7 On Your Side helps New Jersey homeowner fix dispute over state's claim of land ownership

AVON-BY-THE-SEA, N.J. (WABC) -- A Jersey shore homeowner who tried to sell her home and found out the state actually owned most of her land, has learned that the land actually was bought from the state nearly a century ago.

It was time to sell the Jersey shore home where Margaret Codey raised her family. Now with grandchildren, she was looking to downsize. So she put the house on the market, found a buyer, then got some shocking news.

"The state owns 88-percent of this property," said the homeowner. Margaret Codey got the bad news from her buyer's title company. She didn't have clear title to the property, in her family since the 50s, so Margaret's deal fell through days before closing.

"I just don't know how the state, in all these years, didn't send something or do something," Codey said.

One-hundred years ago, when there were no homes here in Avon, the neighboring Shark River and the ocean would meet the state laid claim to any land where the water flowed. In a 1920 aerial map, the tide covered the land where her house would eventually stand. When it was held back, beach-front homes were built but left behind a big question. Was the state ever paid for the land?

"We are going through this process they could turn around and the money involved could be astronomical," said Codey's daughter, Missy Peters.

Because the state bases the bill on current fair market value of the land, they were looking at the possibility of owing as much as $300-400,000.

And experts told her the process also can take a year and a half to settle. 7 On Your Side had asked the Department of Environmental Protection and local legislators Senator Bob Singer and Assemblyman Dave Rible for help in speeding up the process and issuing Margaret her land grant. But after 7 On Your Side got involved, the year long process was pared down to just a couple of months.

And instead of years, it took minutes for the 12-person New Jersey Tidelands Resource Council to take a look at its claim on Margaret's property and decide to release it.

"So it went from $300-400,000, we just heard in the hearing, it's a thousand dollars. A thousand dollars," said a very relieved Peters.

"Thank you very, very much. You will also be able to now help many many other people," said Codey.

Codey said her home is back on the market. But as many as 100 homeowners in Avon alone, may still be subject to a New Jersey Tidelands riparian claim. In order to clear up the confusion, the state D.E.P. will hold a town hall style meeting with area homeowners on Aug. 26 at the Avon town hall (301 Main Street, Avon-by-the-Sea, NJ 07717) from 4:30 to 6:30 p.m.