Construction loan issues

We closed on a construction loan a month ago. We provided a down payment and land. The bank during closing required an appraisal of the land with projected house info in order to agree on the amount of money we were asking for. Deed search was completed when we bought the land and from the bank. We just started digging for the foundation when someone showed up stating half of the property we are building on is in fact theirs. They stated a survey they completed cuts down the middle of what we thought was our property. The appraisal report includes pictures of the land including the section in question. The bank never requested a survey and I didn't realize I should get one( hindsight 20/20 ). The bank has already released 30% of the total loan amount to the contractor. We have a survey scheduled. After looking back over closing paperwork it states in the contract before any draw payments are made we will provide a survey of the land. We didn't and they still released money. If survey shows we are in fact currently half building on someone's property is the bank at fault? Can we recoup money lost due to their failure to request survey before releasing 1st draw payment? by pertee8193 from Pompano Beach, Florida. Feb 24th 2021 Reply