Buying commercial real estate in Arizona can be a smart business move. You can see a high return on your investment if you know what to look out for. It can be rewarding to get the title to a property, which signifies your legal ownership.
Sometimes, a title may come with hidden issues that could affect your investment. It is important to understand what you might encounter and how to resolve title issues before they become major problems.
Hidden liens and encumbrances
In some cases, previous owners of the property may have left unpaid debts that resulted in liens on the property. There could also be encumbrances like easements that limit your use of the property. A thorough title search can reveal these hidden issues.
Missing heirs or undiscovered wills
If the property you want to purchase has passed through several owners, there is a chance that a missing heir could show up and claim ownership. Additionally, an undiscovered will might surface, leaving the property to someone else.
Errors in public records
Clerical or filing errors could affect the deed and cause undue stress. These errors could take time and money to fix, so be sure to check the public records meticulously.
Disputes over property boundaries
Disagreements over where your land ends and your neighbor’s begins are common. Such disputes could affect your ability to use the property as you intended. To prevent this, get a survey of your property and ensure it aligns with what’s on the title.
Forgery and fraud
Unfortunately, real estate transactions are not immune to fraudulent activities. Someone may try to sell a property they do not own by forging documents. Ensuring the authenticity of the title and all associated documents is necessary to protect your investment.
By diligently investigating potential title issues, you can make informed decisions and save yourself from future financial and legal woes.