To purchase property a contract of sale is entered into. This contract of sale usually contains language to the effect that "this contract embodies the full understanding of the parties and the seller is not bound by any representations made by any third parties or agents unless contained herein". These words may not be exact but similar and will shield the seller from these types of situations. Since this was amajor component for you choosing this lot, the contract needed to have a provision to provide this. Then when your title search was run on your property an additional search on these lands would reveal the fact that these lands were privately owned. Before the closing this issue come up and you could then decide to cancel the contract. It is my opinion that now it is too late to go against the seller unless you could prove that the seller purposuly conspired to decive you which would be very difficult.
Answered on Jan 27th, 2013 at 7:35 AM