Commercial real estate may be one of the most valuable resources owned by a business. The equity accumulated in the property can be worth hundreds of thousands of dollars or more. In some cases, businesses and commercial property owners may find themselves facing a title dispute with a neighbor or an outside party.
What types of situations might lead to commercial title disputes?
Boundary issues
Every square foot of property is valuable. In some cases, an adjacent property owner might misunderstand where the boundary line between the properties falls. They may attempt to install a fence or a parking lot that contains part of a business’s land. Boundary disputes may require a thorough review of legal descriptions, the support of a surveyor or a lawsuit to resolve.
Problems with easements
An easement provides an outside party or adjacent parcel owner with the right to partially use or access real property belonging to another party. In some cases, there may be disputes about an existing easement. A property owner might claim that the other party abandoned or misused the easement. There could also be disputes about the necessity of a new easement that require a judge’s review.
Ownership disputes
In cases where an outside party can assert an ownership interest in a commercial property, they may try to lay claim to the real estate owned by a business. Property sold during estate administration, a divorce or a partnership breakup could potentially face challenges in the future if a party with an interest in the property did not play a role in the transaction.
Commercial real estate owners facing title disputes may need help responding and protecting their investments, and that’s okay. Responding properly to commercial title litigation can help protect a company’s interests and prevent misconduct, such as ongoing boundary violations.