Category: Real Estate Litigation

Easements and the Atlanta Beltline

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A recent legal case regarding the Atlanta Beltline provides insightful reading for those interested in easements. In 2017, the Ansley Walk Condominium Association sued the Atlanta Development Authority, also known as Invest Atlanta, claiming ownership of three properties adjacent to the Beltline.

The case is complex, as the Norfolk Southern Railway Company initially operated the properties as a railway. However, in 2004, Norfolk relinquished its interests in the properties, which then became part of the Beltline. At the time of the transfer, Norfolk reserved an easement to cross over the properties.

In 2017, Norfolk signed an agreement to terminate its easement rights over the properties. However, the agreement was vague, so Norfolk signed a corrective agreement in 2020 to address the issue. Ansley Walk sued, alleging that when Norfolk relinquished its easement rights, Ansley Walk gained unrestricted ownership of the properties.

Ansley Walk claimed damages for inverse condemnation, trespass, attorneys’ fees, and litigation expenses. Both parties filed cross-motions for summary judgment, meaning they each sought a ruling in their favor without a trial. A summary judgment aims to expedite litigation and avoid the expense of a jury trial. However, a summary judgment can only be granted when there are “no genuine issues as to any material fact and that the moving party is entitled to a judgment as a matter of law” OCGA § 9-11-56(c); Pfeiffer v. Ga. Dept. of Transp., 275 Ga. 827, 828 (2002).

After considering the arguments and the law, the trial court granted summary judgment to the Beltline and denied summary judgment to Ansley Walk. This means that, for now, the Beltline has won the case. However, Ansley Walk plans to appeal the decision and ask the Georgia Court of Appeals to review the trial court’s ruling.

In granting summary judgment, the trial court found that Ansley Walk failed to prove ownership of the three properties and that the 2020 corrective agreement properly canceled Norfolk’s easement rights. As a result, the Norfolk agreements about the easements did not transfer any property rights to Ansley Walk.

Although this case’s factual scenario is unlikely in most easement disputes, it is still an interesting example of how such disputes never go out of fashion. If you have a dispute regarding an easement, please contact us at 404-382-9994 to discuss your legal rights.

Quiet Title: Cancelling an Expired Security Deed

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Expiration of Security Deeds in Georgia

We have previously discussed that security deeds (i.e., a mortgage) can automatically expire in Georgia. If a security deed expires, the lender cannot foreclose, and the security deed no longer acts as a lien against the property, and the security deed can be canceled. Generally, under OCGA § 44-14-80, a security deed expires (1) seven years after the maturity date of the security deed, or (2) if there is a statement in the security deed that says the maturity date is perpetual or infinite, 20 years from the date of the conveyance.

Recent Quiet Title Action

The above statute was tested in a recent quiet title action. See Freeport Title & Guaranty, Inc. v. Braswell, A23A0442 (2023). In Freeport, a property owner, A, conveyed real estate to B in 2004. The owner financed the sale, meaning that B borrowed money from A to purchase the property and gave a security deed to A.

B defaulted on the loan, but A did not foreclose on the security deed until 2020. A claimed that the security deed was valid because the security deed has “perpetual/infinite” language and, therefore, the above 20-year rule applied. Conversely, B argued that the security deed (and the 2020 foreclosure) were invalid because the seven-year rule applied.

The Court of Appeals ruled for A, finding that the security deed contained sufficient language to activate the 20-year rule. The Court rejected B’s argument that the language in the security deed was insufficient to show intent for a perpetual duration.

Read the Security Deed

The lesson here is that you must closely read the security deed to determine the expiration date of a security deed. Please call us at 404-382-9994 if you have questions regarding whether a security deed on your property is enforceable and whether you are entitled to file a quiet title to remove the security deed.

Do you have an Easement?

Posted by Jeff on

Unwritten Easements

In Georgia, an easement does not need to be in writing. Easements can be created by adverse use and by implication.

Express Grant

This blog focuses on easements created by implication. When a landowner subdivides property, and the deeds to the subdivided lots describe streets, parks, and lakes, the buyers obtain an easement to use the streets, parks, and lakes.

These are called “easements by express grant” and are commonly created when a subdivision is developed. The developer will submit a subdivision plat that includes streets and parks. When the developer sells the lots in the subdivision, the deeds reference the subdivision plat. Reference to the subdivision plat that shows streets and parks create enforceable easements that allow the purchaser to use the streets and parks.

What about a golf course?

This issue was presented to the Georgia Supreme Court in WS CE Resort Owner, LLC v. Holland et al., S22G0030 (February 21, 2023). In that case, the subdivision plat referenced a golf course. The purchasers claimed that because the subdivision referenced the golf course, they automatically obtained an easement to use the golf course. The dispute arose when the owner tried converting the golf course into condominiums.

The adjoining owners objected based on their claim that they had an easement to use the golf course and, therefore, the owner could not develop it. The adjoining homeowners argued that they had relied on a marketing brochure for the neighborhood that pictured a golf course and described the intended development of smaller homes “overlooking the Par 3 golf course.”

The trial court agreed with the adjoining homeowners and stopped the development of the golf course. The golf course owner appealed. The Georgia Court of Appeals agreed with the trial court. However, the golf course owner then appealed to the Georgia Supreme Court. The Georgia Supreme Court disagreed with the trial court and the Georgia Court of Appeals. It ruled that reference to a golf course in a subdivision plat does not give subsequent purchasers an easement to use the golf course. Thus, the golf course owner was allowed to convert the golf course into condominiums.

Streets, Parks, and Lakes Referenced in a Subdivision Plat Do Create an Easement

The Supreme Court determined that merely identifying a golf course on a subdivision is insufficient to create an easement. Showing a golf course on a subdivision plat did not show a “clear intent” to set apart the designated area for the lot owners’ use or enjoyment. On the other hand, the Court clarified that streets, parks, and lakes identified on a subdivision plat create an easement for homeowners in a subdivision.

Subdivision Plats in Georgia

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subdivision plat

This blog concerns subdivision plats. During the development of a subdivision, the developer submits a subdivision plat to the county for approval. Once approved, the developer records the subdivision plat on the county’s real estate records.

Alleys, Parks and Water Courses, Drains, Easements and Public Places

The subdivision plat includes not only the dimensions of the developed lots but also includes alleys, parks and water courses, drains, easements, and public places. As the developer sells the lots in the subdivision, the deeds transferring the lots to the new owners mention the subdivision plat. When the deeds reference the plat, the new owner gets an automatic easement to use the alleys, parks and water courses, drains, easements and public places marked on the subdivision plat.

Transfer of Public Space from Developer to the HOA

Once the developer finishes the subdivision, the developer usually transfers the alleys, parks and water courses, drains, easements and public places to the neighborhood’s homeowner’s association.

Dedication to Public by the Developer

Recording a subdivision plat showing areas set apart for public use creates not only a grant of an easement to the purchasers of the property, but also raises a presumption of intent to dedicate to the public. However, to complete a dedication of land to public use, the developer must not only offer to dedicate, but the county must accept the offer.

What Happens When a Public Space Isn’t Used

Sometimes, after the developer transfers the public area shown on the subdivision plat to the HOA, but the area is never used. And often, the HOA fails to pay taxes. When this happens, the county will have a tax sale and sell the property.

As mentioned above, each lot owner obtained a right to use the public area when they purchased their lot. The right to use the public area is considered an express grant and is an unalterable property right. The rationale is that the price of the lots included the use of the public areas. This principle is true even if the lot owners have never used the public space.

Call Us!

If you have questions about a subdivision plat or property rights, call us at 404-382-9994 to speak with an attorney.

Boundary Disputes in Georgia

Posted by Jeff on

Unfortunately, neighbor disputes over boundary lines are common. These disputes often involve the placement of driveways, garages, and fences. These disputes are serious because they create uncertainty, expose property owners to potentially adverse outcomes, and falling out with your neighbor is unpleasant and stressful.

Legal Descriptions

When boundary disputes arise, a property owner must first determine what property belongs to them and what property belongs to their neighbor. Each time a property is sold, the seller gives the buyer a deed. The deed is supposed to include a “legal description” that describes the property’s boundaries. Unfortunately, sometimes legal descriptions lack enough detail to accurately know where the boundaries are. And even when the legal description is sufficient, unless the property already has surveyor pins or other permeant markers, it is not easy to know the exact boundaries.

Surveys

Usually, a boundary survey from a licensed surveyor is required when a boundary dispute occurs. In these situations, a licensed surveyor reviews the real estate deeds, comes out to the property, physically measures the property, and installs pins to mark the boundaries. Based on the surveyor’s research and physical examination, the surveyor creates a written diagram that visually shows boundaries, property improvements, and encroachments. On rare occasions, if the real estate deeds are unclear, a surveyor may be unable to generate an accurate survey. Also on rare occasions, one surveyor may disagree with another surveyor.

Encroachments

When there is disagreement regarding an encroachment or an alleged encroachment, you should consider calling an attorney. If a property owner does not resolve these disputes, they may lose land or be liable for damages for trespass, including punitive damages and attorneys’ fees. And, an owner may be forced to incur the expense of removing a fence or tearing down an improvement. All of these outcomes are expensive and often preventable with good legal representation.

What to Do If You Have a Boundary Dispute

1. First and foremost, regardless of whether you think you know where the boundaries are, get a surveyor to check and confirm. This is especially true when you buy a property or make improvements (for example, installing a fence).

2. If the surveyor cannot establish the boundaries (because the legal description is insufficient) or there are two surveyors who disagree, you should attempt to enter into a written boundary agreement with your neighbor.

3. If you still do not see eye to eye with your neighbor, consult with an experienced real estate attorney. There are many nuances to boundary disputes, such as adverse possession, whether a prior fence has established a new boundary line by acquiescence, oral agreements, and other agreements by prior owners that may be binding (“run with the land”). An experienced real estate attorney can guide you through these issues, ultimately saving you money, improving your odds of a positive outcome, and alleviating unnecessary stress.

Call Us

We are available at 404-382-9994 to discuss any questions you may have concerning a boundary dispute.