A Hawaii judge has ordered the demolition of a $500,000 home built on the wrong lot, which had been trashed by squatters.

A construction company accidentally built a house on a developer's lot, leading to a lawsuit against the true owner of the property.

A Hawaii judge has ordered the demolition of a $500,000 home built on the wrong lot, which had been trashed by squatters.
A Hawaii judge has ordered the demolition of a $500,000 home built on the wrong lot, which had been trashed by squatters.

The construction company responsible for building a half-million dollar house on the wrong lot in Hawaii must demolish the house and pay for the damages, as ordered by a judge.

SFGATE reported that the judge dismissed a countersuit filed by the developer against the true owner of the land.

In 2018, Annaleine Reynolds purchased a vacant one-acre lot in Hawaiian Paradise Park on the Big Island for approximately $22,500 at a county tax auction. Reynolds, who resides in California, intends to relocate and use the property to host meditative healing women's retreats.

Last year, she received a call from a real estate broker stating that a three-bedroom house had been constructed and sold on her property. The listing for the house, which was later removed, had priced it at $499,000. However, the error was only discovered during the closing process when the broker conducted a title check, which invalidated the sale.

home for sale with sign in front
Last year, Annaleine Reynolds learned that a house had been built on a vacant lot she owned in Hawaii. The developer suggested swapping lots with her, then filed a countersuit against Reynolds when she rejected the offer. (iStock)

"Reynolds earlier this year told SFGATE that he felt like crying because there was a house on his land that wasn't his."

The construction of a dozen homes in a subdivision of the Big Island's Puna district by PJ's Construction, which was hired by Keaau Development Partnership LLC, began with a building blunder. According to the ruling, they did not conduct a survey before starting construction.

The contractor of the project testified that he miscounted the lots by using telephone poles as a reference and subsequently constructed the house on the incorrect side of the pole.

After the house was constructed, the annual property taxes increased from $400 to $4,000, according to local media reports.

judge gavel
Judge Robert Kim ruled that the construction company will foot the bill for a new contractor to demolish the house mistakenly built on Reynolds' property. Kim also dismissed a counterclaim filed against Reynolds by the developer that accused her of exploiting the situation for her own gain. (iStock)

To her dismay, when Reynolds visited the house in February, she discovered the doors were unlocked and squatters had taken up residence inside.

"The bathroom was filled with fecal matter, on the floor, in the hallway, and on the toilet seat, according to the woman who spoke to the New York Post. She was taken aback."

Reynolds rejected the developer's proposal to swap a neighboring property, stating that she felt a spiritual connection to the land she had purchased.

Reynolds was accused by KDP of exploiting the construction company's error and seeking "unjust enrichment" through a counterclaim.

Peter Olson, an attorney representing the developer, previously stated to Planet Chronicle Digital that the increase in the value of Ms. Reynolds' property is a legal benefit to her, but it would be unjust for her to retain all of that benefit since his client spent $300,000 on the construction and Ms. Reynolds received a free house.

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In late June, Robert Kim rejected that assertion and ordered a new contractor to demolish the undesirable structures, with PJ's, the Hawaii Tribune-Herald reported.

The ruling stated that KDP and PJC's clear motivation was to cut corners in order to reduce construction costs.

Reynolds' request to restore the property to its pre-development state was denied by Kim, who ruled that it was impossible. However, he did grant her attorney's fees and costs. Reynolds also has the option to seek additional damages.

No comment was immediately provided by the attorneys representing Reynolds and the developer on Monday.

by Hannah Ray Lambert

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