Real estate transactions can occur at any point between purchasing, leasing, occupying, selling, or terminating the use of land. They can cover construction on the property, management of the property, commercial leasing, and maintenance, as well as the interests and rights considered to be legally connected to the property. Below, I will discuss some common challenges involved with real estate transactions.
Obstacles When Buying Land & Property
When buying land, it is primarily important that you are aware of liens, easements, and zoning laws. A lien gives an entity, such as a bank, the right to maintain ownership of a parcel of real estate until a debt is satisfied. Discovering an unexpected lien on a piece of land or property you wish to acquire can be disheartening and set back your plans. Likewise, it is smart to identify any easements in place before finalizing your purchase. Easements grant others the right to use or cross land for a specified purpose. Such intrusion can be unwelcomed and beneficial to know about up front. Zoning regulations can also pose an issue, especially for those buying land or commercial property. These laws govern the types of structures that can be built on a lot of land, as well as the kinds of activities allowed to be engaged in there. Thus, you must ensure that the land or property you are purchasing is able to accommodate your plans without limitation. For these reasons, it is crucial that you work with a professional who can uncover such roadblocks.
Selling Real Estate & Dividing Land
Some of the same issues can affect sellers, but there are a few additional items that may pose a problem when you are selling land or property. For instance, when selling your land, home, or business, you may be surprised to find that even though all of your personal debts are satisfied, there may be some still owed by previous owners. This is especially true if your land or property was sold by issuing an illegal deed. It may seem unlikely that such circumstances would fall upon you, but these issues do occur, and they can prevent you from being able to complete a sale.
Subdividing land presents its own unique challenges. For example, if your land is over an acre in size or if you want to divide it into at least two or three lots, municipal oversight will likely be required. This is increasingly true if the lots do not have access to an existing public road or if utilities and infrastructure must be built. City ordinances, neighborhood covenants, and deed restrictions may all regulate the layout needed for lots of land in your area. An attorney educated in real estate law can ensure your plans are able to be completed without worry.