The right piece of commercial real estate can increase the chance your business succeeds. Location counts for a lot. Before you part with money, it is crucial to ensure there are no hidden surprises. While it will not cost much to fix a leaking water pipe, title problems could prove much more expensive.
Should I walk away from a piece of real estate with title issues?
Quiet title actions allow you to find out the facts before moving ahead with a real estate purchase. They can make clear whether a suspected issue is something you can remedy or whether you should walk away. Here are some examples of situations where you may use a quiet title action:
- The property has a mechanic’s lien: A quiet title lets you learn if the lien still exists or if it has been cleared and the issue is clerical. If it does still exist you may be able to negotiate a discount if you clear it.
- Other people claim ownership: Family members can sometimes feel unhappy with how a person’s estate is to be distributed. They may challenge the will. A quiet title helps you discover if other people’s claims to the property hold any weight.
- The boundary is poorly defined: The seller tells you the boundary stops five meters from the door. Yet, the neighboring landowner is currently building a fence four meters from your door. You can clarify where the line is before you buy.
You do not need to own a property to bring a quiet title action. They allow you to make sure your decision to purchase a piece of real estate is a wise one. It reduces the risk of any future problems.