Buying a commercial property in Florida is generally more complex than acquiring residential real estate. When someone invests a significant amount of money into a commercial property, any unforeseen claims to the property’s title may result in stressful situations.
In this article, you will find out how to clear a title when buying a commercial property in Florida.
Commercial Real Estate vs. Residential Property – A Realistic Overview
The term “commercial property” refers to properties used for business or income-generating purposes, such as office buildings, retail, and industrial properties. Different from residential real estate, commercial properties require a more strategic approach as:
- It is affected by economic fluctuations
- It has further compliance rules, such as permits, zonings, and land-use regulations
- It involves complex negotiation and contractual terms for lease and sales transactions
Before buying a commercial property in Florida, prospective buyers must work with an experienced attorney to identify:
- Whether the property is occupied
- If yes, how much time the current tenant has left on the lease
- Whether the tenant is current with payment obligations
- The lease and vacancy rates in the current market
- Whether the property needs improvements or repairs
- The effort required to improve or repair the premises (if applicable)
How to Clear Title When Buying Commercial Real Estate in Florida – The Essentials
The term “clear title” is used to designate a property title with no liens, creditors’ claims, or other clouds that may result in doubts concerning your ownership rights. Other common title issues include boundary disputes (encroachments) and easements.
If a commercial property has a clear title, the owner of the property is the only person who can claim legal ownership of that specific property. “Clearing” the title of a commercial property is fundamental to guarantee no unforeseen claims will affect its ownership in the future.
The most common types of title issues found in Florida commercial property transactions include:
- Filing or recording errors in public records
- Unknown liens or other encumbrances from previous owners
- The use of illegal deeds in previous transfers
- A previous seller who was not the lawful owner of the property
- A previous seller who did not own the property in full
- Document forgery
- Boundary or survey disputes
- Unknown heirs
When purchasing a Florida commercial property, work with an experienced attorney to identify and solve any title issues that may jeopardize your ownership rights to the property. Additionally, a legal advisor may serve as a zealot defender in the event of title litigation.
Performing Title Search
The first step to discover and solve title issues is to perform a title search. A title search is a thorough examination through a property’s title ownership history to determine:
- Whether the seller has full ownership of the property
- The existence of any liens, creditor’s lawsuits, pending mortgages, or other similar title issues
- The existence of unknown heirs or other third party’s claims against the property
- The existence of any restrictions or allowances that apply to the land (e.g., encroachments)
Without a proper title search, it is hard to determine which issues affect the title of a property and how to settle them before signing the purchase and sales agreement.
How to Clear Title When Buying Commercial Real Estate in Florida – Immediately Contact Attorney Romy B. Jurado
With years of experience handling commercial real estate transactions in Florida, Attorney Romy B. Jurado is willing to help you succeed. Call us today at (305) 921-0976 or email [email protected] to schedule a consultation.