Seller/Owner/Builder Disclosure Issue

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idahofarmchick

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We purchased a home from a seller that was agent/owner/builder. After purchasing the home we found out the county did not recognize the survery that was recorded that the builder was using as it's "footprint" for the lot. We thought we were purchasing .25 acre but the county only shows we own .10 acre of it (oddly it is the portion of the lot that our house doesn't sit on either!). We contacted the seller/builder about the problem and found out they knew about the problem but said the county was wrong, that the survey was correct and there was no reason the county should not have recognized it as valid. They even gave us a letter sent to them from the county prior to us buying it from them and in this letter the county gave them specific instructions to file for a quiet title in order for the title for the entire lot (.25 acre) to be recorded in their name. They chose not to do this and hence they were unable to transfer title for the entire piece of property to us. We have since filed for a quiet title and have obtained one. After finishing the quiet title action we requested the seller/owner/builder pay for our attorney fees since it was their responsiblity to take care of this matter prior to selling it. They are refusing to do so, claiming the only thing we gained by filing for a quiet title was "peace of mind" because it was unnecessary since the county has no jurisdiction over property lines, ect.

We are stumped as to what we should do next. We are really wanting to go the route that they should have disclosed this issue with us prior to closing, even if they felt it wasn't a necessary action to file for a quiet title like the county requested them to do. However, we have since learned that they didn't fill out a typical Property Disclosure Form that our state, Idaho, requires. They only had to fill out the General Contractor Property Disclosure Form which seems to me is very limited in what the General Contractor has to disclose, specifically, it doesn't state they have to disclose any "material facts" that might hinder someone from purchasing the property or anything that might stop the transfering of title to the buyer. Do you know anything about this form and what it covers?
 
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