

Reynolds said Keaau Development offered “any other plot of land” on the street in exchange for hers, but she turned them down. Olson confirmed she rejected the offer of an identical lot. “Her demands weren’t reasonable,” he said.
“It’s an extremely frivolous, baseless lawsuit, and we are seeking damages,” Reynolds’ attorney James DiPasquale told SFGATE. “It’s just pure bullying.”

“It feels like a big injustice,” Reynolds said. “They make a mistake, and they’re suing me for their mistake.”
The developers’ lawyer, however, said that Reynolds appears to be taking advantage of the mistake. “This is not bullying,” Olson said. “Keaau Development Partnership is the the only entity that has suffered hundreds of thousands of dollars’ worth of losses. She’s trying to exploit the situation to get money from my client and the other parties.”
“The property has increased in value over hundreds of thousands of dollars without having her pay a penny for it,” he added.
Keaau Development is also suing almost everyone involved in the mistake, including the construction crew, the architect, the county and even the previous owner of the land Reynolds bought. The developer alleges that after paying PJ’s Construction about $300,000 to build the home, the owner of the company “materially breached the contract by constructing a house on the wrong lot,” and failed to “conduct his due diligence in locating lot 115.”

Reynolds isn’t sure whether her dream of building a women’s healing retreat on the lot will ever materialize.
“This house is just there, like a cloud following me around,” Reynolds said. “And it keeps raining on me.”
 
I think this story was discussed recently in one of Steve Lehto's YouTube videos. This story is just full of fail, on the part of multiple entities. I feel much sympathy for the actual owner of the parcel. And it's typical of a developer to view it purely in terms of dollars and to argue that she has been "enriched" by the error, when in fact she feels that she has been violated because the construction of the house has destroyed the natural sanctity of the site.

It will be interesting to see what a court decides. If I were the judge, I would require the developer to remove the house and to restore the site to its previous condition.

Such things happen, probably more often than we think. many years ago I was engaged to design a house for a client. As part of my preparation, I visited the site to get a feel for the terrain, preparatory to thinking about where on the site to place the house. I had a copy of the survey map for the subdivision (this lot was the last unbuilt lot in a subdivision that was 15 or 20 years old -- that should have been a clue). As I stood on the road at the telephone pole that stood basically at what should have been the westerly front corner of the lot, it looked like the abutting house was VERY close to the property line.

I reported back to my client that I had some concerns. He consulted his lawyer, who advised hiring a surveyor. So he did. And the survey showed that the abutting house was FAR too close to the property line, was within the zoning side yard setback, and the underground electric conduit from the pole to the neighboring house traversed my client's land. Apparently, whoever laid out the neighboring house got confused between true north and compass north (the declination in this corner of the universe is about 13 degrees).
 
Well the house is in her court. She can accept the house as a gift. She can force the developer to restore her property and pay the inflated property tax as well as lawyer fees.

She could offer to purchase the house for the exact outlay that the developer paid to build the house minus lawyer fees, escrow and title fees and repairs to fix the vandalism. The house would have to be turnkey with all utilities connected. Oh and the developer could toss in a house warming party… catered of course…. I’m thinking pirate themed. Gonna need a nice yard for the festivities.

She could sue the developer and all other related parties. The goal would be to retain the house in similar to the above condition… except the purchase. On top of that is the pain and discomfort of an intrusive mean spirited stunt that caused trauma that only a million dollars can make right. Her daughter also has a cause of action… give me a few days to flesh that out.
 
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This guy has an interesting explanation of it, and a lawsuit that was filed againt the property owner.
 
This takes me back to when I was a little boy, and our neighbor's former citrus grove than had been staked out for a subdivision. I was too young to know that survey stakes were anything other than swords and spears that nice men had left in the ground for us to pull out play with.
After much swashbuckling, my mom saw all the neighborhood boys waving these stakes at each other and yelled at us to "put them back where we found them" - -that surely made it even worse.. As you can imagine, there's no way those stakes went back in the exact same spots, but it kinda looked close enough that our little minds thought no one might notice or care. God only knows how much chaos that probably caused with building pads.
 
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My dad loved to tell the story about how grandpa "stole" 200 square feet from a property developer. The old family house neighbored farmland and was never fenced. The surveyors came and marked out the property boundaries in advance of development and he carefully went and moved a bunch of stakes over two feet along his property boundary. Nobody noticed until many houses were built, and they couldn't figure out why several driveways were coming up short. They hired the surveyor to comeback and remeasure everything and figured it out. But they realized they couldn't do anything to prove that it wasn't the surveyor's mistake. They let it go and grandpa was ever so proud and bragged to everybody about it. 30-40 years later the same developer bought up the entire neighborhood house by house with grandpa being one of the last holdouts. The developer told him to his face that if the property line issue hadn't stuck in his craw, he probably would never have had his eyes on that neighborhood. All those old houses ended up getting demoed and the suburban sprawl just got that much bigger.
 
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