How many times have you driven in downtown Tampa? How about New York City, San Francisco, Seattle, or Chicago? Those skylines have become a way to easily identify a particular city; those buildings becoming the pride of their residents. Think about it: The Empire State Building, the Transamerica Building, the Space Needle, the Skydeck.
We all know basic information about them, such as whether there’s a nice lounge at the top floor of any of them; whether one of them is owned by a powerful, well-known person; whether any of them has a historical significance or has been featured in movies. But unless you’ve worked within the industry, do you know what happens before one of those wonders is erected?
Due Diligence Surveys
The same way you wouldn’t buy a home without doing a title search, real estate investors need to make sure that not only is title free and clear, but that boundaries are what the seller says they are, that there aren’t any easements running through the land, that there isn’t an upcoming eminent domain issue, permitting issues, etc…
What happens if an issue comes up?
It depends. For example, with easements, you have to look at the type: Is it an easement by necessity allowing another landlocked property access for egress? Or is it a right granted by your potential seller to someone else to make their lives easier? Depending on the type of easement that was granted and its circumstances, you might be able to challenge it. If you cannot, you have to decide whether you can live with it, or move on with your search for a property to purchase. Same happens with a boundary dispute. You want to get that settled before you close on the sale. Otherwise, you’re buying a lawsuit.
Sounds like a headache? It can be, if you don’t have the right people working for you. At Eclipse Building Corp., we’ll do a comprehensive due diligence site survey, and explain in easy to understand terms if there are any issues and your options for resolving them before you commit to purchase. Contact us and let’s talk about your plans. Buying real property is a huge investment. Make sure it’s a good one.