If you’re looking to invest in commercial property, you may be working with a pretty tight budget, and that can lead you to look for ways to cut back on costs associated with the purchase. One expense that some buyers may try to avoid is the cost of a land survey. A land survey can tell you a lot about the property you’re working to acquire, and even if there haven’t been any issues with the property in years, a land survey is definitely something you shouldn’t skip. Below, we look at five ways that skipping a land survey can be more costly than the survey itself.
Potential Financial Pitfalls Of Skipping A Land Survey
You may save a little money on the front end by skipping a land survey, but it can definitely end up costing you more money in the long-run if you’re unlucky. Here are some of the ways forgoing a land survey can cost you:
- Property Line Disputes - Don’t assume that a cornfield, a row of bushes or a fence line is a marker of the actual property lines. A land survey will clearly define the boundaries of the property, showcasing where your property ends and a neighbor’s begins. This can help to limit potential property disputes and costly lawsuits.
- Future Use May Be Limited - A land survey can provide clear guidelines for future developments that may take place on the property. If you hope to build or expand on your property, a land survey is a must. You need to learn more about the space you intend to build on or improve, as there may be some restrictions in place.
- Shared Features - If the property shares any features with a neighbor or other businesses, you can learn more about these aspects of the property with a land survey. It can also ensure that a fence or driveway that you plan to build is placed in the correct location, as fixing a structure that was placed on a neighbor’s property will certainly be costly.
- Flood Potential - An unexpected flood can cripple your business or commercial investment, so it pays to know more about your flood risk. You can learn all about potential flood zones and flood planes with the help of a land survey. Some properties may be legally required to carry costly flood insurance based on their location, and knowing about this potential expense can ensure you don’t purchase a property that comes with surprise costs.
- Uncover Easements - Finally, a land survey can help to uncover easements associated with a property. For example, if an easement agreement exists with a neighbor or a utility company, it can affect how you’re allowed to develop your own property. These easements can be difficult to terminate, and they could also hurt your resale potential down the road, so learning about them well in advance of closing is imperative.
Contact a Commercial Title Company
Land surveys provide a prospective buyer with a wealth of information about a property, but they can also save you a lot of money by preventing issues down the road. If you want to work with a company who can assist with the process of securing a land survey and clearing a property title, connect with the team at Commercial Partners today at (612) 337-2470.