Boundaries and Encroachments-What you Should Know

One of the most important matters you will need to have information on when purchasing a piece of property is the property boundaries. Now, in most cases, a survey will be required prior to the closing of the real estate transaction but this is after you have made an offer on the property and that offer has been accepted. What happens if you want to know where the property boundaries are before making an offer on the property? Surveys don’t come cheap and it can seem rather expensive to have one performed on a piece of property that you may ultimately decide isn’t right for you. There are a few things you can do to help determine where the property boundaries are without going to the expense of an official survey.

One of the first things you can do is to visually inspect the property boundaries. This is actually what real estate agents do when they list the property. So, it is in your best interest to gather as much information as you can about any particular encumbrances the property might have.

If you are unable to determine the exact nature of a particular problem regarding the property but you want to proceed with making an offer on the property then you can go ahead with writing the offer but making the purchase agreement contingent on receiving acceptable information regarding the property boundaries. This could, of course, include a survey as well as an interpretation regarding the property boundaries from a title company.

In the event that find out there is a problem with the boundaries that cannot be fixed you can, of course, still choose to purchase the property but at least you have enough information at your fingertips to determine whether you want to pay full price for the property or possibly offer less in light of a reduced property value. You could also ask the seller to make some other concession in the purchase contract in order to make things even in exchange for your having to deal with the problem.

One last thing you should be aware of, if you do decide to go ahead with the purchase of a property that may have a possible boundary dispute or encroachment, is to make sure that you are able to receive title insurance. This is particularly important because it could affect your ability to obtain financing and it could potentially provide problems later on down the road, particularly if you are looking at building on the property.

 
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