Have you heard of builders constructing buildings on disputed land? This is common in many parts of the world. Sometimes, land becomes disputed after a building is already upon it. In common sense, it would appear as if it is impossible to buy land that does not have a proper owner. But in reality, buying both real estate and disputed land is possible with some complex laws to back it up. Since laws differ from state to state, we must focus on Lakewood real estate and nearby regions to get a better idea of our position.
3 Things To Consider Before Buying Real Estate on Dispute Land
Land Status According to Law
Thankfully, most legal statements in this regard aim to protect the buyer, understanding that it is these people who face the most problems later on from buying disputed property.
California law requires sellers to disclose known disputes or encroachments on homes for sale in Lakewood as a part of a written notice. Buyers can rescind the sale or negotiate a price reduction if not disclosed.
Three types to understand include:
- Ownership disputes
- Boundary disputes
- Possession disputes
It is believed that possession disputes are the least problematic of the three because they involve minor issues with tenants or squatters, and can be resolved or settled.
Ownership Disputes
On the other hand, when there is a conflict of ownership it is one of the biggest problematic situations in which you can buy real estate.
In this way, you can get Los Alamitos real estate at almost half the price of its original valuation — depending on how well you can negotiate. However, the downside is that the other possible owner might not accept your authority and may take you to court for it.
You might find yourself fighting for justice in the place of the previous owner. However, it is important to note that every case is different.
Impact on Property Value and Resale
Right now you read how disputed property can be bought cheaply. Does that mean if you don’t resolve the dispute, we must sell at a very low profit too?
As time passes resale value may decrease by 10–20% or more, depending on the dispute’s severity. Even if resolved, the property’s history can still affect its value, and attract lower offers, making it harder to sell or refinance.
You can increase the value by adding renovations and facilities, but in the face of complex legality, this might have little benefit.
Last Thoughts
To make the best of a legal situation, we must adopt a contextual approach. Each case is unique, and you will find countless homes for sale in San Pedro that have some or other complex stories attached to them. So, as a buyer, we should consult our real estate company as well as a third-party lawyer to understand what are the many benefits and limitations we will have to face in the future if we make this purchase. Experienced lawyers will also be able to tell you whether there are any predictions for future changes in the law that might affect you. Learn More.