Why it is Important to Get a Land Survey Before Purchasing Commercial Real Estate
Before investing in commercial real estate, conducting a thorough land survey is one of the most important steps you can take to protect your investment. A land survey can reveal boundary disputes, easements, encroachments, and potential land use restrictions and provide you with a clear picture of what exactly you are buying. Whether you’re planning to buy office space, retail property, or an industrial site, a land survey can help you make an informed decision and save you time, money, and potential headaches down the road.
What Is a Land Survey?
A land survey is a detailed examination and mapping of a property’s boundaries, physical features, and legal attributes. Conducted by a licensed surveyor, this process can provide a wide range of essential information about a property and help you decide whether it is worth investing in.
A proper land survey can:
- Confirm the precise dimensions of the land and reveal if there are any boundary related issues with neighboring properties.
- Reveal easements and other legal rights that adjacent landowners and entities such as utility companies might have to access or use a portion of the property.
- Identify whether any structures from neighboring properties extend onto the land or if existing structures on the property encroach on someone else’s land.
- Provide details on zoning classifications and any restrictions that might affect future development or business operations.
- Map out natural and man-made features, such as elevation changes, bodies of water, roads, and utility lines.
- Determine if the property is in a floodplain or subject to environmental regulations that could impact construction or use.
Why a Land Survey Is Needed Before Purchasing Commercial Property
Purchasing commercial real estate is a significant investment and skipping a land survey can lead to serious financial and legal consequences. A survey can provide a clear and accurate picture of the property’s boundaries, legal status, and potential limitations and help you avoid costly mistakes down the line. Here’s why a land survey is essential before finalizing a commercial property purchase:
Confirms Legal Boundaries
Property boundary disputes are a common issue in real estate and resolving them can be expensive and time-consuming. A land survey can precisely define the property lines and ensure that there are no overlaps or conflicts with adjacent properties. This is particularly important in densely populated commercial areas, where buildings and lots are often closely situated.
Without a survey, you might unknowingly purchase land with unclear boundaries, which can lead to disputes with neighboring property owners. These conflicts could escalate into lawsuits, force you to make adjustments to your property that you might not want to, or prevent you from fully utilizing the land as planned. A land survey can eliminate these uncertainties and make sure you know what you are paying for.
Identifies Easements and Restrictions
Easements grant certain entities, such as utility companies, municipalities, or neighboring property owners, legal rights to access or use portions of a property. A land survey can identify any existing easements and restrictions that might impact development plans or business operations.
For example, if the property you are planning to buy has an underground utility easement running through it, you might not be able to build on that portion of the land. Similarly, a right-of-way easement might allow neighboring businesses or the public to access part of the property. Failing to identify these restrictions in advance could lead to costly modifications or legal disputes after purchase.
Ensures Compliance with Zoning and Land Use Laws
In California, zoning laws regulate how commercial properties can be used. These laws can affect everything – from building height and parking requirements to permitted business activities. A land survey can provide information on zoning classifications and any associated restrictions, which can help you determine whether they align with your intended purpose and whether you will be able to develop and use the property like you plan to.
Uncovers Potential Environmental and Flood Risks
Environmental factors can significantly impact the usability and value of a commercial property. A land survey can reveal whether the property is located in a floodplain, subject to environmental restrictions, or affected by hazardous conditions.
For instance, California has strict environmental regulations that protect wetlands, endangered species habitats, and historically significant sites. If a portion of the property is designated as a protected area, development might be severely limited or require costly environmental impact studies.
Additionally, properties in flood zones might require special construction measures or expensive flood insurance. Failing to assess these risks in advance can lead to unexpected costs and legal challenges. A thorough land survey can help you evaluate potential environmental concerns and plan accordingly.
Prevents Costly Mistakes
One of the biggest risks of purchasing commercial real estate without a land survey is the potential for unforeseen financial losses. Issues such as encroachments, inaccurate boundary descriptions, zoning violations, and unrecognized easements can lead to significant legal battles and delays in construction, which can prevent you from developing the property as planned.
For example, if you unknowingly purchase a property with a building that encroaches onto a neighboring lot, you might be forced to remove or modify the structure, which can be costly. Similarly, discovering too late that a property cannot be used for its intended purpose due to zoning restrictions could lead to financial losses and operational setbacks.
By getting a land survey done, you can identify potential red flags early, negotiate better terms, address issues before they escalate into major problems, and move forward with confidence.
How a California Real Estate Lawyer Can Help with Land Surveys
Reviewing and Interpreting the Survey
Land surveys contain technical data that can be difficult for you to interpret without legal guidance. Your lawyer can review the survey and explain various issues such as boundary lines, easements, encroachments, and zoning classifications. They can help you understand how these factors can impact property use, development plans, and potential liabilities.
Identifying and Addressing Potential Legal Issues
If a land survey reveals discrepancies such as overlapping property lines, unrecorded easements, or encroachments, your lawyer can take steps to resolve them before the transaction is completed. They can negotiate with neighboring property owners, work with surveyors to clarify boundary disputes, or ensure that easements are properly documented and do not restrict intended property use.
Ensuring Compliance with Zoning and Land Use Laws
California has complex zoning regulations that dictate what can be built on a commercial property. Your lawyer can analyze the survey and review local zoning laws to ensure the property is suitable for your intended business operations. If zoning restrictions pose challenges, they can assist you in seeking variances or rezoning approvals.
Handling Title Issues and Property Rights
A land survey is often used alongside a title search to confirm property ownership and uncover potential legal claims. If the survey reveals conflicts with recorded deeds or other title issues, your lawyer can work with title companies, negotiate solutions, and ensure you receive clear ownership rights.
Negotiating with Sellers and Third-Parties
If a survey uncovers issues that could potentially impact the property’s value or place any limitations on how it can be used, your lawyer can negotiate with the seller on your behalf to address these concerns. This might involve requesting a price reduction, requiring the seller to resolve encroachment issues before closing or adding legal protections in the purchase agreement.
Drafting and Reviewing Contracts
Your lawyer can make sure that purchase agreements, easement documents, and other contracts reflect the survey findings and protect your interests. They can include contingency clauses that allow you to withdraw or renegotiate the deal if significant survey issues arise.
Protect Your Investment with Experienced Legal Guidance – Contact Garmo & Garmo Today
Purchasing commercial real estate is a significant investment, and skipping essential due diligence – like a land survey – can lead to costly legal disputes or unexpected restrictions. At Garmo & Garmo, our experienced real estate attorneys can make sure that you have a clear understanding of your property’s legal standing before you finalize your transaction.
Call us today at 619-441-2500 or fill out our online contact form to schedule a consultation with one of our seasoned California commercial real estate attorneys.
